No, wait – that’s 3 bank failures in 2019, the latest to cost $2.2 million

About an hour after announcing the second insured-bank failure of 2019, the federal insurer of bank deposits announced a third failure – that of Resolute Bank in Maumee, Ohio, which was closed Friday by the Office of the Comptroller of the Currency (OCC).

The OCC named the Federal Deposit Insurance Corp. (FDIC) as receiver, the agency said in its release Friday. The sole branch of Resolute Bank will reopen as a branch of Buckeye State Bank during normal business hours, the FDIC said. The agency currently estimates that the failure of the $27.1 million-assets Resolute Bank will cost the Deposit Insurance Fund (DIF) $2.2 million.

Resolute Bank was controlled by three holding companies in New Jersey and was the subject of enforcement orders last year by the OCC and this April by the Federal Reserve Board. The latter order, entered into by consent with the Federal Reserve Bank of Philadelphia, required the firms to take steps to serve as a source of strength for the federal savings bank, including steps to ensure the bank complied with a previous OCC order.

The FDIC said Friday that as of June 30, Resolute Bank had approximately $27.1 million in total assets and $26.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Buckeye State Bank agreed to purchase essentially all of the assets.

The agency announced the closure of Resolute Bank just about an hour after it announced the closure of another relatively small bank: Louisa Community Bank of Louisa, Ky., the second federally insured bank to fail this year.

Buckeye State Bank Assumes All of the Deposits of Resolute Bank

RR: 2nd bank in 2019 fails – this one in Kentucky — at cost of $4.5 million (Oct. 25, 2019)

RR: NJ holding companies in control of OH bank ordered to strengthen internal controls, more (April 16, 2019)