Regulators shut down First Priority Bank of Bradenton Friday, transferring about $214-million in insured deposits to SunTrust Bank.
It is the first Florida bank to fail since Tallahassee's Guaranty National was closed down in 2004. First Priority is the eighth bank to fail nationwide so far in 2008 in a stressed economy bank regulators say will likely produce more bank casualties.
The Florida Office of Financial Regulation said real estate losses and the slow economy depleted First Priority's capital. The Federal Deposit Insurance Corp. said the bank had about $13-million in potentially uninsured deposits — mostly deposits in accounts exceeding the FDIC's $100,000 limit on deposit insurance — for which customers will receive 50 cents on the dollar.
The failure is expected to cost the FDIC $72-million. SunTrust, which also is purchasing about $42-million of First Priority's assets, said it will work to try to find positions or First Priority's 50 employees.
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