Home Bank, Lafayette, Louisiana, Assumes All of the Deposits of Statewide Bank, Covington, LouisianaStatewide Bank, Covington, Louisiana, was closed today by the Louisiana
Office of Financial Institutions, which appointed the Federal Deposit
Insurance Corporation (FDIC) as receiver. To protect the depositors, the
FDIC entered into a purchase and assumption agreement with Home Bank,
Lafayette, Louisiana, to assume all of the deposits of Statewide Bank.
The six branches of Statewide Bank will reopen on Saturday as branches
of Home Bank. Depositors of Statewide Bank will automatically become
depositors of Home Bank. 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. Customers
should continue to use their former Statewide Bank branch until they
receive notice from Home Bank that it has completed systems changes to
allow other Home Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Statewide 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 December 31, 2009, Statewide Bank had approximately $243.2 million
in total assets and $208.8 million in total deposits. Home Bank did not
pay the FDIC a premium to assume all of the deposits of Statewide Bank.
In addition to assuming all of the deposits, Home Bank agreed to
purchase essentially all of the failed bank's assets.
The FDIC and Home Bank entered into a loss-share transaction on $163.5
million of Statewide Bank's assets. Home Bank will share in the losses
on the asset pools covered under the loss-share agreement. The
loss-share transaction is projected to maximize returns on the assets
covered by keeping them in the private sector. The transaction also is
expected to minimize disruptions for loan customers. For more
information on loss share, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transaction can call the FDIC
toll-free at 1-800-913-3062. The phone number will be operational this
evening until 9:00 p.m., Central Standard Time (CST); on Saturday from
9:00 a.m. to 6:00 p.m., (CST); on Sunday from noon to 6:00 p.m., Central
Daylight Time (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/statewide.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF)
will be $38.1 million. Home Bank's acquisition of all the deposits was
the "least costly" resolution for the FDIC's DIF compared to all
alternatives. Statewide Bank is the 30th FDIC-insured institution to
fail in the nation this year, and the first in Louisiana. The last
FDIC-insured institution closed in the state was The Farmers Bank &
Trust of Cheneyville, Cheneyville, December 17, 2002.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to
restore public confidence in the nation's banking system. The FDIC
insures deposits at the nation's 8,012 banks and savings associations
and it promotes the safety and soundness of these institutions by
identifying, monitoring and addressing risks to which they are exposed.
The FDIC receives no federal tax dollars - insured financial
institutions fund its operations.
FDIC press releases and other information are available on the Internet
at www.fdic.gov , by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be
obtained through the FDIC's Public Information Center (877-275-3342 or
703-562-2200). PR-53-2010
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