On Friday, the Missouri Division of Finance closed Southwest Community Bank, headquartered in Springfield, Missouri . As receiver, the FDIC entered into a purchase agreement with Simmons First National Bank, headquartered in Pine Bluff, Arkansas, to assume all of the deposits of Southwest Community Bank.
As of March 31, 2010, Southwest Community Bank had approximately $96.6 million in total assets and $102.5 million in total deposits. Simmons First National Bank will pay the FDIC a premium of 0.5% to assume all of the deposits of Southwest Community Bank, and also agreed to purchase essentially all of the failed bank's assets. The FDIC and Simmons First National Bank entered into a loss-share transaction on $66.8 million of Southwest Community Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $29.0 million. Southwest Community Bank is the 71st FDIC-insured institution to fail in the nation this year, and the fourth in Missouri.