Thunder Bank of Sylvan Grove, Kansas, Becomes 100th Banking Failure

July 23, 2010 – Thunder Bank – Banking Failure #100

See analysis of this week’s bank closings at – Banking Failures Hit 103 As Regulators Close Seven More Banks

FDIC – Thunder Bank, Sylvan Grove, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Bennington State Bank, Salina, Kansas, to assume all of the deposits of Thunder Bank.

The two branches of Thunder Bank will reopen on Monday as branches of The Bennington State Bank. Depositors of Thunder Bank will automatically become depositors of The Bennington State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Thunder Bank should continue to use their existing branch until they receive notice from The Bennington State Bank that it has completed systems changes to allow other The Bennington State Bank branches to process their accounts as well.

As of March 31, 2010, Thunder Bank had approximately $32.6 million in total assets and $28.5 million in total deposits. The Bennington State Bank did not pay the FDIC a premium for the deposits of Thunder Bank. In addition to assuming all of the deposits of the failed bank, The Bennington State Bank agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-877-894-4710. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/thunderbankks.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.5 million. Compared to other alternatives, The Bennington State Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Thunder Bank is the 100th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was SolutionsBank, Overland Park, on December 11, 2009.

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