Today, the Utah Department of Financial Institutions closed MagnetBank, Salt Lake City, Utah , and the FDIC was named as receiver. The FDIC was unable to find another financial institution to assume the banking operations of MagnetBank. As a result, the FDIC will mail checks to retail depositors for their insured funds and brokered deposits will be wired to brokers upon FDIC determination as to whether any of their clients exceed the insurance limits.
As of December 2, 2008, MagnetBank had total assets of $292.9 million and total deposits of $282.8 million. The FDIC estimates that the failed bank did not have any uninsured funds.
MagnetBank is the fourth FDIC insured institution to fail this year and the first in Utah since Bank of Ephraim on June 25, 2004.