Clewiston's Olde Cypress Bank Fails

Now Branch Of Winter Haven's CenterState Bank

CLEWISTON, FL. -- Olde Cypress Community Bank, Clewiston, Florida, was closed Friday afternoon by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of Olde Cypress Community Bank.

The four branches of Olde Cypress Community Bank will reopen on Saturday as branches of CenterState Bank of Florida, N.A. Depositors of Olde Cypress Community Bank will automatically become depositors of CenterState Bank of Florida, N.A.

Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Olde Cypress Community Bank should continue to use their existing branch until they receive notice from CenterState Bank of Florida, N.A. that it has completed systems changes to allow other CenterState Bank of Florida, N.A. branches to process their accounts as well.

Friday evening and over the weekend, depositors of Olde Cypress Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, Olde Cypress Community Bank had approximately $168.7 million in total assets and $162.4 million in total deposits. CenterState Bank of Florida, N.A. did not pay the FDIC a premium for the deposits of Olde Cypress Community Bank. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, N.A. agreed to purchase essentially all of the assets.

The FDIC and CenterState Bank of Florida, N.A. entered into a loss-share transaction on $128.2 million of Olde Cypress Community Bank's assets. CenterState Bank of Florida, N.A. 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 transaction can call the FDIC toll-free at 1-800-591-2817. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http ://www.fdic.gov/bank/individual/failed/oldecypress.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.5 million. Compared to other alternatives, CenterState Bank of Florida, N.A.'s acquisition was the "least costly" resolution for the FDIC's DIF. Olde Cypress Community Bank is the 95th FDIC-insured institution to fail in the nation this year, and the seventeenth in Florida. The last FDIC-insured institution closed in the state was Turnberry Bank, Aventura, earlier Friday.

All shares of Olde Cypress Community Bank were owned by its holding company, First Glades Corporation, Inc., Clewiston, FL. The holding company was not included in the closing of the bank or the resulting receivership.

The bank has been on troubled bank lists for at least a year, and was given a zero star rating by Bauer Financial in Spring of 2009, along with the former Florida Community Bank which failed in January 2010.

3/10/10 Warning Story About Hendry's Troubled Olde Cypress Bank: http://swflorida.blogspot.com/2010/03/which-hendry-bank-is-next-to-be-taken.html
3/17/09 Story On Local Troubled Banks: http://swflorida.blogspot.com/2009/03/two-hendry-county-banks-on-troubled.html