The Federal Deposit Insurance Corporation (FDIC) announced Friday in a press release the closing of Millennium Bank, National Association of Sterling, Virginia. The bank was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as the bank’s receiver.
To protect depositors, the FDIC entered into a purchase and assumption agreement with WashingtonFirst Bank of Reston, Virginia. WashingtonFirst will assume all of the deposits of the recently closed Millennium Bank.
The two branches of Millennium Bank, N.A. will reopen as branches of WashingtonFirst Bank during normal business hours.
According to the release, “As of December 31, 2013, Millennium Bank, N.A. had approximately $130.3 million in total assets and $121.7 million in total deposits.”
WashingtonFirst Bank will pay the FDIC a premium of one percent to assume the closed bank’s deposits, and “agreed to purchase essentially all of the failed bank’s assets,” according to the FDIC press release.
The release commented, “The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.7 million. Compared to other alternatives, WashingtonFirst Bank’s acquisition was the least costly resolution for the FDIC’s DIF.”
Millennium Bank, N.A. is the fourth FDIC-insured institution this year, after Syringa Bank was shuttered earlier in the year. The bank’s closing was the first in Virginia this year, and the latest closed in the state since Bank of the Commonwealth, Norfolk, was closed on September 23, 2011.
Depositors of Millennium Bank can continue to access their money through checks, or local ATMs. Checks drawn will continue to be processed, and loan customers should make payments as usual.