Jackson County Times

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Friday, May 14, 2010

Bank of Bonifay Is Purchased Through FDIC Action Becomes second local banking institution to fall under FDIC ruling

By Sid Riley

Earlier this week it was announced that due to FDIC regulators action, the ownership of The Bank of Bonifay had changed. The bank had been struggling to maintain the performance requirements established by FDIC regulators for many months.
First Federal Bank of Florida acquired all deposits of The Bank of Bonifay through a purchase and assumption agreement with the FDIC. As a result of the transaction, First Federal Bank of Florida acquired certain assets and liabilities including all deposit accounts and selected loans of The Bank of Bonifay. Loans not purchased by First Federal have been retained by the FDIC for later disposition. Until notified otherwise, customers should continue to make payments as they have in the past.
First Federal has been serving customers since 1962, when it opened as a Savings and Loan in Live Oak, Florida. Today the bank has a well managed portfolio of business, mortgage and personal deposits, serving over 46,000 customers, and employs over 315 people. First Federal Bank of Florida is ranked as one of the top performing banks in the U.S. by TheStreet.com, an independent ratings firm. First Federal is examined by the Office of Thrift Supervision, (OTS) who ranks FFBF as “Well Capitalized.” First Federal enjoys a solid balance sheet, ample liquidity and reserves. First Federal Bank of Florida earned a “5 STAR – Superior” rating from Bauer Financial, Inc.
This purchase of the five branches of the Bank of Bonifay now gives First Federal a good basis of community banking in the North Florida region. First Federal purchased $78.7 million of the Bank of Bonifay’s assets. The balance of the assets will be held by the FDIC.
This makes the Bank of Bonifay the 65th bank to fail in the USA thus far this year, and the tenth in Florida. In Jackson County, Peoples First was previously acquired by Hancock Bank.
The Bank of Bonifay began to have trouble in 2008, when the previous owners, Guy and Mike Medley came out of retirement to resume control and operation of the bank.

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