On Friday, the Office of Thrift Supervision closed Security Savings Bank, F.D.B., headquartered in Olathe, Kansas, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Simmons First National Bank, headquartered in Pine Bluff, Arkansas, to assume all of the deposits of the failed bank.
As of June 30, 2010, Security Savings Bank had approximately $508.4 million in total assets and $397.0 million in total deposits. Simmons First National Bank did not pay the FDIC a premium to assume the deposits of Security Savings Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Simmons First National Bank entered into a loss-share agreement on $334.2 million of Security Savings Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $82.2 million. Security Savings Bank is the 130th FDIC-insured institution to fail in the nation this year, and the second in Kansas. This is the second failed bank acquisition by Simmons First National Bank.