FDIC takes charge at SolutionBank in Kansas

Toronto News.Net
Friday 11th December, 2009

SolutionsBank, Overland Park, Kansas, was closed on Friday night by the Office of the State Bank Commissioner of Kansas.

The bank's corporate headquarters is in Overland Park, Kansas,with branches at Ottawa KS, Gardner KS, Downtown Kansas City KS, Lee’s Summit MS, and Leawood KS.

On Friday the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver to the bank. 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.

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, the FDIC said in a statement.

As of September 30, 2009, SolutionsBank had total assets of $511.1 million and total deposits of approximately $421.3 million.

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.

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