Well, we may now understand why the Federal Deposit Insurance Corporation (FDIC) published that oddly-timed video a couple of weeks ago that discouraged depositors from withdrawing their money from the bank.
The Wuhan Coronavirus has claimed its first banking victim.
The FDIC announced on Friday that West Virginia’s First State Bank failed and its accounts were being taken over by MVB Bank.
According to the financial regulator, the bank was shut down on Friday by the state following “longstanding capital and asset quality issues.”
The books showed that the financial institution has operated with very little capital since the end of 2019 to legally stay open. The bank possessed a little more than $152 million in assets.
Here is a statement from the government agency:
“On Friday, April 3, 2020, The First State Bank was closed by the West Virginia Division of Financial Institutions. The FDIC was named Receiver. No advance notice is given to the public when a financial institution is closed. MVB Bank, Inc. (MVB Bank) of Fairmont, WV acquired all deposit accounts. All shares of stock were owned by the holding company, which was not involved in this transaction.”
First State Bank is the first bank to crumble during the COVID-19 era.
Who’s next?
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