Ericson State Bank in Ericson, Neb., was closed by the Nebraska Department of Banking and Finance. The $100 million bank is the first FDIC-insured institution to fail this year.
The FDIC entered into a purchase and assumption agreement with Farmers and Merchants Bank, Milford, Neb. The sole branch of Ericson State Bank will reopen as a branch of the $118.5 million bank on Feb. 18., and its depositors will automatically become depositors of Farmers and Merchants Bank.
As of Dec. 31, 2019, Ericson State Bank had approximately $100.9 million in total assets and $95.2 million in total deposits. In addition to assuming all of the deposits, Farmers and Merchants agreed to purchase approximately $9.6 million of Ericson State Bank’s assets.
The FDIC estimated that the cost to the Deposit Insurance Fund will be $14.1 million.