Regulators shutter banks in Kentucky and Ohio
Regulators have closed banks in Kentucky and Ohio.
Louisa Community Bank in Louisa, Ky., was shuttered by the Kentucky Department of Financial Institutions, which appointed the Federal Deposit Insurance Corp. as receiver and sold the bank's insured deposits, and essentially all of its assets, to Kentucky Farmers Bank in Catlettsburg.
Louisa Community had about $29.7 million in assets and $26.5 million in deposits. The bank's sole branch will reopen Saturday as Kentucky Farmers.
The FDIC estimates that Louisa Community's failure will cost the Deposit Insurance Fund about $4.5 million.
The Office of the Comptroller of the Currency closed Resolute Bank in Maumee, Ohio, before appointing the FDIC as receiver. Resolute's deposits, and essentially all of its assets, were sold to Buckyeye State Bank in Powell, Ohio.
The OCC said in a press release that it intervened after finding that Resolute "had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices."
Resolute had $27.1 million in assets and $26.2 million in deposits. Its branch will reopen as Buckeye State.
The FDIC estimates that Resolute's failure will cost the Deposit Insurance Fund $2.2 million
The failures raise the total for 2019 to three banks. There were no failures last year. It is the first time since 2015 that two banks have failed on the same day.
Louisa Community was the first bank to fail since regulators closed Enloe State Bank in Cooper, Texas, on May 31. The last FDIC-insured Kentucky institution to close was First Federal Bank in Lexington in 2013. The previous FDIC-insured institution to fail in Ohio was Columbia Savings Bank in 2014.