FDIC Shuts Down Sedalia Bank
The Missouri Division of Finance closed Excel Bank of Sedalia Friday. To protect account holders, the Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with Simmons First National Bank, of Pine Bluff, Arkansas, to assume all of the deposits of Excel Bank. The four branches of Excel Bank will reopen during their normal business hours beginning Saturday as branches of Simmons First National Bank. Depositors of Excel Bank will automatically become depositors of Simmons First National Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Excel Bank should continue to use their existing branch until they receive notice from Simmons First National Bank that it has completed systems changes to allow other Simmons First National Bank branches to process their accounts as well. Friday evening and over the weekend, depositors of Excel Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.As of June 30, 2012, Excel Bank had approximately $200.6 million in total assets and $187.4 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 assets.The FDIC and Simmons First National Bank entered into a loss-share transaction on $126.6 million of Excel 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 the link at the bottom of this story. Customers with questions about Friday’s transaction should call the FDIC toll-free at 1-800-830-4697. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $40.9 million. Compared to other alternatives, Simmons First National Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Excel Bank is the 46th FDIC-insured institution to fail in the nation this year, and the third in Missouri. The last FDIC-insured institution closed in the state was Truman Bank, of St. Louis, on September 14, 2012.
