Weekend Economists Going to the Dickens December 16-18, 2011

[Demeter]

1. ONE BANK DOWN!

Premier Community Bank of the Emerald Coast, Crestview, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Summit Bank, National Association, Panama City, Florida, to assume all of the deposits of Premier Community Bank of the Emerald Coast.

The two branches of Premier Community Bank of the Emerald Coast will reopen on Monday as branches of Premier Community Bank, a division of Summit Bank, National Association...As of September 30, 2011, Premier Community Bank of the Emerald Coast had approximately $126.0 million in total assets and $112.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, Summit Bank, National Association agreed to purchase essentially all of the assets.

The FDIC and Summit Bank, National Association entered into a loss-share transaction on $98.0 million of Premier Community Bank of the Emerald Coast's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.2 million. Compared to other alternatives, Summit Bank, National Association's acquisition was the least costly resolution for the FDIC's DIF. Premier Community Bank of the Emerald Coast is the 91st FDIC-insured institution to fail in the nation this year, and the thirteenth in Florida. The last FDIC-insured institution closed in the state was Old Harbor Bank, Clearwater, on October 21, 2011.