Loading ...Problems at Horizon Force County to Switch Banks
Last Month, the Federal Deposit Insurance Corp. (FDIC) named the Horizon Bank in Pine City for engaging in “unsafe or unsound business practices.”
Because of the bank’s recent trouble, Pine County decided to move its checking account from Horizon to Rural American Bank in Pine City. Pine County Interim Coordinator Mark LeBrun says Horizon is not able to provide enough collateral during certain “peak” times. LeBrun says “peak” times include when property taxes come in to the county around the middle to end of May. He adds that this amount is around $10 million.
LeBrun says the reason for choosing Rural American Bank was based on the bank offereing the lowest fees, best interest rate and the county has worked with the bank in the past.
The order finds Horizon was “operating with inadequate capitol and an inadequate allowance for loans and leases held,” “operating with inadequate liquidity in light of the Bank’s assets and liquidity mix,” and “operating with an excessive level of adversely classified loans or assets. ” The findings are based on a January investigation.
FDIC: Horizon Bank “Unsafe or Unsound”