Main Street Bank, Northville, Michigan today became the fourteenth bank to be taken over by the FDIC. You can read the FDIC release at the official web page here.
Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.
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Main Street Bank had total assets of $98 million in total assets and $86 million in total deposits as of October 7, 2008.
Monroe Bank & Trust has agreed to pay a total premium of 1 percent for the failed bank’s deposits. In addition, Monroe Bank & Trust will purchase approximately $16.9 million of Main Street’s assets, and have a 90-day option to purchase approximately $1.1 million in premises and fixed assets. The FDIC will retain the remaining assets for later disposition.
The FDIC said customers’ access to their money over the weekend will not be interrupted.
The failed bank’s two offices will reopen Saturday, October 11th, as branches of Monroe Bank & Trust. Over the weekend, customers of Main Street Bank can access their money by writing checks or using ATM or debit cards.
The FDIC estimates that the cost to its Deposit Insurance Fund will be between $33 million and $39 million. Monroe Bank & Trusts’ acquisition of all deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the failed bank’s franchise.
For more information go to the FDIC web page.
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