The FDIC took over the First State Bank, based in Barboursville, West Virginia, Friday evening, the first time since Feb. 14 that the agency has had to take over a bank.
During the financial crisis of 2008 and 2009, Friday evening announcements of bank failures by the FDIC were a standard occurrence, as 25 banks failed in 2008 and another 140 in 2009. But while this is the first bank failure since the start of the coronavirus crisis in the United States, the agency said the problems at the bank occurred far before the current crisis.
“The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015. The bank's December 31, 2019 financial reports indicated capital levels were too low to allow continued operations under federal and state law,” said the agency statement.
The agency has arranged a purchase of the bank and its deposits by MVB Bank of Fairmont, West Virigina. The four branches of First State Bank will reopen as MVB branches on Saturday. But due to the state’s stay-at-home order, customers are advised to visit the bank only if an in-person visit is essential and they first make an appointment.
The only other bank failure this year was Ericson State Bank in Ericson, Nebraska.