Federal regulators had been pushing Village Bank to either find more investment capital or sell to another financial institution. The FDIC issued a corrective action order last year to Village Bank, whose capital margin against loan losses were deteriorating as a result of the down turn of real estate market in southern Utah.
Details of the assets and liabilities acquired by Cache Valley Bank with the three Village Bank branches were not disclosed.
Village Bank President Doug Bringhurst said the bank will will continue to operate independently and serve its customer banking needs at the main location, 294 East Tabernacle in St George.
The announcement Wednesday comes after Cache Valley Bank's application to the Federal Deposit Insurance Corporation (FDIC) filed in March was approved. Legal Notice
Village Bank customers do not have the use of the three branch locations to service your Village Bank accounts effective Thursday, according to the bank's website. However, the bank's online banking, TelExpress and Tabernacle office is available for customer convenience.
For further information, go to Village Bank Customer Announcement
Cache Valley Bank of Logan, Utah, assumed most of the deposits of SunFirst Bank and purchase approximately $177.3 million of its assets on November 4, 2011.
In the transaction the FDIC retained approximately $15 million in deposits that were subject to litigation involving SunFirst Bank. The federal agency also withheld $20.8 million of the failed institution’s assets for later disposition.