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Progress Bank of Florida fails; sold to Bay Cities Bank

Tampa-based Progress Bank of Florida was shuttered by regulators Friday, and its assets were bought by another Tampa institution, Bay Cities Bank.

First Bank of Jacksonville was also shut down Friday, bringing the tally of Florida's bank failures to 27 so far this year. Nationally, the number of bank failures reached 136, as two more Georgia institutions also failed.

Progress Bank's two branches in Tampa will be reopened Monday as branches of Bay Cities.

Progress Bank, which had $111 million in assets and $101 million in deposits, has long been viewed as susceptible to failing. For most of the year, it received a "zero-star" rating from ratings agency Bauer Financial, an indication of being "troubled and problematic." In August, state and federal regulators assumed oversight of the bank's board and told management to recapitalize quickly through a merger or sale to stay afloat.

The FDIC and Bay Cities entered into a loss-share deal on $82.6 million of Progress Bank's assets. Under the deal with regulators, Bay Cities did not pay the FDIC a premium for Progress Bank's deposits and agreed to buy virtually all of the bank's assets.

Bay Cities, an 11-year-old bank with more than $500 million in assets, currently has six locations in the bay area.

Progress Bank of Florida fails; sold to Bay Cities Bank 10/22/10 [Last modified: Friday, October 22, 2010 8:33pm]
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