Michigan’s Warren Bank Among Those Closed Friday

Posted by Orb Staff on October 05, 2009 No Comments
Categories : Residential Mortgage

Three banks were closed Friday, costing the Federal Deposit Insurance Corp.'s (FDIC) Deposit Insurance Fund an estimated $293.3 million and bringing this year's bank failure count to 98.

The largest failure was Warren, Mich.-based Warren Bank, which was closed by the Michigan Office of Financial and Insurance Regulation. The FDIC, which was appointed receiver, entered a purchase and assumption agreement with The Huntington National Bank. The Huntington National Bank will also purchase approximately $83 million of the failed bank's assets.

Central Bank, Stillwater, Minn., has agreed to assume the deposits and purchase essentially all of the assets belonging to Jennings State Bank, Spring Grove, Minn., which was also closed. As of July 31, Jennings State Bank had total assets of $56.3 million and total deposits of approximately $52.4 million. The FDIC and Central Bank entered into a loss-share transaction on approximately $37.7 million of Jennings State Bank's assets.

Southern Colorado National Bank, Pueblo, Colo., was closed by the Office of the Comptroller of the Currency, with Legacy Bank, Wiley, Colo., agreeing to assume all of the deposits. In addition to assuming all of the deposits of Southern Colorado National Bank, Legacy Bank has entered into a loss-share transaction with the FDIC on approximately $25.5 million of Southern Colorado National Bank's assets.

SOURCE: FDIC

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