As of December 31, 2012, Douglas County Bank had approximately $316.5 million in total assets and $314.3 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Douglas County Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase approximately $260.9 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Hamilton State Bank entered into a loss-share transaction on $159.2 million of Douglas County Bank’s assets. Hamilton State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.
The person who sent me the article told me that they were planning on mounting a challenge against the new regulations created by the Dodd-Frank package passed couple of years ago. Sounds like they pretty much saw the handwriting on the wall.