Friday at 5:01 pm cst, Coastal Community Bank in Panama City Beach was taken over by the Federal Deposit Insurance Corp. (FDIC). All Coastal Community branches will be taken over and operated by Arkansas-based Centennial Bank. This seizure comes just more than 6 months after the area’s largest local bank, Peoples First, was taken over and redistributed by the FDIC.
As of right now, all Coastal Community customers will be able to use their same checks, check cards and credit cards and should be able to resume business as usual with their bank, they’ll just have a different name.
In addition to the Coastal Community branches, Centennial Bank also acquired Port St. Joe-based Bayside Savings Bank bringing their total expansion in the Florida Panhandle to 13 branch offices with around $444 million in total assets and $415 in deposits based on data from March 31, 2010.
As mentioned in a recent release from the FDIC:
As of March 31, 2010, Bayside Savings Bank had total assets of $66.1 million and total deposits of $52.4 million. Coastal Community Bank had total assets of $372.9 million and total deposits of $363.2 million. Centennial 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, Centennial Bank will purchase virtually all their assets.
The FDIC and Centennial Bank entered into loss-share transactions on $48.3 million of Bayside Savings Bank’s assets and $302.8 million of Coastal Community Bank’s assets. Centennial 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 Bayside Savings Bank customers, 1-800-405-6318; and for Coastal Community Bank customers, 1-800-523-0640. The phone number for Bayside Savings will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 8:00 a.m. to 6:00 p.m., EDT; on Sunday from noon until 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT; and during the same hours, Central Daylight Time, for Coastal Community Bank customers.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $16.2 million for Bayside Savings Bank and $94.5 million for Coastal Community Bank. Compared to other alternatives, Centennial Bank’s acquisition was the least costly resolution for the FDIC’s DIF.