FDIC announces first bank failure of coronavirus crisis

[yaesu]

WSJ: A small bank in West Virginia has become the first institution to fail during the coronavirus crisis, the Federal Deposit Insurance Corp. announced Friday. The First State Bank of Barboursville with $152 million in total assets was closed Friday by the West Virginia Division of Financial Institutions. The bank's $139.5 million in deposits will be acquired by MVB Bank Inc. of Fairmont, W.Va. The four branches of The First State Bank will reopen as branches of MVB Bank on Saturday, the FDIC said

[SheltieLover]

1. Yup

Saw this earlier today. I guess they weren' "too big to fail."

[FBaggins]

2. Bad title... it's unrelated to the crisis

They’ve reportedly had trouble for years and failed minimum capital level months ago.

[yaesu]

3. well, its underlying conditions, just like people, so maybe we shouldn't count people who have

underlying conditions that die of being exposed.

[FBaggins]

4. I would consider that reasonable in some cases

But in this case the bank was dead at the end of the 4th quarter. It just took until now to process the paperwork.

This is actually the 6th bank to fail in the last year. There will no doubt be some put under by the crisis (though banks are on much firmer footing in recent years)... but this isn’t one of them.