On April 10, 2009, the State Bank Commissioner of the Colorado Division of Banking closed New Frontier Bank, Greeley, Colorado, and the FDIC was named as receiver. Exercising its authority under the Federal Deposit Insurance Act, the FDIC created the Deposit Insurance National Bank of Greeley (DINB), to give customers the opportunity to move their accounts to other banks. At closing, the FDIC transferred all the insured deposits and secured public unit deposits of the failed to the DINB. Bank of the West, headquartered in San Francisco, California, entered into a contract with the FDIC to provide operational management of the DINB.

The FDIC reported that as of March 24, 2009, New Frontier had total assets of $2 billion and total deposits of $1.5 billion. At closing, there were approximately $150 million in insured deposits and $4 million in deposits that may exceed the insurance limit. Uninsured deposits were not transferred to the DINB. Brokered deposits, CD’s and IRA’s are not part of this transaction and the FDIC will pay the brokers directly for the amount of their insured funds. The FDIC will also retain all of the failed bank’s assets for later disposition.

The FDIC estimates the cost to the Deposit Insurance Fund will be $670 million. New Frontier Bank is the twenty-third bank to fail this year and the second in Colorado.