Great Southern Bank, a subsidiary of Missouri-based Great Southern Bancorp, has entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and certain assets of Iowa-based Vantus Bank.
Reportedly, Great Southern will be assuming approximately $368 million of the deposits of Vantus Bank. Additionally, Great Southern is purchasing approximately $332 million in loans and $6 million of other real estate owned (ORE). In addition, Great Southern will also be purchasing cash and certain marketable securities of Vantus Bank.
All Vantus Bank offices will open as branches of Great Southern Bank. Vantus Bank depositors will become depositors of Great Southern Bank, and deposits will continue to be insured by the FDIC. With this acquisition, Great Southern will now operate 71 retail banking centers in four states.
The bank has stated that the depositors of Vantus Bank can continue to access their money by writing checks or using ATM or debit cards. It has further added that the customers of both banks can continue to bank as they normally do at their existing branches until Great Southern can fully integrate the deposit records of Vantus Bank.
Under this agreement, the FDIC has agreed to cover 80% of the losses on the loans and ORE up to approximately $102 million, and 95% of losses that exceed that amount.
Joseph Turner, president and CEO, Great Southern, said: “We welcome Vantus Bank customers to Great Southern. Customers can be confident that their deposits are safe and readily accessible. It’s business as usual. We look forward to the opportunity to continue to serve Vantus Bank customers with the excellent service they have come to expect.”
