Old Southern Bank in Orlando opened today, March 15th, as Centennial Bank, having been purchased last Friday by that institution. The Federal Deposit Insurance Corporation (FDIC) closed Old Southern and its seven branches and entered into a purchase and assumption agreement with Centennial Bank, based in Conway, Arkansas.
The FDIC said in a statement that, depositors of Old Southern Bank will automatically become depositors of Centennial Bank. The FDIC statement also stated that, deposits of Old Southern Bank will will continue to be insured by the FDIC and customers should continue to use their former Old Southern Bank branch until they receive notice from Centennial Bank that it has completed systems changes to allow other Centennial Bank branches to process their accounts as well.
As of December 31, 2009, Old Southern Bank had approximately $315.6 million in total assets and $319.7 million in total deposits. Centennial Bank will pay the FDIC a premium of 1.00 percent to assume all of the deposits of Old Southern Bank. In addition to assuming all of the deposits, Centennial Bank agreed to purchase essentially all of the failed bank’s assets. The FDIC and Centennial Bank entered into a loss-share transaction on $282.7 million of Old Southern Bank’s assets.
Old Southern is the fifth bank in Florida to be closed by the FDIC in 2010. A total of 30 banks nationwide have been shuttered so far this year.
