After a hiatus of two months the sixth banking failure of 2015 occurred today when regulators closed Premier Bank, Denver, CO. The last banking failure occurred on May 8th when Edgebrook Bank, Chicago, IL, was closed.
After being shut down by the Colorado Division of Banking, the FDIC was appointed as receiver and sold the failed bank to United Fidelity Bank, fsb, Evansville, Indiana, which will assume all deposits of Premier Bank.
All depositors of Premier Bank will automatically become depositors of United Fidelity Bank with full FDIC deposit insurance coverage maintained up to the applicable limits.
Over the weekend depositors of Premier Bank will be able to access their funds through the use of ATM, debit cards, and checks which will continue to processed.
Premier Bank was a small two branch bank which had the misfortune of opening in December 1995 shortly before the financial and banking crisis. At March 31, 2015, Premier Bank had total assets of $31.7 million and total deposits of $29.6 million. According to the Bank’s website “Premier Bank is growing and continuing to reach out to our business and international communities.”
Virtually all of Premier Bank’s assets were purchased by United Fidelity Bank.
The loss to the FDIC Deposit Insurance Fund is estimated at $4.4 million. As is the custom of the FDIC, failed banks are routinely sold to healthier banks since this is the least costly method of resolution. Premier Bank is the sixth bank to failure this year and the first in Colorado.