Federal regulators close Gulf State Community Bank

Gulf State Community Bank was closed Friday by the Florida Office of Financial Regulation and was immediately taken over by Centennial Bank which is based in Conway, Arkansas.

Centennial also took over Apalachicola State Bank earlier this year.
Gulf State Community bank has been operating under a consent order since last November; it suffered heavy losses because of the downturn in the housing market.
As of September 30th, Gulf State Community Bank had approximately $112.1 million dollars in total assets and $112.2 million in total deposits.
Centennial Bank assumed all of the deposits of Gulf State Community Bank and agreed to purchase essentially all of the assets.
The FDIC and Centennial Bank entered into a loss-share transaction on $84.4 million dollars of Gulf State Community Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $42.7 million.
Gulf State Community Bank is the 147^th FDIC-insured institution to fail in the nation this year, and the 28^th in Florida.
Gulf State bank customers shouldn’t see much of a change; the five branches of Gulf State Community Bank reopened on Saturday as branches of Centennial Bank.
Depositors of Gulf State Community Bank automatically became depositors of Centennial Bank.
Deposits will continue to be insured by the FDIC, and checks drawn on the bank will continue to be processed.
Loan customers should continue to make their payments as usual.
Customers who have questions about the change can call the FDIC toll-free at 1-800-774-8035. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m. EST and on Sunday from noon to 6:00 p.m..
There has also been a website set up with more information about the closure – the link can be found at the news page at oysterradio.com.


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