Banking regulators seized Commerce Bank of Southwest Florida and sold the tiny Fort Myers bank to Central Bank, of Stillwater, Minn., marking the 124th U.S. bank to fail during 2009 and the 12th in Florida.

The sole branch of Commerce Bank of Southwest Florida is set to reopen Monday as a branch of Central Bank.

Central Bank, a small Minnesota-based institution, has recently been buying up failed institutions. It previously had no banking presence in Florida.

The Federal Deposit Insurance Corp. was appointed receiver of the failed bank by the Florida Office of Financial Regulation. The FDIC agreed to share in losses related to $61 million of Commerce Bank's assets as part of its deal with Central Bank, which is taking on all of the bank's $79.7 million in assets.

The FDIC estimates the bank failure will cost its insurance fund $23.6 million, which it said was the least costly resolution it could find.

An FDIC spokesman said the agency contacted 536 potential bidders about the failed bank and drew three bids.

-- MARTHA BRANNIGAN

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