The nation’s 39th banking failure of 2011 occurred in Michigan when regulators closed the Community Central Bank of Michigan. According to the FDIC news release, the failed bank will be sold to Talmer Bank & Trust, Troy, Michigan.
Community Central Bank, Mount Clemens, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Talmer Bank & Trust, Troy, Michigan, formerly known as First Michigan Bank, to assume all of the deposits of Community Central Bank.
This evening and over the weekend, depositors of Community Central Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of December 31, 2010, Community Central Bank had approximately $476.3 million in total assets and $385.4 million in total deposits. Talmer Bank & Trust will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Community Central Bank. In addition to assuming all of the deposits of the failed bank, Talmer Bank & Trust agreed to purchase essentially all of the assets.
The FDIC and Talmer Bank & Trust entered into a loss-share transaction on $362.4 million of Community Central Bank’s assets. Talmer Bank & Trust 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.
Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-894-6992. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $183.2 million. Compared to other alternatives, Talmer Bank & Trust’s acquisition was the least costly resolution for the FDIC’s DIF. Community Central Bank is the 39th FDIC-insured institution to fail in the nation this year, and the second in Michigan. The last FDIC-insured institution closed in the state was Peoples State Bank, Hamtramck, on February 11, 2011.