Regulators Shut Two Banks; Bank Closures Reach 5 In 2014

(RTTNews) - Federal Deposit Insurance Corporation or FDIC announced Friday that Pennsylvania Department of Banking and Securities as well as Office of the Comptroller of the Currency closed Vantage Point Bank and Millennium Bank (MBVA) respectively.

Meanwhile, FDIC signed a purchase and assumption agreement with First Choice Bank to assume all of the deposits of the Vantage Point Bank. As of December 31, 2013, Vantage Point Bank had approximately $63.5 million in total assets and $62.5 million in total deposits and FDIC forecasts that the cost to the Deposit Insurance Fund will be $8.5 million.

First Choice Bank will pay the FDIC a premium of 1.5 percent to assume all of the deposits of Vantage Point Bank. Additionally, First Choice Bank agreed to purchase essentially all of the failed bank's assets.

Further, FDIC agreed with WashingtonFirst Bank to assume all of the deposits Millennium Bank. Millennium Bank had approximately $130.3 million in total assets and $121.7 million in total deposits, as of December 31, 2013. FDIC estimates that the cost to the Deposit Insurance Fund will be $7.7 million.

WashingtonFirst Bank as well is liable to pay the FDIC a premium of 1.00 percent to assume all of the deposits of Millennium Bank. In addition to assuming all of the deposits of the Millennium Bank, it agreed to purchase essentially all of the failed bank's assets.