The failure of Peninsula Bank in Englewood is expected to cost the Federal Deposit Insurance Corp.'s deposit insurance fund more than originally expected.

The estimated loss to the insurance fund was $192.6 million when the bank closed on June 25, 2010. As of Sept. 30, the estimated loss had increased to $214.5 million and since that time has remained above $200 million, according to a report from the Office of Inspector General for the U.S. Department of the Treasury.

Peninsula, with $655.3 million in total assets when it was closed by the Florida Office of Financial Regulation, failed primarily because the board of directors and management did not effectively manage risks associated with rapid growth, the report said.

That growth, from 2003 to 2006, led to a heavy concentration in commercial real estate loans, primarily acquisition, development and construction loans. The bank's capital levels did not increase commensurate with the risk, the report said. Liberal underwriting practices and lax oversight of lending also contributed to asset quality problems that developed when economic conditions in the market deteriorated.

Peninsula also was dependent on non-core funding sources, particularly timed deposits of $100,000 or more, brokered deposits and loans from the Federal Home Loan Bank, the report said. Those funding sources became limited when Peninsula's financial condition deteriorated, although that was not a primary cause of the failure, the report said.

Premier American Bank, headquartered in Miami, acquired the offices, deposits and assets of Peninsula after it failed, under a loss-sharing agreement with the FDIC.

Margie Manning's beats include health care, banking and technology.