FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS
OF Q BANK, FORT BENTON, MONTANA
FOR IMMEDIATE RELEASE PR-54-98 (8-7-98)
Media Contact: David Barr (202) 898-6992
The Federal Deposit Insurance Corporation (FDIC) has approved the assumption of the insured deposits of Q Bank, Fort Benton, Montana, by Heritage State Bank, Fort Benton, a newly chartered banking subsidiary of United Financial Corp., Great Falls, Montana.
Q Bank, with total assets of $15.1 million, was closed today by Montana’s Commissioner of Financial Institutions, and the FDIC was named receiver.
The failed bank had total deposits of about $13.6 million in approximately 2,100 accounts, including an estimated $1.3 million in 140 accounts that exceeded the federal deposit insurance limit of $100,000. The two former offices of Q Bank will reopen on Monday, August 10, as Heritage State Bank.
Heritage State Bank will assume the failed bank’s insured deposits. The FDIC will contact customers with uninsured deposits to inform them how to submit claims for their excess funds.
Heritage State Bank will pay a premium of $445,000 for the right to receive the failed bank’s insured deposits and will purchase $2.5 million of the failed bank’s assets. The receiver will retain the remaining assets for later disposition. The FDIC plans to market the loans of the failed bank from Fort Benton.
The FDIC estimates the cost of this transaction to the Bank Insurance Fund (BIF) will be approximately $1.3 million.
Q Bank is the third FDIC-insured bank failure in the U.S. this year and the first in Montana since First Security Bank of Anaconda was closed on March 16, 1992.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 10,779 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.