Yesterday, the Department of Insurance, Financial Institutions & Professional Regulation of the Missouri Division of Finance closed Champion Bank, headquartered in Creve Coeur, Missouri, and appointed the FDIC receiver. As receiver, the FDIC entered into a purchase and assumption agreement with BankLiberty, headquartered in Liberty, Missouri, to assume all of the deposits of Champion Bank.

As of December 31, 2009, Champion Bank had approximately $187.3 million in total assets and $153.8 million in total deposits. BankLiberty did not pay the FDIC a premium to assume all of the deposits of Champion Bank, but did agree to purchase approximately $152.6 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. The FDIC and BankLiberty entered into a loss-share transaction on $113.5 million of Champion Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $52.7 million. Champion Bank is the 62nd FDIC-insured institution to fail in the nation this year, and the second in Missouri.