Regulators shut Florida bank, 131st of year

December 12, 2009

WASHINGTON - Regulators on Friday shut down Republic Federal Bank in Florida, the 131st to succumb so far this year as U.S. banks big and small have been undermined by sour loan portfolios and the battered economy. The Federal Deposit Insurance Corp. took over Miami-based Republic Federal, with $433 million in assets and $352.7 million in deposits. A bank based in Boca Raton, Fla., 1st United Bank, agreed to assume all the deposits and $267.1 million of the assets of the failed bank. The FDIC will retain the rest for eventual sale. In addition, the FDIC and 1st United Bank agreed to share losses on $210.4 million of Republic Federal's loans and other assets. The FDIC estimates the failure of Republic Federal will cost the deposit insurance fund $122.6 million. Maryland has had two bank failures this year.

- Associated Press

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