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Federal Regulators Close First National Bank of Florida

The Office of the Comptroller of the Currency (OCC) appointed the FDIC receiver of the ""First National Bank of Florida"":http://www.fnbfl.com/ late Friday evening, making it the 71st FDIC-insured institution to go under this year.

The OCC said it acted after finding that the bank ""had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices.""

According to the federal regulator, the First National Bank of Florida was facing substantial losses that would have depleted its capital, with ""no reasonable prospect"" that would allow the bank to replenish its funds without federal assistance.

The First National Bank of Florida, headquartered in Milton, operated eight branch offices, with $280 million in deposits and $297 million in assets.

The FDIC entered into a purchase and assumption agreement with ""CharterBank"":http://www.charterbk.com out of West Point, Georgia, to assume all of the deposits of the First National Bank of Florida and purchase all of its assets.

The FDIC and CharterBank entered into a loss-share transaction on $216.3 million of the acquired assets. The Florida bank's failure is expected to cost the FDIC's deposit insurance fund $46.9 million.