Feds Shut Down People's State Bank

DETROIT (WWJ) - Government regulators have shut down People's State Bank, based in Hamtramck.

First Michigan Bank of Troy has agreed to acquire the assets and deposits of People's, which had 390.5 million dollars in assets at the close of the business day.

Branches of People's State Bank, which are in Farmington Hills, Fenton, Grosse Pointe Woods, Sterling Heights, Troy, and Warren, will reopen as First Michigan branches. There should be no impact on depositors.

Two customers using the drive thru in Hamtramck told WWJ's Stephanie Davis they were hearing about the change for the first time Saturday morning.  Davis said the sign on top of the bank still said People's.

The closure of People's is expected to cost the Federal Deposit Insurance Corporation 87.4 million dollars.

Customers with questions about their accounts with Peoples State Bank or about the transaction may call the FDIC toll-free at 800-450-5143. The phone number will be operational Saturday until 6:00 p.m. and Sunday from noon to 6:00 p.m.