Finance News

|

January 22, 2010

Bank of Leeton acquired by Sunflower Bank

 

For more information, contact us by e-mail or 573-751-2652.

 

Jefferson City, Mo. - The Missouri Division of Finance today accepted possession of Bank of Leeton in Johnson County. The Federal Deposit Insurance Corp. (FDIC) was immediately appointed as receiver of the bank, which was then sold to Sunflower Bank, N.A., a $1.7 billion national bank headquartered in Salina, Kan.

Lobby and drive-up services at the bank's sole location, 101 East Stone St., Leeton, will resume on Saturday, Jan. 23, at 8:00 a.m. Depositors of Bank of Leeton will automatically become depositors of Sunflower Bank, and continue to have full access to their money by writing checks or using ATM or debit cards.  Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual. Depositors will continue to be insured by the FDIC and there will be no interruption of service to customers of the former Bank of Leeton.

Commissioner of Finance Richard J. Weaver said, "The demise of the bank was due to aggressive risk selection by management with loan losses being more than the bank could support. The bank has operated under close regulatory scrutiny since 2008." 

Weaver said despite attempts by ownership to sell the bank or procure additional capital, efforts proved unsuccessful and as a result, the bank's board of directors voted to turn the bank over to the Division of Finance as allowed by state law. Assets of the bank totaled $20 million as of Dec. 31, 2009.

Customers who have questions about today's transaction can call the FDIC toll free at 1-800-523-8209. The phone number will be operational this evening until 9 p.m.; on Saturday from 9:00 a.m. to 6:00 p.m.; on Sunday from noon to 6:00 p.m.; and thereafter from 8:00 a.m. to 8:00 p.m.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

###