Central Progressive Bank, Lacombe, Louisiana

Central Progressive Bank, Lacombe, Louisiana, is the 90th FDIC-insured institution to fail in the nation in 2011. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.1 million.

Central Progressive Bank, Lacombe, Louisiana, was closed today by the Louisiana Office of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First NBC Bank, New Orleans, Louisiana, to assume all of the deposits of Central Progressive Bank.

The 17 branches of Central Progressive Bank will reopen during their normal business hours beginning Saturday as branches of First NBC Bank. Depositors of Central Progressive Bank will automatically become depositors of First NBC Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Central Progressive Bank should continue to use their existing branch until they receive notice from First NBC Bank that it has completed systems changes to allow other First NBC Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Central Progressive Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, Central Progressive Bank had approximately $383.1 million in total assets and $347.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, First NBC Bank agreed to purchase approximately $354.4 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today’s transaction should call the FDIC toll-free at            1-800-234-9027      . The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8 a.m. to 8 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have any further questions please do not hesitate to visit the FDIC webpage for Central Progressive Bank.