FDIC Friday ~ Sept 14, 2012 ~ Another One Bites The Dust!
Posted: Fri Sep 14, 2012 6:40 pmSimmons First National Bank, Pine Bluff, Arkansas, Assumes All of the Deposits of Truman Bank, Saint Louis, Missouri
As of June 30, 2012, Truman Bank had approximately $282.3 million in total assets and $245.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Simmons First National Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Simmons First National Bank entered into a loss-share transaction on $117.8 million of Truman Bank's assets. Simmons First National Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $34.0 million. Compared to other alternatives, Simmons First National Bank's acquisition was the least costly resolution for the FDIC's DIF. Truman Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the second in Missouri. The last FDIC-insured institution closed in the state was Glasgow Savings Bank, Glasgow, on July 13, 2012.
As of June 30, 2012, Truman Bank had approximately $282.3 million in total assets and $245.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Simmons First National Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Simmons First National Bank entered into a loss-share transaction on $117.8 million of Truman Bank's assets. Simmons First National Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $34.0 million. Compared to other alternatives, Simmons First National Bank's acquisition was the least costly resolution for the FDIC's DIF. Truman Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the second in Missouri. The last FDIC-insured institution closed in the state was Glasgow Savings Bank, Glasgow, on July 13, 2012.