Federal Deposit Insurance Corp. freed of failed bank

After seven years, the Community Bank of Marco is officially dead

Lisa Conley
Marco Eagle

Seven years ago state regulators shut down Marco Community Bank. Since then, the Federal Deposit Insurance Corp. (FDIC) has been working to recover the maximum amount possible from the disposition of the bank's assets, and it seems it's finally done so.

State regulators shut down Marco Community Bank, one of Florida's most troubled banks, in 2010.

According to the FDIC's website, when an insured depository institution fails, the FDIC is ordinarily appointed receiver, which means it tries to recoup the bank's losses. The FDIC terminates its receivership after it has "completed the disposition of the receivership’s assets and has resolved all obligations, claims, and other legal impediments."

It terminated its receivership estate of Marco Community Bank effective July 1, 2017.

The bank's troubles began in August 2007 when it entered into a written agreement with the Reserve Bank and Office of Financial Regulation after an examination revealed violations of law and unsafe practices.

According to the agreement, which served as a corrective measure, problems included the following: deficiencies in loan policies; under-qualified managers; a high volume of adversely classified loans; lack of a reliable loan grading system; a high level of past due and non-performing loans; and a poor evaluation of probable losses, including the existence of unidentified losses in loans adversely classified.

Just nine months later, in May 2008, a bank watchdog website placed Marco Community Bank on a list of the most troubled banks in the state. It received a D- grade on a scale from A to E, meaning it demonstrated "significant weaknesses which could negatively impact depositors or creditors. In an unfavorable economic environment, these weaknesses could be magnified."

More:Marco Community Bank makes list of Florida's most troubled banks

Then in February 2010 state regulators shut down the bank, just weeks after an executive warned shareholders that it was in danger of failing.

The Florida Office of Financial Regulation closed the bank and appointed the FDIC as the receiver.

Mutual of Omaha agreed to purchase essentially all of the Marco bank's assets and paid the FDIC a premium of 1.5 percent to assume all of its deposits.

The FDIC and Mutual of Omaha agreed to share losses on $104.8 million in assets.

More:Marco Community Bank shut down

The FDIC provides insurance coverage for deposits up to $100,000, but any depositor caught up in a FDIC bank failure may end up waiting weeks before receiving their principal payout.

To find a bank's information visit www.fdic.gov and follow links to "consumer resources" and "bank find" or call 877-275-3342.

Laura Layden of the Naples Daily News and Kelly Farrell contributed to this article.