SmartBank Assumes Deposits of GulfSouth Private Bank in Florida

Oct 22 - GulfSouth Private Bank, Destin, Fla., has been closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with SmartBank, Pigeon Forge, Tennessee, to assume all of the deposits of GulfSouth Private Bank.

As of June 30, 2012, GulfSouth Private Bank had approximately $159.1 million in total assets and $151.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, SmartBank agreed to purchase essentially all of the assets.

Customers with questions about the transaction should call the FDIC toll-free at 800-822-7182.  Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/gulfsouth.html.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $36.1 million. Compared to other alternatives, SmartBank's acquisition was the least costly resolution for the FDIC's DIF. GulfSouth Private Bank is the 44th FDIC-insured institution to fail in the nation this year, and the sixth in Florida. The last FDIC-insured institution closed in the state was The Royal Palm Bank of Florida, Naples, on July 20, 2012.