Kansas Bank Becomes 9th Failure of 2008

Columbian Bank and Trust Closed, Deposits Acquired by Citizens Bank and Trust of MO The Topeka, Kansas Columbian Bank and Trust Company ($752 million assets) has been closed by the Kansas Bank Commissioner, and the FDIC has been named receiver. The Citizens Bank and Trust, Chillicothe, MO acquired the insured deposits of the Topeka, KS bank.

The nine branches of The Columbian Bank and Trust Company were expected to reopen on Monday as branches of Citizens Bank and Trust.

This is the ninth bank closing so far in 2008.

Along with the $752 million in assets, the Columbian Bank and Trust Company had total deposits of $622 million, of which there were approximately $46 million in uninsured deposits held in approximately 610 accounts that potentially exceeded the insurance limits.

This estimated amount will likely change once the FDIC obtains additional information from those customers. The bank also had approximately $268 million in brokered deposits that were not part of the transaction. The FDIC will pay the brokers directly for the amount of their insured funds.

To get more information on the bank, the FDIC has set up a web site at http://www.fdic.gov/bank/individual/failed/columbian.html.

Citizens Bank and Trust will assume the insured deposits for a 1.125% premium. It also purchased $85.5 million of the failed bank's assets.

The cost to the FDIC's Deposit Insurance Fund is estimated to be $60 million. The Columbian Bank and Trust Company is the first bank to fail in Kansas since Midland Bank of Kansas, Mission, Kansas, on April 2, 1993.

To read more on recent bank closings, see: Bank, Credit Union Failures: The Most Since 2002

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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