Regulators shuttered Resolute Bank, Maumee, Ohio, after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices, according to a press release by the Office of the Comptroller of the Currency.
The sole branch of Resolute bank will reopen as a branch of Buckeye State Bank, Powell, Ohio. As of June, the failed bank had $27.1 million in assets and $26.2 million in deposits. The cost of the failure is estimated to be $2.2 million to the Deposit Insurance Fund.
“As we continue to grow and expand, the opportunity to serve the clients of Resolute and the local market of Maumee and northwest Ohio is a tremendous step in our journey,” said Shawn Keller, president and CEO of the $111 million Buckeye State. “We are also excited about adding the experienced bankers at Resolute Bank to the Buckeye State Bank team.”
This is the third FDIC-insured institution to fail this year. The second was a step south at Louisa Community Bank, Louisa, Ky., which closed earlier in the morning on the same day.
The FDIC hasn’t closed an institution in Ohio since 2014. In a press release, the FDIC said the overall health of the banking system remains strong, and that roughly five banks go out of business each year. There have been only three years since 1933 without a single bank failure according to its data.