The Office of the Comptroller of the Currency (OCC) shut down ""First National Bank of Olathe"":https://www.fnbolathe.com in Kansas on Friday evening and appointed the FDIC as receiver.
So far this year, 64 insured institutions have landed on the FDIC's ""failed bank list"":http://www.fdic.gov/bank/individual/failed/banklist.html. First National Bank of Olathe is the first Kansas-based institution to make that list in 2011.[IMAGE] [COLUMN_BREAK]
The OCC said it acted after finding that the bank had experienced ""substantial dissipation of assets and earnings due to unsafe and unsound practices."" The federal regulator says First National Bank of Olathe was ""critically undercapitalized,"" with ""no reasonable prospect"" of replenishing capital without federal assistance.
First National Bank of Olathe operated six branch locations, with 524.3 million in deposits and $538.1 million in total assets. The FDIC brokered a deal with ""Enterprise Bank & Trust"":http://www.enterprisebank.com out of Clayton, Missouri to take over the failed institution.
Enterprise Bank & Trust will pay the FDIC a premium of 1.5 percent to assume all of the deposits of First National Bank of Olathe, and also agreed to purchase essentially all of its assets.
The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of the failed bank's assets. First National Bank of Olathe's closing is expected to cost the FDIC $116.6 million.