It was recently announced that United Valley Bank will pay the Federal Deposit Insure Corporation (FDIC) a premium of 7.35% to assume all deposits of Marshall Bank, National Association after the Hallock, MN institution failed in late January.
United Valley Bank signed an agreement to purchase essentially all of the failed bank’s assets, and the 3 branches of Marshall Bank, N.A. will be opening as branches of United Valley Bank.
The institution carried capital adequacy and leverage ratios under 6%, however, Marshall Bank was hampered by construction lending, with approximately 58% of their portfolio noncurrent. The FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $4.1 million. Marshall Bank, National Association is the second institution in Minnesota to fail during 2010.