Salt Lake City-based Marlin Business Bank on Dec. 30, 2021, completed the transfer of its portfolio of brokered certificates of deposit held through The Depository Trust Co. to a Federal Deposit Insurance Corp.-insured depository institution.
The bank transferred the portfolio of brokered certificates of deposit pursuant to a previously disclosed deposit assignment and assumption agreement entered into Oct. 8, 2021. The deposits subject to the transfer constituted all of Marlin Business Bank's then-remaining deposit liabilities, such that immediately upon giving effect to the transfer, the bank no longer held any deposits.
On Jan. 3, Marlin Business Bank formally surrendered its banking charter to the Utah Department of Financial Institutions, requesting that such surrender be effective upon close of business Jan. 7, and submitted to the FDIC a certification of the assumption of all the bank's deposit liabilities pursuant to Federal Deposit Insurance Act.
Immediately following the anticipated receipt on or about Jan. 7 of the Utah Department of Financial Institutions' formal acceptance of the surrender of Marlin Business Bank's bank charter, New Jersey-based Marlin Business Services Corp. plans to work expeditiously with the Federal Reserve Board to cancel the bank's Federal Reserve Bank of San Francisco capital stock and terminate its membership in the Federal Reserve and deregister as a bank holding company.
Marlin Business Bank's surrender of its banking licenses and authority and the termination of its FDIC deposit insurance are among the conditions necessary to complete Marlin Business Services' proposed merger with a subsidiary of funds managed by HPS Investment Partners LLC.