WASHINGTON — The Office of the Comptroller of the Currency shut $538.1 million-asset First National Bank of Olathe in Kansas, the first failure in the state this year, bringing the total number of collapses in the country to 64.
Enterprise Bank & Trust of Clayton, Missouri, agreed to assume all of the failed bank's $524.3 million of deposits and most of its assets after paying the FDIC a premium of 1.5%. Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of the assets.
The failure is expected to cost the Deposit Insurance Fund $116.6 million.
In a press release, the OCC said the bank had experienced "substantial dissipation of assets and earnings due to unsafe and unsound practices." The agency said the bank had suffered losses that depleted its capital, leaving it critically undercapitalized with no "reasonable prospect" of recovery.