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National Bank Acquires All the Deposits of Meridian Bank, Eldred, Illinois

Meridian Bank, Eldred, Illinois, was closed today by the Illinois Department of Financial Professional Regulation-Division of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Meridian Bank by National Bank, Hillsboro, Illinois.

All depositors of Meridian Bank, including any with deposits in excess of the FDIC's insurance limits, will automatically become depositors of National Bank, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

The failed bank's four offices in Altamont, Carlyle, and Eldred will reopen for normal hours on Saturday, October 11th and the Alton office will reopen Tuesday, October 14th, as branches of National Bank. Over the weekend, customers of Meridian Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Meridian Bank had total assets of $ 39.18 million in total assets and $ 36.88 million in total deposits as of September 25, 2008. National Bank will purchase approximately $7.55 million of Meridian's assets, and did not pay the FDIC a premium for the right to assume all of the failed bank's deposits. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today's transaction or who would like more information about the failure of Meridian Bank can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/meridian.html, or call the FDIC toll-free at 1-877-894-4713, today until 9 p.m.; Saturday from 9 a.m. to 5 p.m.; Sunday from 12 p.m. to 5 p.m.; and thereafter from 8 a.m. to 8 p.m. All times are Central Time.

The FDIC estimates that the cost to its Deposit Insurance Fund will be between $13 million and $14.5 million. National Banks' acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to all alternatives.

Meridian Bank is the first bank to be closed in Illinois since Universal FSB, Chicago, Illinois on June 27, 2002. This year a total of fifteen FDIC-insured institutions have been closed.

In a major sweeping vote the senate passed the Wall Street Welfare bill this evening providing $700 billion to the street to help solve their problems in three easy steps, first $250 billion up front; another $100 billion upon presidential approval (which will be granted I am sure) and the last $350 pending congressional approval. And, the taxpayers pick up the tab! It is like going to a fancy restaurant with 20 friends and everyone ordering the top end meal; then the hat is passed. But, in the end there isn't enough for the bill and tip, and since you were closest to where the waiter laid the down the bill you get the opportunity to figure out how to pay - while everyone is leaving with their date!

One small bright spot is that the FDIC insurance will be raised temporarily (when does the government do something temporarily?) to $250,000 from the $100,000 current limit. This will give depositors more confidence in the banks. Regional banks worked hard to get the increase in deposit insurance limit. They hope this will give consumers more confidence in the smaller banks. The banks felt that consumers believed that the bigger banks were safer places for their savings - which is untrue.

This will also increase insurance premiums the FDIC can charge the banks; so for the extra $150,000 of deposit insurance the FDIC will charge the banks approximately $105 per account (depending on the bank's premium rate of course).  This will bring in billions of additional insurance premiums into the FDIC insurance fund.

The bill also gave the FDIC the unlimited ability to borrow from the Treasury, which is a major increase from the current limit of $30 billion.  The unlimited borrowing, again, is temporary - it expires in 2009.

Maybe it is time to call your congressman!!

FDIC, Federal Reserve and Treasury Agree to Provide Open Bank Assistance to Protect Depositors

Citigroup Inc. will acquire the banking operations of Wachovia Corporation; Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC.

"For Wachovia customers, today's action will ensure seamless continuity of service from their bank and full protection for all of their deposits." said FDIC Chairman Sheila C. Bair. "There will be no interruption in services and bank customers should expect business as usual."

Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

In consultation with the President, the Secretary of the Treasury on the recommendation of the Federal Reserve and FDIC determined that open bank assistance was necessary to avoid serious adverse effects on economic conditions and financial stability.

"On the whole, the commercial banking system in the United States remains well capitalized. This morning's decision was made under extraordinary circumstances with significant consultation among the regulators and Treasury," Bair said. "This action was necessary to maintain confidence in the banking industry given current financial market conditions."

Wachovia customers with questions should call their normal banking representative, service center, 1-800-922-4684 or visit http://www.wachovia.com/. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit http://www.fdic.gov/.

FDIC Facilitates Transaction that Protects All Depositors and Comes at No Cost to the Deposit Insurance Fund

JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund.

"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."

JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.

"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said.

Washington Mutual Bank also has a subsidiary, Washington Mutual FSB, Park City, Utah. They have combined assets of $307 billion and total deposits of $188 billion.

Thursday evening, Washington Mutual was closed by the Office of Thrift Supervision and the FDIC named receiver. WaMu customers with questions should call their normal banking representative, service center, 1-800-788-7000 or visit http://www.wamu.com/. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit http://www.fdic.gov/.

All Insured and Uninsured Deposits Transferred to Acquiring Banks

Ameribank, Inc., was closed today by the Office of the Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named receiver. The FDIC entered into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and The Citizens Savings Bank, Martins Ferry, Ohio to take over all of the deposits and certain assets of Ameribank, Inc., Northfork, West Virginia.

Ameribank has five branches located in West Virginia and three branches located in Ohio. Pioneer Community Bank, Inc., Iaeger, West Virginia will assume all deposits for the five branches located in West Virginia. The Citizens Savings Bank, Martins Ferry, Ohio will assume all deposits for the three branches located in Ohio.

All depositors, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of the assuming institution where the customer opened the account for the full amount of their deposits. All deposits will continue to be insured with the new institutions. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance. Brokered deposits are included in this transaction.

Branches in West Virginia will reopen on Monday. Ohio branches will reopen on Saturday. Over the weekend, customers of the banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will be processed normally. Loan customers should continue to make loan payments as usual.

Pioneer Community Bank, Inc., and The Citizen's Saving Banks' acquisition of all deposits was the "least costly" resolution for the Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the banks' franchises.

As of June 30, 2008, Ameribank, Inc. had total assets of $115 million and total deposits of $102 million.

Customers who would like more information on today's transactions should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/ameribank.html. They may also call the FDIC toll-free about both institutions at 1-877-894-4710 until 9:00 p.m., this evening; Saturday and Sunday from 8:00 a.m. to 5:00 p.m.; and thereafter from 8:00 a.m. to 6:00 p.m. All time are Eastern Standard Time.

In addition to assuming all of the deposits of Ameribank, Inc., the acquiring institutions will purchase approximately $23 million in assets from the receivership. The FDIC will retain the remaining assets for later disposition. Pioneer Community Bank, Inc. will pay a premium of 2 percent for all deposits of the West Virginia branches. The Citizens Savings Bank will pay a premium of 1.14 percent for all deposits of the Ohio branches.

The cost of the transactions to the Deposit Insurance Fund is estimated to be $42 million. The failed bank had assets of $112.62 million, .033 percent of the $13.4 trillion in assets held by the 8,451 institutions insured by the FDIC. Ameribank, Inc. is the first bank to be closed in West Virginia since First National Bank of Keystone, Keystone, on September 1, 1999. This year, a total of twelve FDIC-insured banks have been closed.

Silver State Bank, Henderson, Nevada, was closed today by the Nevada Financial Institutions Division, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. To protect the depositors, the FDIC entered into a Purchase and Assumption Agreement with Nevada State Bank, Las Vegas, Nevada, to assume the Insured Deposits of Silver State Bank.

The branches of Silver State Bank will open on Monday as Nevada State Bank in Nevada and National Bank of Arizona in Arizona. Depositors of the failed bank will automatically become depositors of Nevada State Bank or National Bank of Arizona. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

Over the weekend, customers of Silver State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2008, Silver State Bank had total assets of $2.0 billion and total deposits of $1.7 billion. Nevada State Bank agreed to purchase the insured deposits for a premium of 1.3 percent. At the time of closing, there were approximately $20 million in uninsured deposits held in approximately 500 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

Silver State Bank also had approximately $700 million in brokered deposits that are not part of today's transaction. The FDIC will pay the brokers directly for the amount of their insured funds.

Customers with accounts in excess of $100,000 should contact the FDIC toll-free at 1-800-523-8177 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. PDT; on Saturday and Sunday from 9:00 a.m. to 6:00 p.m. PDT; and on Monday and thereafter from 8:00 a.m. to 8:00 p.m. PDT.

Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/silverstate.html. Beginning Monday, depositors of Silver State Bank with more than $100,000 at the bank may visit the FDIC's Web page, "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage

In addition to assuming the failed bank's insured deposits, Nevada State Bank will purchase a small amount of assets comprised of cash and securities. The FDIC will retain the remaining assets for later disposition.

The transaction is the least costly resolution option, and the FDIC estimates that the cost to its Deposit Insurance Fund is between $450 and $550 million. Silver State Bank is the second bank to fail in Nevada in 2008. First National Bank of Nevada, Reno failed on July 25, 2008. This year, a total of eleven FDIC-insured institutions have been closed.

The FDIC's mission to maintain stability in the U.S. banking system is partially fulfilled by the deposit insurance program. The FDIC collects premiums from banking institutions to fund the deposit insurance; these premiums are calculated as a percentage of each bank's total deposits. Most banks today are paying out insurance premiums of about 5 to 7 cents for every $100 of domestic deposits.   

The premiums, less operating costs, go into the Deposit Insurance Fund (DIF) which is used to cover the deposit losses of failed banks. Since the existence of a viable deposit insurance program is of critical importance in maintaining the public's faith in the banking system, the FDIC is continually assessing the risks of bank failures and projecting potential expenses that may be charged to the DIF.

Rising losses could signal rising fees

This year, the FDIC has been appointed the receiver for ten banks with total assets just over $40 billion. Not all of these assets translate to losses in the DIF however. Part of the FDIC's function as receiver is to sell off the assets of the failed banks, thus recouping losses to the DIF. It is estimated that the losses to the DIF associated with those ten bank failures will amount to $7.5 billion, meaning that more than 80 percent of the total assets should be recovered.

Even so, the FDIC's list of problem banks is growing. As of the end of the second quarter, there were 117 banks on the "problem" list, up from 90 at the end of the first quarter and 61 at the end of the second quarter of 2007. To address the rising number of at-risk banks, the FDIC increased its provisions for insurance losses by $10.2 billion during the second quarter; this was the largest factor behind the $7.6 billion decrease in the fund, which ended the quarter at $45.2 billion (unaudited). Since insured deposits only rose 0.5 percent in the same time period, the reserve ratio fell to 1.01 percent as of June 30, 2008. The reserve ratio has not been this low since 1995, when the combined Bank Insurance Fund (BIF) and Savings Account Insurance Fund (SAIF) was 0.98. The BIF and SAIF were merged in 2006.

When the reserve ratio dips below 1.15 percent, the FDIC is required by the Federal Deposit Insurance Reform Act of 2005 to create a fund restoration plan that will bring the ratio back up to 1.15 percent within five years. FDIC Chairman, Sheila C. Bair, has already stated publicly that the FDIC's restoration plan is likely to incorporate an increase in the premiums the banks pay into the fund. Bair has also indicated that the FDIC will propose changes in the rate structure to shift a greater share of the responsibility onto financial institutions that participate in higher-risk activities. The current credit crisis will likely result in premium increases across the board for all banks.

An increase in FDIC insurance premiums will put more strain on banks that are already grappling with rising credit losses. While this is bad news for existing banks, it is a necessary step in maintaining the public's confidence in the banking system. Should the FDIC develop an assessment system that provides rewards to banks that engage in safer activities, at least these institutions will have the option and incentive to take some of the risk out of their operations. De novo banks may end up with an advantage in this regard, because they can open the doors with a business strategy that complies with FDIC guidelines to keep premiums low and minimize risk going forward. De Novo Banks also open without a legacy portfolio that may have some high-risk loans. Very few de novo banks fail, which is a credit to the bankers and regulators working together in an effort to build a solid foundation for the new financial institution.

For banks with problem loans in its portfolio, the best solution is to get in and meet with the borrowers early (perhaps when the borrower misses the first payment, not the third). The sooner the problems are addressed the greater opportunity for success in recovery or improvement of the loan. This might mean meeting with all borrowers as a ‘check up' on their status. It is far better for the bank to find the problem loans than the examiners.

The bank insurance fund is a critical part of our country's economic engine and is a model for the world. The fund will be stressed during this credit crisis, but we have to maintain the faith in the system that has kept our banking system safe and in good health for the past 75 years.

By Wendell Brock, MBA, ChFC

Integrity Bank, Alpharetta, Georgia, with $1.1 billion in total assets and $974.0 million in total deposits as of June 30, 2008, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation was named receiver.

The FDIC Board of Directors today approved the assumption of all the deposits of Integrity Bank by Regions Bank, Birmingham, Alabama. All depositors of Integrity Bank, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Regions Bank for the full amount of their deposits, and they will continue to have uninterrupted access to their deposits. Depositors will continue to be insured with Regions Bank so there is no need for customers to change their banking relationship to retain their deposit insurance.

The failed bank's five offices will reopen Tuesday, September 2nd, as branches of Regions Bank. However, for the time being, customers of both banks should use their existing branches until Regions Bank can fully integrate the deposit records of Integrity Bank.

Regions Bank has agreed to pay a total premium of 1.012 percent for the failed bank's deposits. In addition, Regions Bank will purchase approximately $34.4 million of Integrity Bank's assets, consisting of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today's transaction or who would like more information about the failure of Integrity Bank can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/integrity.html, or call the FDIC toll-free at 1-800-523-0640, today from 5 p.m. until 9 p.m., Eastern Time, on Saturday from 9 a.m. to 6 p.m., on Sunday from 11 a.m. to 5 p.m., and thereafter from 8 a.m. to 8 p.m.

The FDIC estimates that the cost to its Deposit Insurance Fund will be between $250 million and $350 million. Regions Bank's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the failed bank's franchise.

Integrity Bank is the tenth FDIC-insured bank to fail this year, and the first in Georgia since NetBank in Alpharetta on September 28, 2007.

By Wendell Brock, MBA, ChFC

Years ago when I was backpacking in the High Sierras, my Boy Scout leader taught me that the air temperature was coldest just before dawn. Hopefully, we are experiencing that time now and things will get better as dawn approaches, because this quarter's report is pretty ice cold! Total net income from insured banks is off 87 percent from second quarter last year to $5 billion. "Loss provisions totaled $50.2 billion, more than four times the $11.4 billion quarterly total of a year ago." Provisions drained almost one-third (31.9 percent) of the industry's operating revenue-the highest level since the third quarter of 1989. 

The average return on assets (ROA) was only 0.15 percent; in the same quarter last year, it was 1.21 percent. Larger institutions (over $1 billion in assets) suffered a bit more; their ROA was 0.10 percent. The average ROA for the smaller institutions (less than $1 billion in assets) was 0.57 percent. In the same quarter last year, the ROAs were 1.23 percent and 1.10 percent, respectively. Nearly two of three institutions (62.1 percent) reported a lower ROA this quarter. Almost 18 percent of banks, approximately 1,530 in number, were unprofitable this quarter; in the second quarter of 2007, this percentage was 9.8 percent.

Noninterest income was 10.9 percent lower than in second quarter of 2007, dipping to $60.8 billion. This decline was due in large part to lower trading income, which totaled only $5.5 billion and was down 88.6 percent from last year. A revenue bright spot showed up in net interest income, which increased by $8.2 billion (9.3 percent) over last year, with servicing fee income rising 35.9 percent or $1.9 billion. Bank customers paid more in service charges this quarter by $853 million or 8.6 percent over year-earlier levels.

Net interest margin ticked up slightly to 3.37 percent compared to the first quarter's margin of 3.33 percent. "Improvements and declines were fairly evenly divided among insured institutions, with 46.9 percent reporting lower margins than in the first quarter, and 51.5 percent reporting improved NIMs." The average yields on interest-bearing assets fell 51 basis points, from 6.27 percent to 5.76 percent. During the same quarter, the interest expense dropped 57 basis points from 2.95 percent to 2.38 percent. The industry average has remained steady within a 5-basis-point range over the last six quarters. The margins for community banks have fallen by 21 basis points, and larger institutions have gained only 10 basis points.

Net charge-offs increased sharply to a total of $26.4 billion during the quarter, which is almost three-times the $8.9 billion in the second quarter of 2007. This is the largest quarterly charge-off rate since the fourth quarter of 1991. At large institutions, the charge-off rate was 1.46 percent; at small institutions, the rate was only 0.44 percent. The annualized industry average for the quarter was 1.32 percent, considerably higher than last year's quarterly average of 0.49 percent.

The amount of noncurrent loans and leases has risen for nine consecutive quarters, increasing by $26.7 billion or 19.6 percent. In the second quarter, all major loan categories experienced increases in noncurrent loans. By quarter-end, the industry's total noncurrent loans and leases reached 2.04 percent, the highest level since the third quarter of 1993. Provisions increased for the third straight quarter, nearly doubling the amount of charge-offs. Institutions set aside $23.8 billion in provisions during the quarter and industry reserves rose by 19.1 percent. The total ratio increased from 1.52 percent to 1.80 percent, which is the highest level since mid-1996. At the same time, the coverage ratio slipped slightly from 88.9 cents for every $1.00 of noncurrent loans to 88.5 cents, which is a 15-year low.

Sixty percent of the institutions reported a decline in their total risk-based capital ratios during the quarter. The industry added only $10.6 billion to its regulatory capital during the quarter. Dividend payments were significantly lower during the quarter, totaling $17.7 billion, less than half the $40.9 billion paid a year earlier. Only 45.5 percent of the institutions reported higher retained earnings compared to a year ago. "Despite the slowdown in capital growth and the erosion in capital ratios at many institutions, 98.4 percent of all institutions (accounting for 99.4 percent of total industry assets) met or exceeded the highest regulatory capital requirements at the end of June."

Total assets declined for the first time since the first quarter of 2002 and experienced the largest quarterly decline since the first quarter of 1991. The decline totaled $118.9 billion or 11.8 percent, with nearly 40 percent of banks reported lower assets at the end of June. OREO properties (acquired by foreclosure) increased by $3.5 billion (29.1 percent) during the quarter to $15.6 billion.

Small business and farm loans increased only 3.4 percent or $25.3 billion during the 12 months ending June 30. These loans currently account for 32.7 percent of all business and farm loans to domestic borrowers. Larger business and farm loans increased by $249.4 billion or 18.4 percent during the same period. Total deposits increased only $6.9 billion or 0.1 percent during the second quarter. This was mostly from deposits in foreign offices, which rose by $46.8 billion, while domestic office deposits decreased by $39.6 billion.

Reporting institutions dropped to 8,451, equating to a loss of 43 institutions. Two banks failed during the quarter, ANB Financial in Arkansas and First Integrity in Minnesota. Three mutual banks converted to stock ownership (combined assets of $1.1 billion). The FDIC's problem bank list increased by 27 banks this quarter, from 90 banks in the first quarter to 117. This is an increase of 40 new problem banks for the year. Assets of problem banks increased from $26.3 billion to $78.3 billion. During the quarter there were 24 new charters, which brings the total of de novo banks for the year to 62.

We can only hope this is as cold as it gets before the dawn!

Note: quotes are from the FDIC second quarter 2008 report.

The Columbian Bank and Trust Company, Topeka, Kansas, was closed today by the Kansas Bank Commissioner J. Thomas Thull, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank and Trust, Chillicothe, Missouri, to assume the insured deposits of The Columbian Bank and Trust Company.

The nine branches of The Columbian Bank and Trust Company will reopen on Monday as branches of Citizens Bank and Trust. Depositors of the failed bank will automatically become depositors of Citizens Bank and Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

Over the weekend, customers of The Columbian Bank and Trust Company Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2008, The Columbian Bank and Trust Company had total assets of $752 million and total deposits of $622 million, of which there were approximately $46 million in uninsured deposits held in approximately 610 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

The Columbian Bank and Trust Company also had approximately $268 million in brokered deposits that are not part of today's transaction. The FDIC will pay the brokers directly for the amount of their insured funds.

Customers with accounts in excess of $100,000 should contact the FDIC toll-free at 1-800-523-8209 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. CST; on Saturday from 9:00 a.m. to 6:00 p.m. CST; on Sunday from 11:00 a.m. to 5:00 p.m.; and thereafter from 8:00 a.m. to 8:00 p.m. CST. Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/columbian.html.

Beginning Monday, depositors of The Columbian Bank and Trust Company with more than $100,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.

Citizens Bank and Trust agreed to assume the insured deposits for a 1.125% premium. It will also purchase $85.5 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and securities. The FDIC will retain the remaining assets for later disposition.

The cost to the FDIC's Deposit Insurance Fund is estimated to be $60 million. The Columbian Bank and Trust Company is the first bank to fail in Kansas since Midland Bank of Kansas, Mission, Kansas, on April 2, 1993. This year, a total of nine FDIC-insured institutions have been closed.