The West Virginia Division of Financial Institutions (WVDFI) has closed The First State Bank and named the Federal Deposit Insurance Corporation (FDIC) as the receiver.
In a press release, the FDIC stated that the bank has experienced longstanding capital and asset quality issues, has been operating with financial difficulties since 2015.
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To safeguard depositors, FDIC signed a purchase and assumption deal with MVB Bank to undertake all the deposits of The First State Bank.
Apart from assuming the deposits, MVB Bank also agreed to buy nearly $147.2m of the bank’s assets.
The remaining $5m in assets will be held by FDIC for later disposition.
FDIC will continue to insure deposits so customers can retain their deposit insurance coverage up to applicable limits.
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By GlobalDataFDIC estimates that the cost to Deposit Insurance Fund (DIF) will be $46.8m. However, MVB Bank’s acquisition of First State was the least costly resolution for the DIF.
The regulator said that the loan customers can make their payments as usual. For requesting modifications to MVB Bank, customers can contact loan officers.
Additionally, the bank customers have been advised to continue using their existing branches until further notice from MVB Bank.
Customers can use ATMs or debit cards to access their money and can also write checks.
First State, which is based in Barboursville, West Virginia, has $152.4m in total assets and $139.5m in total deposits.
The bank’s branches will reopen under the name of MVB Bank during normal business hours.
