Ohio Bank Fails

Less than a week after the failure of NetBank, federal regulators on Thursday announced the failure of an Ohio institution that also leaves some large depositors in limbo.

The Ohio Superintendent of Financial Institutions and the Federal Deposit Insurance Corp. announced the $86.7 million Miami Valley Bank's closing and the transfer of its insured deposits to The Citizens Banking Co., of Sandusky, Ohio. TheStreet.com Ratings provided advance notice of Miami Valley Bank's weak condition, as its rating was downgraded to an E- (very weak financial strength) in June 2007.

As with last week's failure of NetBank (which is formerly a unit of NetBank Inc.(NTBK Quote)), Miami Valley customers with deposits exceeding FDIC insurance limits are on the hook. At the time it was closed down, Miami Valley Bank had about $14 million in uninsured deposits in 269 accounts. ...