State closes north-central Nebraska bank for insolvency

(Pixabay, License Link)

ERICSON, Neb. (AP) -- State banking officials have closed Ericson State Bank in north-central Nebraska, declaring it insolvent.

The Nebraska Department of Banking and Finance announced the closure in a news release Friday night, saying it had named the Federal Deposit Insurance Corporation as receiver of the bank.

To protect depositors, the FDIC entered into a purchase and assumption agreement with Farmers and Merchants Bank in Milford to assume all of the deposits of Ericson State Bank.

The release says the Ericson bank will be open for business Tuesday under the name Farmers and Merchants Bank.