Press Releases
Arvest Bank, Fayetteville, Arkansas, Assumes All of the Deposits of SolutionsBank, Overland Park, Kansas
| FOR IMMEDIATE RELEASE December 11, 2009 |
SolutionsBank, Overland Park, Kansas, was closed today by the Office of the State Bank Commissioner of Kansas, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Arvest Bank, Fayetteville, Arkansas, to assume all of the deposits of SolutionsBank.
The six branches of SolutionsBank will reopen during normal business hours on Saturday as branches of Arvest Bank. Depositors of SolutionsBank will automatically become depositors of Arvest Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Arvest Bank that it has completed systems changes to allow other Arvest Bank branches to process their accounts as well.
This evening and over the weekend, depositors of SolutionsBank 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 September 30, 2009, SolutionsBank had total assets of $511.1 million and total deposits of approximately $421.3 million. Arvest Bank did not pay the FDIC a premium for the deposits of SolutionsBank. In addition to assuming all of the deposits of the failed bank, Arvest Bank agreed to purchase essentially all of the assets.
The FDIC and Arvest Bank entered into a loss-share transaction on approximately $411.3 million of SolutionsBank's assets. Arvest 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: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-1439. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/solutions.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $122.1 million. Arvest Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. SolutionsBank is the 133rd FDIC-insured institution to fail in the nation this year, and the third in Kansas. The last FDIC-insured institution closed in the state was First National Bank of Anthony, Anthony, on June 19, 2009.
Last bank in Kansas to fail before today was the First National Bank of Anthony -- good thing it wasn't in my old stomping grounds of Long Island -- then it would have been "The First National Bank of Guido" (rimshot!) -- but it wouldn't have failed. Got that?
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