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Press Releases
Providence Bank, Columbia, Missouri, Assumes All of the Deposits of Premier Bank, Jefferson City, Missouri

FOR IMMEDIATE RELEASE
October 15, 2010
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

Premier Bank, Jefferson City, Missouri, was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Providence Bank, Columbia, Missouri, to assume all of the deposits of Premier Bank, except certain brokered deposits. Brokered deposit customers should contact their brokers directly about the status of their accounts.

The nine branches of Premier Bank will reopen on Saturday as branches of Providence Bank. Depositors of Premier Bank will automatically become depositors of Providence Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Premier Bank should continue to use their existing branch until they receive notice from Providence Bank that it has completed systems changes to allow other Providence Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Premier Bank 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 June 30, 2010, Premier Bank had approximately $1.18 billion in total assets and $1.03 billion in total deposits. Providence Bank did not pay the FDIC a premium for the deposits of Premier Bank. In addition to assuming all of the deposits of the failed bank, Providence Bank agreed to purchase approximately $657.9 million of the failed bank's assets. The FDIC will retain the balance of the assets for later disposition.

The FDIC and Providence Bank entered into a loss-share transaction on $408.7 million of Premier Bank's assets. Providence 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 1-800-591-2820. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/premier_mo.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $406.9 million. Compared to other alternatives, Providence Bank's acquisition was the least costly resolution for the FDIC's DIF. Premier Bank is the 132nd FDIC-insured institution to fail in the nation this year, and the sixth in Missouri. The last FDIC-insured institution closed in the state was WestBridge Bank and Trust, Chesterfield, earlier today.