Today, the Office of Thrift Supervision closed American Sterling Bank, headquartered in Sugar Creek, Missouri and the FDIC was named as receiver. The FDIC entered into a purchase and assumption agreement with Metcalf Bank, headquartered in Lee’s Smith, Missouri to assume all the deposits of American Sterling Bank.

The FDIC reported that as of March 20, 2009, American Sterling Bank had total assets of approximately $181 million and total deposits of $171.9 million. Metcalf Bank also agreed to purchase approximately $173.6 million in assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and Metcalf Bank entered into a loss-share transaction in which the FDIC and Metcalf Bank will share in the losses on approximately $100 million in assets covered under the agreement.

The FDIC estimates the cost to the Deposit Insurance Fund will be $42 million. American Sterling Bank is the twenty-fourth bank to close in the nation this year and the first in Missouri since Hume Bank on March 7, 2008.