September 17, 2010 – Bramble Savings Bank, Milford, Ohio, was closed today by the Ohio Division of Financial Institutions, which appointed the FDIC as receiver. The FDIC sold Bramble Savings Bank to Foundation Bank, Cincinnati, Ohio, which will assume all deposits and purchase essentially all assets of failed Bramble Bank.
Bramble Savings Bank was a small bank with only one branch and $41.6 million in deposits. All depositors of Bramble will automatically become depositors of Foundation Bank with no interruption in FDIC deposit insurance protection. Depositors will have full access to their accounts over the weekend.
Bramble Savings Bank was founded in 1916 and was one of the state’s oldest banking institutions. Before being taken down, the Bramble Savings website noted their long history and stated that “Bramble Savings Bank” is poised and excited to see what the next 90 years bring to Bramble and the communities of the tri state”.
Foundation Bank did not pay a premium to the FDIC to assume the deposits of the failed bank and the FDIC made no mention of a loss-share agreement with Foundation Bank on the sale of Bramble’s assets. The FDIC said that “compared to other alternatives, Foundation Bank’s acquisition was the least costly resolution for the FDIC’s DIF”.
Bramble Savings Bank is the 124th banking failure this year and the second in Ohio. The estimated cost to the FDIC Deposit Insurance Fund for the closing of Bramble Bank is estimated at $14.6 million or 30% of Bramble’s total assets.