FIs closed: Peoples State Bank, Hamtramck, Michigan, USA
On Friday, 11 February, 2011, Peoples State Bank, Hamtramck, Michigan was closed by the Michigan Office of Financial and Insurance Regulation and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Michigan Bank, Troy, Michigan, to assume all of the deposits of Peoples State Bank.
The ten branches of Peoples State Bank reopened on Saturday as branches of First Michigan Bank. Depositors of Peoples State Bank will automatically become depositors of First Michigan Bank.
As of 31 December, 2010, Peoples State Bank had approximately USD390.5 million in total assets and USD389.9 million in total deposits.
First Michigan Bank will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Peoples State Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USd87.4 million.
Peoples State Bank is the sixteenth FDIC-insured institution to fail in the USA this year and the first in Michigan.
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