FDIC uses Internet to handle year's first bank failure

Northwestern Financial Review, Mar 1, 2001

First Alliance Bank & Trust Company of Manchester, N.H., became the first bank in the country to fail in 2001, when the state's banking commissioner closed it on Feb. 2. The $18.4 million bank was taken over by Southern New Hampshire Bank & Trust Company of Salem, N.H. The failed bank opened Feb. 5 as a branch of the acquiring bank.

Southern New Hampshire Bank & Trust paid the FDIC $150,000 to acquire $17.5 million in 1,100 deposit accounts and $17.1 million of the failed bank's loans. The failure will cost the Bank Insurance Fund $119,000. For the first time, the FDIC used the Internet to solicit bids for the failed bank's assets.