Two institutions insured by the Federal Deposit Insurance Corp. (FDIC) were closed Friday. Farmington Hills, Mich.-based Paramount Bank was closed by the Michigan Office of Financial and Insurance Regulation, and Southampton, Pa.-based Earthstar Bank was closed by the Secretary of Banking of the Commonwealth of Pennsylvania.
The FDIC entered into a purchase-and-assumption agreement with Level One Bank, also in Farmington Hills, to assume all of the deposits of Paramount Bank. As of the end of September, Paramount Bank had approximately $252.7 million in total assets and $213.6 million in total deposits. The FDIC and Level One Bank entered into a loss-share transaction on $233.1 million of Paramount Bank's assets.
Polonia Bank of Huntingdon Valley, Pa., has agreed to assume all of the deposits of Earthstar Bank, except for certain out-of-state certificates of deposit. Earthstar Bank had approximately $112.6 million in total assets and $104.5 million in total deposits at the end of September. The FDIC, which will retain most of the assets for later disposition, entered into a loss-share transaction with Polonia Bank on $45.8 million of Earthstar Bank's assets.