SPAN
April 1934-April 2010

HEADQUARTERS
Palatka

REGULATORS
OTS

TOTAL ASSETS AT FAILURE
$393 million

COST TO FDIC
$6 million

DIRECTORS
Tito Smith
Wesley Smith
Ken Easterling
John Thompson
Howard Gardner Jr.
John L. Mikell

The Florida Office of Financial Regulation did not oversee First Federal Bank of North Florida. The FDIC published only a cursory review of its failure.

The primary cause, the FDIC said, was the pursuit of aggressive growth through high-risk loans to developers and speculators.

The bank's loan management processes also were unsound, the FDIC said.

In 2007 and 2009, the Office of Thrift Supervision, OTS, criticized the bank for using old financial data when renewing loans, and for not conducting timely reviews.

OTS regulators also said the reviews were not adequate because they were performed by loan officers who had made the loans, and not by impartial analysts.

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