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FDIC closes Hallock bank

HALLOCK -- United Valley Bank of Cavalier, N.D., has assumed all deposits of a Minnesota-based bank, the Federal Deposit Insurance Corp. said Friday in a press release.

The federal government on Friday closed Marshall Bank, National Association, which is based in Hallock. The three branches will reopen Monday as branches of United Valley Bank, and customers' deposits will automatically switch over and continue to be covered by deposit insurance.

Over the weekend, Marshall Bank customers can access their money by writing checks or using ATM or debit cards, and checks drawn on the bank will continue to be processed.

As of Sept. 30, the bank had about $59.9 million in total assets and $54.7 million in total deposits. United Valley Bank will pay a 7.35 percent premium to the FDIC to assume all deposits and also will purchase nearly all of the failed bank's assets.

The FDIC estimates the Deposit Insurance Fund's cost from this transaction will total $4.1 million, the "least costly" resolution compared to alternative solutions. It's the 12th FDIC-insured bank to fail this year alone, and the second in Minnesota.