Press Releases Coulee Bank, La Crosse, Wisconsin, Assumes All of the Deposits of Pinehurst Bank, St. Paul, Minnesota
FOR IMMEDIATE RELEASE
May 21, 2010
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Pinehurst Bank, St. Paul, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Coulee Bank, La Crosse, Wisconsin, to assume all of the deposits of Pinehurst Bank.
The sole branch of Pinehurst Bank will reopen on Saturday as a branch of Coulee Bank. Depositors of Pinehurst Bank will automatically become depositors of Coulee Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of Pinehurst Bank should continue to use their existing branch until they receive notice from Coulee Bank that it has completed systems changes to allow other Coulee Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Pinehurst Bank can access their money 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 March 31, 2010, Pinehurst Bank had approximately $61.2 million in total assets and $58.3 million in total deposits. Coulee Bank will pay the FDIC a premium of 1.33 percent to assume all of the deposits of Pinehurst Bank. In addition to assuming all of the deposits of the failed bank, Coulee Bank agreed to purchase essentially all of the assets.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-894-5183. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit
the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/pinehurstmn.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.0 million. Coulee Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Pinehurst Bank is the 73rd FDIC-insured institution to fail in the nation this year, and the sixth in Minnesota. The last FDIC-insured institution closed in the state was Access Bank, Champlin, on May 7, 2010.
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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 7,932 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. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-118-2010