Security Savings Bank, FSBThe Office of Thrift Supervision closed Security Savings Bank, FSB of Olathe, Kan. and appointed the FDIC receiver. The FDIC then sold the failed institution's $508 million in total assets and $397 million in total deposits to Simmons First National Bank of Pine Bluff, Ark. The FDIC agreed to cover 80% of losses on $334 million of the acquired assets. The nine branches of Security Savings Bank, FSB were set to reopen during normal business hours as branches of Simmons First National Bank. The acquiring bank is a subsidiary of Simmons First National Corp. ( SFNC). After recording 2009 net losses of $21.4 million -- mainly the result of provisions for loan loss reserves -- and a first-quarter net loss of $6.5 million, Security Savings Bank, FSB slipped to undercapitalized status as of March 31, according to SNL Financial. Its Tier 1 leverage ratio was 4.18% and its total risk-based capital ratio was 5.40%, SNL Financial said. These ratios need to be at least 5% and 10%, respectively, for most banks and thrifts to be considered well-capitalized by regulators. They need to be at least 4% and 8%, respectively, for most institutions to be considered adequately capitalized. Security Savings Bank, FSB had a net loss of $7.5 million during the second quarter, leaving its two capital ratios at 2.98% and 5.40%, respectively, as of June 30. The institution's ratio of nonperforming assets -- including loans past due 90 days or in nonaccrual status and repossessed real estate -- made up 9.37% of total assets. A cease-and-desist order from the OTS in August 2009 required the thrift to raise significant additional capital by the end of the third quarter of 2009. In the current environment, it is very difficult for most troubled community banks to attract outside investors or a merger partner since investors and other banks are probably better off picking up failed banks with FDIC loss-sharing guarantees. The FDIC estimated the cost to the deposit insurance fund from Security Savings Bank, FSB's failure would be $82.2 million.
WestBridge Bank and Trust CompanyState regulators in Missouri took over WestBridge Bank and Trust Company of Chesterfield. The FDIC was appointed receiver and sold the failed bank's $92 million in total assets and $73 million in total deposits to Midland States Bank of Effingham, Ill. The FDIC agreed to share in losses on $73 million of the acquired assets. The failed bank's office was scheduled to reopen as a branch of Midland States Bank on Monday. The FDIC estimated the cost of the bank failure would be $18.7 million.
Premier BankThe largest bank to fail on Friday was Premier Bank of Jefferson City, Mo., which had roughly $1.2 billion in total assets and $1 billion in total deposits when the Missouri Division of Finance closed it. The FDIC was appointed receiver and sold the failed bank's deposits to Providence Bank of Columbia, Mo. Providence Bank also took on about $658 million of the failed bank's assets, with the FDIC retaining the rest for later disposition. The agency agreed to cover 80% of losses on $409 million of the acquired assets and estimated the cost of Premier Bank's failure to the deposit insurance fund would be $406.9 million. The failed bank's nine branches were scheduled to reopen Saturday as branches of Providence Bank. Premier Bank had slipped to undercapitalized following a net loss of $18.2 million in the third quarter of 2009 as problem loans mounted. The bank had a very heavy concentration in construction loans and commercial mortgages, and its nonperforming assets ratio was a crippling 25.63% as of June 30.
Thorough Bank Failure CoverageFlorida leads all states with 25 bank closures this year, followed by 15 in Illinois and 14 failures in Georgia. All bank and thrift failures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map: The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.
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