TheStreet.com Ratings had assigned Michigan Heritage Bank an E-minus (Very Weak) financial strength rating in December, a downgrade from an E rating assigned in September. The institution's capital was wiped out because of loan charge-offs across its diversified portfolio. The FDIC sold Michigan Heritage's retail deposits to Level One Bank, and the failed bank's three offices were set to reopen as Level One branches on Monday. Once again, brokered deposits were not acquired, and were to be paid directly to brokers. Level One Bank took on $46 million of the failed bank's assets, with the FDIC retaining the rest for later disposition. The agency estimated the cost to its insurance fund would be $71.3 million.