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Simmons First National Assumes Deposits of Excel Bank in Missouri
Oct 22 - Excel Bank, Sedalia, Mo., has been closed by the Missouri Division of Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Simmons First National Bank, Pine Bluff, Ark., to assume all of the deposits of Excel Bank.
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: www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about the transaction should call the FDIC toll-free at 800-830-4697. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/excelbank.html.
The FDIC estimates that the cost to the Deposit Insurance Fund 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, St. Louis, on Sept. 14, 2012.