On Friday, the Kansas Office of the State Bank Commissioner closed Hillcrest Bank, headquartered in Overland Park, Kansas, and appointed the FDIC as receiver. As receiver the FDIC entered into a purchase and assumption agreement with Hillcrest Bank, National Association, headquartered in Overland Park, Kansas, a newly-chartered bank subsidiary of NBH Holdings Corp. of Boston, Massachusetts, to assume all of the deposits of the failed bank.
As of June 30, 2010, Hillcrest Bank had approximately $1.65 billion in total assets and $1.54 billion in total deposits. Hillcrest Bank, N.A. did not pay the FDIC a premium for the deposits of Hillcrest Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Hillcrest Bank, N.A. entered into a loss-share transaction on $1.15 billion of Hillcrest Bank's assets.