West Virginia Bank the First to Fail Since COVID-19 Declared a Pandemic

Today the FDIC announced that The First State Bank in Barboursville, West Virginia, was closed by the West Virginia Division of Financial Institutions.

April 3, 2020 -- Today the Federal Deposit Insurance Corporation (FDIC) announced that The First State Bank in Barboursville, West Virginia, was closed by the West Virginia Division of Financial Institutions.

MVB Bank, Inc. (MVB Bank) of Fairmont, West Virginia, acquired all deposit accounts, and the four branches of The First State Bank are slated to reopen as branches of MVB Bank tomorrow.

According to the FDIC’s press release, “The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015. The bank’s December 31, 2019 financial reports indicated capital levels were too low to allow continued operations under federal and state law.”

It’s the first bank closure since the World Health Organization declared coronavirus COVID-19 a pandemic on March 11, and the second U.S. bank failure this year, following Nebraska’s Ericson State Bank, which failed on February 14.

Four U.S. banks failed in 2019; none failed in 2018.