Metro Bank of Dade County, Miami, Florida and Turnberry Bank, Aventura, Florida were closed today
Metro Bank of Dade County, Miami, Florida and Turnberry Bank, Aventura, Florida were closed today by federal and state banking agencies, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the institutions. To protect depositors, the FDIC entered into purchase and assumption agreements with NAFH National Bank, Miami, Florida, a newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits and essentially all the assets of the three failed institutions.
Metro Bank of Dade County was closed by the Florida Office of Financial Regulation; Turnberry Bank was closed by the Office of Thrift Supervision; The failed institutions were not affiliated with one another.
Metro Bank of Dade County has six branches and Turnberry Bank has four branches. Depositors will automatically become depositors of NAFH National Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of the three failed institutions should continue to use their former branches. Over the weekend, depositors can access their money by writing checks or using ATM or debit cards.
As of March 31, 2010, Metro Bank of Dade County had total assets of $442.3 million and total deposits of $391.3 million, while Turnberry Bank had total assets of $263.9 million and total deposits of $196.9 million. NAFH National Bank did not pay the FDIC a premium for the deposits of the failed banks. In addition to assuming all the deposits from the two Florida institutions NAFH National Bank will purchase virtually all their assets.
The FDIC and NAFH National Bank entered into loss-share transactions on $299.3 million of Metro Bank of Dade County's assets and $194.6 million of Turnberry Bank's assets. NAFH National Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transactions can call the FDIC toll free: for Metro Bank of Dade County customers, 1-800-430-8098; for Turnberry Bank customers, 1-800-450-5143; which will be in opperation from 8:00 a.m. to 8:00 p.m. EDT. Interested parties can also visit the FDIC's Web sites: for Metro Bank of Dade County,
http://www.fdic.gov/bank/individual/failed/metrobankfl.html and for Turnberry Bank,
http://www.fdic.gov/bank/individual/failed/turnberry.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Metro Bank of Dade County will be $67.6 million and for Turnberry Bank, $34.4 million. Compared to other alternatives, NAFH National Bank's acquisition was the "least costly" resolution for the FDIC's DIF.
These closings bring the total banks closed in Florida to sixteen. Prior to these failures, the last bank closed in Florida was Peninsula Bank, Englewood, on June 25, 2010.
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