Columbia Savings Bank of Cincinnati, Ohio was closed by the Ohio Division of Financial Institutions, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with United Fidelity Bank of Evansville, Indiana to assume the failed bank's deposits.
The sole branch of Columbia Savings Bank will reopen as a branch of United Fidelity during normal business hours. Depositors of Columbia Savings will automatically become depositors of United Fidelity Bank, and their deposits will continue to be FDIC-insured.
The FDIC commented, "Customers of Columbia Savings Bank should continue to use their current branch until they receive notice from United Fidelity Bank, fsb that systems conversions have been completed to allow full-service banking at all branches of United Fidelity Bank, fsb."
As of March 31, 2014, Columbia Savings Bank had roughly $36.5 million in total assets and $29.5 million in total deposits. In addition to all of its deposits, United Fidelity Bank has agreed to purchase all of the failed bank's assets.
The FDIC estimated that the cost to the Deposit Insurance Fund (DIF) will be $3.5 million. Compared to other alternatives to resolve the bank's failure, United Fidelity Bank's acquisition was the least costly resolution for the DIF.
Columbia Savings Bank is the eighth FDIC-insured institution to fail this year, and the first in Ohio. The last bank to fail in the state was Bramble Savings Bank in Milford, Ohio on September 17, 2010.