On Friday, the Missouri Division of Finance closed Premier Bank, headquartered in Jefferson City, Missouri, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Providence Bank, headquartered in Columbia, Missouri, to assume all of the deposits of the failed bank.

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 to assume the deposits of Premier Bank, but did agree to purchase approximately $657.9 million of the failed bank's assets. The FDIC and Providence Bank entered into a loss-share agreement on $408.7 million of Premier Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $406.9 million. Premier Bank is the 132nd FDIC-insured institution to fail in the nation this year, and the sixth in Missouri.