KPTM FOX 42: Omaha News, Sports and Weather; kptm.com |State Closes Mid-City Bank

OMAHA (KPTM) - A local Omaha bank is the latest US bank to be shut down this year.

The Nebraska Department of Banking and Finance closed Mid City Bank Friday evening, but officials say it will reopen under a new name with another bank.

In a statement released Friday night, the agency says the Federal Deposit Insurance Corporation was named receiver. The FDIC entered into an agreement with Purdum State Bank in Purdum, Neb., which will change its name to Premier Bank.

The agreement includes assumption of all customer deposits, and offices of the bank will be open on Saturday under the new name.

Regulators say the failure of Mid City Bank resulted primarily from commercial real estate loan losses and poor management that led to a deterioration of capital.

Mid-City is the 86th bank failure this year.

Customers with questions about today's transaction should call the FDIC toll-free at 1-800-356-1848.  The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., Central Standard Time (CST); on Monday from 8:00 a.m. to 8:00 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST. 

Interested parties may also visit the FDIC website http://www.fdic.gov/bank/individual/failed/midcity.html.

There is also a link for "Frequently Asked Questions."

Statistical data about the bank may be found at http://www2.fdic.gov/idasp/main.asp and a copy of a 2009 regulatory action against the bank is at http://www.fdic.gov/bank/individual/enforcement/2009-11-24.pdf.