The First State Bank, based in Barboursville, W.Va., was closed by state regulators April 3. The FDIC, which was appointed receiver, has entered into a purchase and assumption agreement with MVB Bank, Inc., of Fairmont, W.Va. to assume all of the failed bank’s deposits.
This is the first bank failure of the “coronavirus era.”
According to the FDIC, the First State Bank had “experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015.”
The bank’s year-end financial reports indicated capital levels were too low to allow continued operations under applicable laws.
As of Dec. 31, 2019, the First State Bank had approximately $152.4 million in total assets and $139.5 million in total deposits. In addition to assuming all of the deposits, MVB Bank agreed to purchase approximately $147.2 million of The First State Bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $46.8 million.
First State Bank’s four branch offices will reopen on Saturday, April 4 as branches of MVB Bank.