The Utah Department of Financial Institutions Takes Possession of Proficio Bank

The Utah Department of Financial Institutions Takes Possession of Proficio Bank

Salt Lake City B Commissioner G. Edward Leary announced that he took possession of Proficio Bank, a state-chartered commercial bank headquartered in Cottonwood Heights, Utah, today, and immediately appointed the Federal Deposit Insurance Corporation (AFDIC@) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Cache Valley Bank, Logan, Utah, to assume all of the deposits of Proficio Bank.

The Commissioner took possession of Proficio Bank in order to protect depositors and the public, finding, among other things, that the Bank was illiquid and insolvent and not in a safe or sound condition to transact business. The Department of Financial Institutions, as well as the FDIC, have been closely monitoring the Bank and had ordered it to increase its liquidity and capital to a safe and sound level. Efforts by Proficio Bank to raise liquidity and capital were unsuccessful.

On Monday, Proficio Bank will reopen as a branch of Cache Valley Bank during its normal business hours. Depositors of Proficio Bank will automatically become depositors of Cache Valley Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage up to applicable limits. Customers of Proficio Bank should continue to use their existing office until they receive notice from Cache Valley Bank that it has completed systems changes to allow other Cache Valley Bank branches to process their accounts, as well.

This evening and over the weekend, depositors of Proficio Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Proficio Bank was chartered on January 6, 2007, with its headquarters located at 6985 So Union Park Ctr, Suite 150, Cottonwood Heights. The Bank primarily funded commercial relocation loans and SBA loans. As of February 27, 2017, Proficio Bank had total assets of approximately $64 million and total deposits of approximately $58 million. There are no public funds.

Proficio Bank is the first bank failure in Utah since SunFirst Bank failed on November 4, 2011.