The Federal government has shut-down another area bank on Friday. The Federal Deposit Insurance Corporation closed The Bank of Bonifay Friday afternoon.

The financial institution became the victim of the banking crisis. Until Friday's closure, The Bank of Bonifay is the oldest existing business in Holmes County, and the oldest active state chartered bank in Florida.

It was incorporated and chartered in 1906. First Federal Bank of Florida, which is based in Lake City, is taking over Bank of Bonifay. All five of the branches, located in Bonifay, Defuniak Springs, Chipley, Destin and Marianna will be reopened first thing monday morning.

Although the signs will still say Bank of Bonifay, customers will automatically become depositors of First Federal Bank of Florida and will be insured by the F-D-I-C.

The acquisition gives First Federal it's first presence in the panhandle. First Federal management says all of the Bank of Bonifay employees will stay on-board to help with the transition.

The only other bank in our area to face a similar fate was People's First Community Bank back in December. Hancock Bank of Mississippi took over Peoples.

Bank of Bonifay is the 65th F-D-I-C insured institution to fail this year, the tenth in Florida.