Federal regulators close Minnesota-based bank, twelfth U.S. bank failure of 2010
January 30th, 2010 - 4:39 pm ICT by BNO NewsHALLOCK, MINNESOTA (BNO NEWS) — Federal regulators on Friday closed the Marshall Bank, National Association in Hallock, Minnesota marking the eleventh U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.
The Marshall Bank, N.A. was closed by the Office of the Comptroller of the Currency after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the North Dakota-based United Valley Bank to assume all of the failed bank’s deposits.
Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Saturday, all 3 branches of the Marshall Bank, N.A. will reopen during their normal business hours as branches of United Valley Bank.
All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”
As of September of last year, the Marshall Bank, N.A. had approximately $59.9 million in total assets and $54.7 million in total deposits. United Valley Bank paid the FDIC a premium of 7.35 percent to assume Marshall Bank, N.A. deposits, the FDIC said. “In addition to assuming all of the deposits of the failed bank, United Valley Bank agreed to purchase essentially all of the failed bank’s assets.”
The FDIC and United Valley Bank entered into a loss-share transaction on approximately $23.9 million of Marshall Bank, N.A.’s assets. United Valley Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.
The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.1 million. It said United Valley Bank’s acquisition of the deposits was the “least costly” resolution compared to other alternatives.
Friday’s closure was not only the twelfth U.S. bank failure of 2010 but was also Minnesota’s second bank this year. Regulators last closed the St. Stephen State Bank in St. Stephen.
- Federal regulators close Minnesota-based bank, sixteenth U.S. bank failure of 2010 - Feb 06, 2010
- Federal regulators close Florida-based bank, eleventh U.S. bank failure of 2010 - Jan 30, 2010
- Federal regulators close Maimi-based bank, fifth bank failure of 2010 - Jan 23, 2010
- New York bank fails in rare Thursday closure, 27th bank failure of 2010 - Mar 12, 2010
- Federal regulators close Seattle-based bank, eighth U.S. bank failure of 2010 - Jan 23, 2010
- Federal regulators close Ohio-based bank, 31st U.S. bank failure of 2010 - Mar 20, 2010
- Federal regulators close Saint Stephen, Minnesota-based bank, third bank closure of 2010 - Jan 16, 2010
- Federal regulators close Georgia-based bank, tenth U.S. bank failure of 2010 - Jan 30, 2010
- Federal regulators close Oregon-based bank, ninth U.S. bank failure of 2010 - Jan 23, 2010
- U.S. federal regulators close 5 banks in 4 states - Apr 28, 2012
- U.S. federal regulators close First International Bank in Texas - Oct 01, 2011
- Horizon Bank in Washington marks first bank failure of 2010 - Jan 09, 2010
- New Mexico bank failure is the state's first in more than a decade - Jan 23, 2010
- Spanish bank acquires failed US bank - Aug 22, 2011
- Federal regulators close Missouri-based bank, sixth bank failure of 2010 - Jan 23, 2010
Tags: assumption, bank failure, bank united, bno, business hours, closing time, comptroller of the currency, debit cards, deposit insurance corporation, federal deposit insurance, federal deposit insurance corporation, federal deposit insurance corporation fdic, hallock minnesota, office of the comptroller, office of the comptroller of the currency, private sector, regulators, service disruptions, turbulent year, u s bank