A small bank in Utah has been shut down by regulators. The latest depository failure puts the nation on track to exceed the total for all of last year.
On Friday, the
Utah Department of Financial Institutions seized control of Proficio Bank, a 16-year-old organization in Cottonwood Heights.
Proficio’s staff finished 2015 at 75 employees. But by the end of the following year, the bank had dramatically scaled back its payroll to just 11 people.
Total deposits concluded 2016 at $65 million, while assets were $68 million — including $4 million in residential loans and $34 million in commercial real estate loans.
The Federal Deposit Insurance Corp. was named conservator of the failed entity.
Following a secret bidding process,
an agreement was reached with Cache Valley Bank to assume all of Proficio’s deposits and purchase $60 million of its assets.
Estimated costs to the FDIC’s Deposit Insurance Fund are expected to reach $11 million as a result of the bank failure.
Proficio was the third bank to go down so far this year — putting bank failures on track to exceed the six reported for all of last year.
Mortgage Daily has tracked the closing or failure of
five mortgage-related entities so far in 2017.
