First Bank of Kansas City Closes
September 5, 2009 by Mark Ellis
Filed under Business
In an all-too-common move, the Missouri Division of Finance has decided to close the First Bank of Kansas City on Friday, appointing the Federal Deposit Insurance Corporation as its receiver. The FDIC has entered into an agreement with Kansas’s Great American Bank that will allow the bank to assume the deposits and buy the assets of First Bank, which will then reopen as a Great American Bank Branch.
As of June 30, the First Bank of Kansas City was responsible for $16 million in assets and $15 million in deposits in its only branch. The FDIC will continue insuring the deposits of the branch and customers are encouraged to continue using that particular branch until Great American Bank fully absorbs all of the deposit information.
Depositors in the First Bank of Kansas City will still be able to access their money by writing checks and using ATM and debit cards, according to the FDIC. The estimated cost to the FDIC for the bank’s failure will be around $6 million, with Great American Bank’s acquisition of First Bank serving as the least costly solution.
Image: Flickr
