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MIAMI-The Office of the Comptroller of the Currency closed down local Republic Federal Bank on Friday and appointed the Federal Deposit Insurance Corp. as receiver. The FDIC, in turn, has sold some of those assets to First United Bank of Boca Ratan, FL, with both entities entering into a loss-share transaction on approximately $210.4 million of the assets.

The South Florida Business Journal reports that the FDIC will cover 80% of the losses on the disposition of the loans up to $36 million, and 95% of the losses that exceed that amount. The transaction excludes most non-performing loans, other real estate owned, and acquisition, development and construction loans, residential and commercial land loans, export-import bank loans and loans to foreign nationals, the article adds. Meanwhile, a press release on the FDIC’s website says Republic Federal four branches will open Monday under the First United Bank brand.

The South Florida Business Journal reported last May that Republic Federal’s capital ratios moved to “undercapitalized” status, per regulatory guidelines, after it lost $11.5 million during Q1. The bank’s equity capital continued to plunge, leading to financial difficulties.

Republic Federal Bank joins two other Florida banks that failed this past year. The state’s largest bank, BankUnited FSB in Coral Gables, FL was closed in May, while Integrity Bank, headquartered in Jupiter, FL, was shut down in July.

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