DEARBORN — Fidelity Bank was closed Friday by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation as receiver. The bank’s 15 branches were to reopen Saturday as branches of The Huntington National Bank.
To protect Fidelity depositors, the FDIC entered into a purchase and assumption agreement with Huntington Bank — based in Columbus, Ohio — to assume all of the deposits of Fidelity, according to a press release issued by the FDIC.
Deposits will continue to be insured by the FDIC, so customers to do not need change their banking relationship in order to retain their deposit insurance coverage up to applicable limits, the release read. Fidelity customers should continue to use their existing branch until they receive notice from Huntington that it has completed systems changes to allow other Huntington branches to process their accounts as well.
Fidelity depositors should be able to access their money over the weekend by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of Dec. 31, 2011, Fidelity Bank had approximately $818.2 million in total assets and $747.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Huntington agreed to purchase essentially all of the assets.
Customers with questions about Friday’s transaction should call the FDIC at 800-523-8177. The phone number will be operational from 9 a.m. to 6 p.m. Saturday, noon to 6 p.m. Sunday, 8 a.m. to 8 p.m. Monday, and 9 a.m. to 5 p.m. thereafter. Interested parties also can go to the FDIC’s website, http://www.fdic.gov/bank/individual/failed/fidelity.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $92.8 million. Compared to other alternatives, Huntington’s acquisition was the least costly resolution for the FDIC’s DIF.
Fidelity Bank is the 16th FDIC-insured institution to fail in the nation this year, and the first in Michigan. The last FDIC-insured institution closed in the state was Community Central Bank, Mount Clemens, on April 29, 2011.