June 18 - Putnam State Bank, Palatka, 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 Harbor Community Bank, Indiantown, Fla., to assume all of the deposits of Putnam State Bank.
As of March 31, 2012, Putnam State Bank had approximately $169.5 million in total assets and $160 million in total deposits. In addition to assuming all of the deposits of the failed bank, Harbor Community Bank agreed to purchase essentially all of the assets.
The FDIC and Harbor Community Bank entered into a loss-share transaction on $112.3 million of Putnam State Bank's assets. Harbor Community 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: www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about the transaction should call the FDIC toll-free at 800-640-2631. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/putnam.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $37.4 million. Compared to other alternatives, Harbor Community Bank's acquisition was the least costly resolution for the FDIC's DIF. Putnam State Bank is the 29th FDIC-insured institution to fail in the nation this year, and the fourth in Florida. The last FDIC-insured institution closed in the state was Security Bank, National Association, North Lauderdale, on May 4, 2012.