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Two Local Banking Companies Shut Down
07/30/10 - 07:54 PM
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Two local banks in our area are closing.  The FDIC sent out a notice Friday.

Bayside Savings Bank in Port Saint Joe and Coastal Community Bank, based in Panama City, are both shutting down.  Thirteen branches are closing between both banking companies.
All branches will reopen as Centennial Bank this upcoming Monday.  Centennial bank is based out of Arkansas.

Coastal Community Bank was regulated by the Florida Office of Financial Regulation.  Florida Office of Financial Regulation Communications Director, Flora Beal, said in a statement that the “capital levels for coastal community bank were not at safe or sound levels.”

Bayside Savings Bank was issued a cease and desist order in December 2009 by the Office of Thrift Supervision, asking them to raise additional capital.  The Bayside Savings company was unable to do that.

So, both companies were turned over to the FDIC at the close of business Friday.

Spokespeople with the FDIC confirm they got several bids to buy out banks.  Centennial Bank won the bid, based on their low risk to the FDIC’s insurance fund.  They will now collect all the assets for both banking companies. The FDIC release says as of March 31, 2010, Bayside Savings Bank had total assets of $66.1 million and total deposits of $52.4 million. Coastal Community Bank had total assets of $372.9 million and total deposits of $363.2 million.

As for the employees at the closing banks, the FDIC says it is up to Centennial Bank to decide whether to keep them.  One FDIC spokesperson says most of the employees from the failed banks will most likely stay through the transition.

Officials are assuring people who have accounts open with either of the failing banks, that their money and account information is safe.

“Their deposits are safe,” FDIC spokeswoman LaJuan Williams-Young said. “They can continue to do business as they normally would. They probably will just notice the change in the sign over the door of the bank. They should continue using their bank branch as normal until they get word from Centennial Bank that they can go to any other Centennial Bank branch.”

Williams-Young confirms that savings and checking accounts are safe.

The FDIC says people can continue to use their debit cards and checks until further notice. To add, all loan payments should be sent to the same address.

Customers who have questions about Friday’s transactions can call the FDIC toll free at 1-800-523-0640.