Home National Bank ? an Oklahoma-based institution with branches in Winfield and Ark City ? was closed by federal banking regulators Friday and its 15 branches will reopen Saturday under the ownership of RCB Bank.
The Federal Deposit Insurance Corporation announced the move late Friday. Bank customers will continue to have their deposits insured by the FDIC and will not need to change their banking relationship, according to a written statement.
RCB Bank is also based in Oklahoma.
Home National’s struggles had been ongoing for at least two years and the Office of the Comptroller of the Currency had stepped in to monitor the situation in 2008. The bank becomes the 90th FDIC-insured institution to fail this year.
Federal officials said closing the bank and selling it off appeared to be the move that costs the FDIC the least money.
This evening and over the weekend, depositors of Home National Bank can access their money by writing checks or using ATM or debit cards, according to the statement. Checks drawn on the bank will continue to be processed.
Loan customers should continue to make their payments as usual.
As of March 31, Home National Bank had approximately $644.5 million in total assets and $560.7 million in total deposits. RCB Bank paid the FDIC a premium of .22 percent for the deposits of Home National Bank. In addition to assuming the deposits, RCB Bank agreed to purchase approximately $340.7 million of the failed bank’s assets.
In a separate transaction with the FDIC, Enterprise Bank & Trust, Clayton, Mo. agreed to purchase approximately $260.8 million of Home National Bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $260.8 million of Home National Bank’s assets purchased from the FDIC. Enterprise Bank & Trust 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.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $78.7 million. Compared to other alternatives, these transactions were the least costly resolution for the FDIC’s DIF.
Customers who have questions about Friday’s transaction can call the FDIC toll-free at 1-800-405-8357.
