HALLOCK, MN BANK SHUT DOWN BY FEDERAL REGULATORSMarshall Bank of Hallock to be taken over by Cavalier bank.
Regulators have shut down a Hallock, MN bank along with three others around the country today.
The Federal Deposit Insurance Corporation says that United Valley Bank of Cavalier has agreed to buy the financially-troubled bank. The three branches of Marshall Bank will reopen Monday as branches of United Valley.
The federal seizure of the bank should not impact customers as the FDIC insures deposits and United Valley will take over operations. Bank customers can write checks and use their ATM cards this weekend. Also, loan customers should continue to make payments.
The FDIC says that as of September 30, 2009, Marshall Bank had almost $60 million in total assets versus $54.7 million in total deposits. In addition to assuming all the deposits, United Valley Bank also agreed to purchase most of the failed bank's assets.
The FDIC says it estimates that the cost of the bank's failure to its insurance fund will be just over $4 Million. That money does not come from taxpayers, but rather from insurance premiums paid by all FDIC banks.
For customers of Marshall Bank who have questions, the FDIC has a website that you can find by following the link on this page. There is also a toll-free number you can call over the weekend for information. That number is 1-800-405-7869. You can call between 9 a.m and 6 p.m. on Saturday and between Noon and 6 p.m. on Sunday.
Other banks seized by the FDIC Friday include: First National Bank of Georgia, based in Carrollton, Ga., with $832.6 million in assets and $757.9 million in deposits; Community Bank and Trust of Cornelia, Ga., with $1.2 billion in assets and $1.1 billion in deposits; and Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits.
The actions taken today boost to 13 the number of bank failures so far in 2010, following 140 closures last year in the punishing economic climate.
Information from WDAZ and Associated Press.