On Friday, the Michigan Office of Financial and Insurance Regulation closed Citizens State Bank, headquartered in New Baltimore, Michigan, and the FDIC was named as receiver. As receiver, the FDIC created the Deposit Insurance National Bank of New Baltimore (DINB), which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other banks. Immediately after taking over as receiver, the FDIC transferred all insured savings, checking and secured public units (except CDs and IRAs) of Citizens State Bank to the DINB. The FDIC entered into a contract with The Huntington National Bank to provide operational management of the DINB.

As of September 30, 2009, Citizens State Bank had total assets of $168.6 million and total deposits of $157.1 million. At closing, approximately $803,000 of deposits potentially exceeded the insurance limits. These uninsured deposits were not transferred to the DINB.

The FDIC estimates the cost to the Deposit Insurance Fund will be $76.6 million. Citizens State Bank is the 136th bank to fail in the nation this year and the 4th in Michigan.