Friday, August 12, 2011
First National Bank of Olathe, Kansas Becomes 64th Bank to Fail in 2011
FNB had approximately $538.1 million in total assets and $524.3 million in total deposits.
The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of First National Bank of Olathe's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116.6 million.
This means that FNB had overvalued their assets by $130.4 Million, or 24.2%!
It also means that Enterprise Bank & Trust was only willing to acquire $118.5 Million (~20%) of FNB's assets without the FDIC agreeing to cover a large portion of future losses on those assets.
FDIC Press Release
Posted by The Doc at 10:12 PM