United Fidelity assumes deposits of Florida bank

First City Bank of Florida, Fort Walton Beach, Fla., was closed on Oct. 16 by the Florida Office of Financial Regulation. Its deposits were assumed by United Fidelity Bank, fsb, Evansville, Ind.

The failed bank experienced longstanding capital and asset quality issues, the FDIC said, operating with financial difficulties dating back to 2009 unrelated to pandemic-caused difficulties.

As of June 30, First City Bank of Florida had approximately $134.7 million in total assets and $131.4 million in total deposits. It had two branches in Fort Walton Beach and Destin, Fla.

The cost to the Deposit Insurance Fund will be about $10 million.

“We welcome the customers and employees of First City Bank into the United family,” said Donald Neel, president and CEO of United Fidelity. “We look forward to bringing the high level of customer service for which we are known, as well as our broad range of products and services, to a market that our board of directors has long known as attractive.”

The $1.2 billion United Fidelity has 1 other branch in Florida, in Fort Myers, as well as 16 branches in Colorado, Illinois, Indiana and the U.S. Virgin Islands.

This is the third bank failure of the year. Previously, The First State Bank in Barboursville, W.Va., failed in April, and Ericson State Bank in Ericson, Neb., was closed in February.