Arkansas
State Bank Department

Commissioner Takes Possession of First State Bank, Batesville, Arkansas

(updated December 17, 2010)

 

 

Arkansas State Bank Commissioner Takes Possession of First Southern Bank, Batesville, Arkansas

 

FOR IMMEDIATE RELEASE

December 17, 2010

 

 

Little Rock, Arkansas – The Arkansas State Bank Commissioner took possession of First Southern Bank, Batesville Arkansas on December 17, 2010.  The Arkansas Bank Commissioner appointed the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of First Southern Bank effective immediately pursuant to Arkansas Code Annotated (“A.C.A.”) § 23-49-106. 

 

The Commissioner took possession of First Southern Bank pursuant to A.C.A. § 23-49-102, which allows the Commissioner to take possession of a bank in such cases where the bank is insolvent or in imminent danger of insolvency.  To protect the depositors, an agreement to acquire First Southern Bank was reached with Southern Bank, an out-of-state bank headquartered in Poplar Bluff, Missouri with total assets over $500 million. 

 

Depositors of First Southern Bank automatically become depositors of Southern Bank, and will be able to access their accounts at the former main office and branch location of First Southern Bank.  Customers of the former First Southern Bank can continue to access their accounts through automated teller machine transactions, checks, and debit transactions. 

 

“This transaction in no way reflects a weakened condition of the Arkansas banking system or the Arkansas economy,” said Candace Franks, Arkansas Bank Commissioner.  “This instance was not the result of poor quality loans, but the result of an imprudent business relationship between First Southern Bank and one individual” she followed. 

 

The Commissioner reminds depositors that deposits of all Arkansas banks are insured by the FDIC up to $250,000.  Special rules are in place for certain types of accounts that may further expand deposit insurance coverage.  Additional information can be found on FDIC deposit insurance at www.fdic.gov. 

 

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-331-6306.  The phone number is operational this evening until 9:00 p.m.; on Saturday from 9:00 a.m. until 6:00 p.m.; on Sunday from 12:00 p.m. until 6:00 p.m.; and thereafter from 8:00 a.m. until 8:00 p.m.  All times are central time. 

 

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