Florida regulators have closed First Priority Bank, Bradenton, Fla., after losses on commercial real estate loans crippled the $260 million bank. The Federal Deposit Insurance Corp. will end up selling most of the assets. SunTrust Bank, Atlanta, has assumed all the insured deposits, but purchased none of the real estate assets. A subsidiary of Beal Bank Nevada, Las Vegas, purchased only $42 million of the failed bank's assets. As of March 31, First Priority had $34.9 million in nonperforming real estate loans on its books, up from $4.6 million in the first quarter of 2007. The FDIC estimates that First Priority will cost the deposit insurance fund $72 million. It is the eighth bank to fail this year.
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