Fidelity Bank seized and sold to Huntington Bank
Dearborn’s Fidelity Bank was seized and sold by state and federal regulators this evening — Michigan’s first bank failure of the year.
The bank’s 15 branches will be operated by Huntington National Bank of Columbus, Ohio, which has been on a big push to expand in Southeast Michigan. Huntington agreed to assume Fidelity Bank’s deposits and buy essentially all of its assets, according to the Federal Deposit Insurance Corp.
“Under this agreement, Fidelity’s customers will have uninterrupted access to their accounts and experience a seamless transition to Huntington Bank,” said Kevin Clinton, commissioner of the Michigan Office of Financial and Insurance Regulation.
The seizure was initiated by the Office of Financial Regulation, which appointed the FDIC as receiver. On March 21, the bank had filed a report with the Securities and Exchange Commission, stating that it was considered “critically undercapitalized” by regulators and ordered to add a minimum of $26 millionto its reserves…..read more