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FRANKFORT, Ky. (AP) – Kentucky officials have taken possession of a Louisa bank after determining it was “critically undercapitalized.”
A release from Kentucky’s Department of Financial Institutions says the state agency along with the Federal Deposit Insurance Corporation have been closely monitoring Louisa Community Bank. It is the first FDIC-backed bank to fail in Kentucky since 2013.
Kentucky Farmers Bank of Catlettsburg has entered into a purchase and assumption agreement to take over the Louisa bank’s deposits.
The Louisa bank has been operating since 2006 and had nearly $30 million in total assets. The bank will reopen Saturday morning as Kentucky Farmers Bank and will resume normal business hours.
The FDIC and the state agency had earlier this year notified the bank that it had to raise capital or find an acquisition partner.