September 14, 2012
Truman Bank, Clayton, acquired by Simmons First National Bank, Pine Bluff, Ark.
Contact: Travis Ford
Jefferson City, Mo. - The Missouri Division of Finance today accepted possession of Truman Bank, Clayton, and appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. To protect depositors, an agreement to acquire the bank was reached with Simmons First National Bank, a $1.6 billion bank headquartered in Pine Bluff, Ark.
Depositors of Truman Bank automatically become depositors of Simmons First National Bank, and continue to have full access to their accounts by writing checks or using their ATM cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Depositors will continue to be fully insured by the FDIC. Normal operating hours for lobby or drive-up services for former Truman Bank customers will resume on Saturday.
"There will be no interruption of services for customers of the former Truman Bank," said Richard J. Weaver, Commissioner of the Division of Finance. "The demise of this bank is the result of aggressive, imprudent lending decisions made by prior management. Many of these loans were in high-risk commercial real estate and development projects that proved uncollectible. The bank has operated under close regulatory scrutiny since 2008."
Despite management's best efforts, attempts to obtain additional capital were not successful, and as a result, the board of directors voted to turn the bank over to the Division of Finance, as required by state law when a bank is in failing condition. Assets of the bank totaled $282 million as of June 30.
Customers who have questions about today's transaction should call the FDIC toll-free at 1-800-823-5028. The phone number will be operational this evening until 9; on Saturday from 9 a.m. to 6 p.m.; on Sunday from noon to 6 p.m.; on Monday from 8 a.m. to 8 p.m. and thereafter from 9 a.m. to 5 p.m. Interested parties also can visit the FDIC's website at http://www.fdic.gov/bank/individual/failed/truman.html.
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.