December 19, 2009
Peoples First Community Bank was shut down Friday by federal regulators after struggling for more than a year against mounting financial losses.
Peoples First is based in Panama City and has three branches in Pensacola, one in Gulf Breeze and one in Pace. Before several branch closures this year, the bank had 33 locations stretching from the Panhandle to Orlando.
The remaining 29 branches of Peoples First will reopen during normal business hours today as branches of Hancock Bank, according to a press release by the Federal Deposit Insurance Corp., which is orchestrating the takeover.
Peoples First customers can continue to write checks, use ATM or debit cards and conduct other business as usual with the bank, according to the FDIC, and loan customers should continue making payments.
The takeover, which was ordered by the Office of Thrift Supervision, will not have an impact on the finances of most Peoples First account holders, but customers holding more than $250,000 in interest-bearing accounts may lose money in the transition to new ownership.
Peoples First has been under review by federal regulators since February, when its capital fell to levels deemed unhealthy by federal guidelines.
The bank has $1.8 billion in assets and $1.7 billion in deposits, but has lost more than $135 million in 2009.
Peoples First officials said the bank's financial problems stemmed mainly from falling real estate values and customers who were unable to repay loans issued by the bank.
"During the current, prolonged recession, many of our customers, due to job loss or other factors, find that they are unable to repay their obligations to us. We have seen drastic, nearly catastrophic declines in real estate values," bank officials said in a statement explaining its problems.
Last week, the bank held about $221 million in nonperforming loans more than 90 days past due, and another $60 million in loans between 30 and 90 days past due.
Peoples First was one of four banks taken over by the FDIC Friday, bringing to 137 the number of U.S. banks that have failed this year.
The Associated Press and Panama City News Herald reporter Will Hobson contributed to this report.
Peoples First Community Bank was shut down Friday by federal regulators after struggling for more than a year against mounting financial losses.
Peoples First is based in Panama City and has three branches in Pensacola, one in Gulf Breeze and one in Pace. Before several branch closures this year, the bank had 33 locations stretching from the Panhandle to Orlando.
The remaining 29 branches of Peoples First will reopen during normal business hours today as branches of Hancock Bank, according to a press release by the Federal Deposit Insurance Corp., which is orchestrating the takeover.
Peoples First customers can continue to write checks, use ATM or debit cards and conduct other business as usual with the bank, according to the FDIC, and loan customers should continue making payments.
The takeover, which was ordered by the Office of Thrift Supervision, will not have an impact on the finances of most Peoples First account holders, but customers holding more than $250,000 in interest-bearing accounts may lose money in the transition to new ownership.
Peoples First has been under review by federal regulators since February, when its capital fell to levels deemed unhealthy by federal guidelines.
The bank has $1.8 billion in assets and $1.7 billion in deposits, but has lost more than $135 million in 2009.
Peoples First officials said the bank's financial problems stemmed mainly from falling real estate values and customers who were unable to repay loans issued by the bank.
"During the current, prolonged recession, many of our customers, due to job loss or other factors, find that they are unable to repay their obligations to us. We have seen drastic, nearly catastrophic declines in real estate values," bank officials said in a statement explaining its problems.
Last week, the bank held about $221 million in nonperforming loans more than 90 days past due, and another $60 million in loans between 30 and 90 days past due.
Peoples First was one of four banks taken over by the FDIC Friday, bringing to 137 the number of U.S. banks that have failed this year.
The Associated Press and Panama City News Herald reporter Will Hobson contributed to this report.
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