Yesterday, the OCC closed Southern Colorado National Bank, headquartered in Pueblo, Colorado, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Legacy Bank, headquartered in Wiley, Colorado, to assume all of the deposits of Southern Colorado National Bank for a 1% premium.

As of September 4, 2009, Southern Colorado National Bank had total assets of $39.5 million and total deposits of approximately $31.9 million. Legacy Bank also agreed to purchase essentially of the failed bank’s assets. The FDIC and Legacy Bank entered into a loss-share agreement on approximately $25.5 million of Southern Colorado National Bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $6.6 million. Southern Colorado National Bank is the 98th bank to fail in the nation this year and the 3rd in Colorado.