F-D-I-C Closes Gulfsouth Bank

The Federal Deposit Insurance Corp. has seized another northwest Florida bank.

Federal regulators shut-down Gulfsouth Private Bank based in Destin.

Smartbank, based in Pigeon Forge, Tenn., agreed to assume all of Gulfsouth's deposits and purchase essentially all of its assets.

A group of 11 business leaders, most of them Destin area residents, started Gulfsouth Bank in early 2005, just before the bottom fell-out of the real estate market.

The bank operated 4-offices located in Destin, Santa Rosa Beach, Ft. Walton Beach and Pensacola.

As of July first, Gulfsouth's total assets were a little more than 159-million dollars, but nearly 32-million of that was classified as troubled assets. The bank lost a total of 9-million dollars the last 2-years.

Federal authorities say customers will not notice any differences as Smartbank takes over Gulfsouth. You can continue to make deposits, withdraw your money and make loan payments without interruption.

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