Days after confirming its exit from the reverse mortgage business, Maumee, Ohio-based Resolute Bank has permanently ceased operating and its remaining customers have been migrated to another nearby banking organization.
An official statement of closure stands in place of the bank’s former website, referring existing customers to relevant information on the closure and any pre-existing accounts provided by the Federal Deposit Insurance Corporation (FDIC).
“Resolute Bank in Maumee, Ohio, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver,” reads an October 25 press release. “To protect depositors, the FDIC entered into a purchase and assumption agreement with Buckeye State Bank in Powell, Ohio, to assume all of the deposits of Resolute Bank.”
The remaining Resolute Bank branch is slated to reopen as a new branch of Buckeye State Bank, and previous Resolute account-holders have automatically become depositors at Buckeye State as of the moment of Resolute’s closure.
“Deposits will continue to be insured by the FDIC, so customers do not need to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits,” the FDIC press release reads. “Customers of Resolute Bank should continue to use their existing branch until they receive notice from Buckeye State Bank that it has completed systems changes to allow other Buckeye State Bank branches to process their accounts as well.”
The FDIC has estimated that the total cost to the Deposit Insurance Fund (DIF) resulting from Resolute’s closure would be around $2.2 million, and describes that the absorption of Resolute’s assets by Buckeye State Bank was the “least costly” remedy for the fund. Buckeye absorbed all of Resolute’s deposits, in addition to purchasing essentially all of Resolute’s remaining assets.
Resolute Bank is the third FDIC-insured institution to fail in the United States this year, according to the press release. When asked earlier this month about what motivated Resolute’s exit from originating reverse mortgages, Resolute Bank President Kevin Rahe told RMD that it arose out of a desire for Resolute to focus its business footprint on its own backyard, as opposed to focusing attention on the Nevada-based reverse mortgage business segment.
“We’re a small community bank in northwest Ohio,” Rahe told RMD in mid-October. “Our reverse mortgage division was centered in Henderson, Nev., and we’re really just trying to get back to our core business in northwest Ohio and southeast Michigan. Focusing on our footprint a lot more [is a top priority].”
Find more information about Resolute’s closure on its dedicated FDIC page.