Insurer to terminate receiverships of four closed banks

Receiverships for four former banks will be terminated, including one that began nearly nine years ago, according to filings by the federal deposit insurer and scheduled to be published Tuesday.

According to the filings by the Federal Deposit Insurance Corp. (FDIC) with the Federal Register, the agency will terminate receiverships for:

  • Peoples Community Bank of West Chester, Ohio; placed into receivership July 31, 2009. The bank was closed by the former Office of Thrift Supervision (OTS), which named the FDIC as receiver. At the time of its receivership, the bank had 19 branches and total assets of approximately $705.8 million, according to the FDIC.
  • First Lowndes Bank of Fort Deposit, Ala.; placed into receivership March 19, 2010. The bank was closed by the Alabama Banking Department, which named FDIC receiver. At that time, the bank had four branches and approximately $137.2 million in assets, the FDIC said.
  • Home Valley Bank of Cave Junction, Ore.; placed into receivership July 23, 2010. The bank was closed by the Oregon Department of Consumer and Business Services, which named the FDIC receiver. When the bank was closed, it had five branches and about $252.8 million in assets, according to the FDIC.
  • First Cornerstone Bank of King of Prussia, Pa.; placed into conservatorship May 6, 2016. The bank was closed by the Pennsylvania Department of Banking and Securities, which named the FDIC the receiver. When it was closed, First Cornerstone had six branches and approximately $103.3 million in assets.

“The liquidation of the assets for each receivership has been completed,” FDIC said in its filing. “To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors.

“Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of this notice.”

FDIC Notice to All Interested Parties of Intent to Terminate Receiverships