April 22 - First Federal Bank, Lexington, Ky., was closed today by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Your Community Bank, New Albany, Ind., to assume all of the deposits of First Federal Bank.
As of Dec. 31, 2012, First Federal Bank had approximately $100.1 million in total assets and $93.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, Your Community Bank agreed to purchase essentially all of the assets.
Customers with questions about the transaction should call the FDIC toll-free at 800-355-0650. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/firstfederal-ky.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $9.7 million. Compared to other alternatives, Your Community Bank's acquisition was the least costly resolution for the FDIC's DIF. First Federal Bank is the sixth FDIC-insured institution to fail in the nation this year, and the first in Kentucky. The last FDIC-insured institution closed in the state was Irwin Union Bank, FSB, Louisville, on Sept. 18, 2009.