Another bank failed Friday bringing the tally to 24 for this fiscal year. The FDIC said Sugar Creek, Missouri-based American Sterling Bank was closed today by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named the receiver.
From FDIC: To protect the depositors, the FDIC entered into a purchase and assumption agreement with Metcalf Bank, Lee’s Summit, Missouri, to assume all of the deposits of American Sterling Bank.
As of March 20, 2009, American Sterling Bank had total assets of approx. $181 million and total deposits of $171.9 million. In addition to assuming the failed bank’s deposits, Metcalf also agreed to purchase approximately $173.6 million in assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Metcalf Bank entered into a loss-share transaction on approximately $100 million of American Sterling’s assets. Metcalf Bank will share with the FDIC in the losses on the assets covered under the agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $42 million. Metcalf Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives.
In 2008, a total of 25 banks were seized by regulators, up from only 3 in 2007. Since the beginning of the credit crunch in August 2007, so far a total 52 banks have closed their doors.