Farmington Hills-based Paramount Bank has been shutdown.
The Michigan Office of Financial and Insurance Regulation Friday announced that Level One Bank has acquired all the deposits and the majority of the assets of Paramount Bank which had bank branches in Farmington Hills, Clinton Township, Birmingham and Ferndale. The bank opened in February 1998.
“This deal fully protects Paramount’s depositors and it allows customers to continue conducting their financial affairs as usual,” Insurance Commissioner Ken Ross said in a statement. “Most Michigan banks remain strong despite a challenging economic environment.”
Paramount Bank’s offices will be open for business as usual on Monday as branches of Level One Bank.
This weekend Paramount customers will be able to access their money by writing checks or using their ATM or debit cards. Checks drawn on Paramount Bank will continue to be processed. Loan customers should continue to make their payments as usual.
At the end of September Paramount Bank had $252.7 million in total assets, $213.6 million in deposits, and net loans amounting to $217.1 million.
The statement from the state said Level One will not assume approximately $19 million of brokered deposits held by Paramount Bank. These funds will be paid by the Federal Deposit Insurance Corporation (FDIC) to the broker of the funds. Customers who placed their deposits through brokers should contact their brokers about the status of their deposits.
Customers with questions about their accounts with Paramount Bank or about the change may call the FDIC toll-free at 800-881-7816. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m., ET; on Sunday from noon to 6:00 p.m., ET; and thereafter from 8:00 a.m. to 8:00 p.m.