Weekend Economists Down Under May 23-26, 2014

[Demeter]

1. One of Our Banks is Missing!

Columbia Savings Bank, Cincinnati, Ohio, was closed today by the Ohio Division of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Fidelity Bank, fsb, Evansville, Indiana, to assume all of the deposits of Columbia Savings Bank.

The sole branch of Columbia Savings Bank will reopen as a branch of United Fidelity Bank, fsb during their normal business hours...As of March 31, 2014, Columbia Savings Bank had approximately $36.5 million in total assets and $29.5 million in total deposits. In addition to assuming all of the deposits of the Columbia Savings Bank, United Fidelity Bank, fsb agreed to purchase essentially all of the failed bank's assets....

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.3 million. Compared to other alternatives, United Fidelity Bank, fsb's acquisition was the least costly resolution for the FDIC's DIF. Columbia Savings Bank is the eighth FDIC-insured institution to fail in the nation this year, and the first in Ohio. The last FDIC-insured institution closed in the state was Bramble Savings Bank, Milford, on September 17, 2010.