Today, the Michigan Office of Financial and Insurance Regulation closed Warren Bank, headquartered in Warren, Michigan, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with The Huntington National Bank, headquartered in Columbus, Ohio, to assume all of the deposits of Warren Bank for a 0.27% premium.

The FDIC reported that as of July 31, 2009, Warren Bank had total assets of $538 million and total deposits of approximately $501 million. The Huntington National Bank will also purchase approximately $83 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $275 million. Warren Bank is the 96th bank to fail in the nation this year, and the 2nd in Michigan.