July 23 - Heartland Bank, Leawood, Kan., has been closed by The Kansas Office of the State Bank Commissioner, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Metcalf Bank, Lee's Summit, Mo., to assume all of the deposits of Heartland Bank.
As of March 31, 2012, Heartland Bank had approximately $110 million in total assets and $102.6 million in total deposits. Metcalf Bank will pay the FDIC a premium of 1.11 percent to assume all of the deposits of Heartland Bank. In addition to assuming all of the deposits of the failed bank, Metcalf Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Metcalf Bank entered into a loss-share transaction on $54.3 million of Heartland Bank's assets. Metcalf 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 800-823-5346. The phone number will be operational from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/heartland.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $3.1 million. Compared to other alternatives, Metcalf Bank's acquisition was the least costly resolution for the FDIC's DIF. Heartland Bank is the 37th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was The First National Bank of Olathe, Olathe, on Aug. 12, 2011.