Regulators close Florida bank; toll for the year stands at 119

Regulators seized Horizon Bank in Bradenton, Fla., on Friday, six months after the Federal Reserve issued a "prompt corrective action'' order calling for the institution to raise new capital or find a buyer or merger partner.

 

Horizon was the 119th bank closed in the United States so far this year. Twenty three of those failures have been in Florida, one of the states hardest hit by the collapse in the real estate market.

 

The Federal Deposit Insurance Corp. arranged for Bank of the Ozarks to take over Horizon's four branches, its $164.6 million in deposits and its $187.8 million in assets. Bank of the Ozarks, based in Little Rock, Ark., did not pay a premium to acquire the deposits.

 

The FDIC agreed to share losses with Bank of the Ozarks on $150.4 million of Horizon's assets.

 

Horizon's parent company, Horizon Bancorporation Inc., had been trying unsuccessfully to raise between $8.5 million and $20 million through a stock offering. It also was lobbying regulators for more time to solve its problems.

 

Although Horizon Bancorporation managed to post a $119,967 million profit for the second quarter, it remained significantly undercapitalized. Its net loss for the first half of the year totaled $1.75 million, on top of an $8.13 million loss last year.

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