Two financial institutions, one with more than $800 million in assets and another with less than $1 million in assets, were seized by regulators. One was liquidated, and the other was acquired.
The Michigan Office of Financial and Insurance Regulation said Friday that it closed Fidelity Bank. A petition was approved by the Ingham County Circuit Court to appoint the Federal Deposit Insurance Corp. as receiver.
The bank was founded in February 1994. It had around 184 employees at the time of its demise. Residential loan holdings were $81.2 million as of the end of last year, while commercial mortgages on the books were $517 million and construction-and-land-development assets stood at $40 million.
The Dearborn, Mich.-based institution was owned and operated by Dearborn Bancorp. Inc. Total deposits stood at $748 million, while total assets were $818 million.
It was hit with an FDIC cease-and-desist order in February 2010 and a supervisory prompt corrective action directive in September 2011.
The Huntington National Bank agreed to assume all deposits and acquire all assets of the failed bank.
Nearly $93 million in losses are expected for the Deposit Insurance Fund as a result of Fidelity’s failure, the 16th FDIC-insured bank failure so far in 2012.
Last Monday, the National Credit Union Administration liquidated Shepherd’s Federal Credit Union.
The NCUA’s decision came after it determined that the Charlotte, N.C., credit union was insolvent with no hope of recovery.
The two-year-old financial institution had less than $0.4 million in assets and just 1,397 members, which included members and employees of the Unity, the Way of Holiness Christian Church.
Including Shepard’s, Mortgage Daily has tracked the demise of seven credit unions so far this year. In all, 27 mortgage-related businesses have closed down during 2012.
