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FDIC APPROVES THE ASSUMPTION OF THE INSURED DEPOSITS OF SINCLAIR NATIONAL BANK, GRAVETTE, ARKANSAS


FOR IMMEDIATE RELEASE
PR-63-2001 (9-07-2001)

Media Contact:
David Barr (202) 898-6992

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) has approved the assumption of the insured deposits of Sinclair National Bank, Gravette, Arkansas, by Delta Trust & Bank, Parkdale, Arkansas.

Sinclair National was closed today by the office of the Comptroller of the Currency, and the FDIC was named receiver. Depositors of Sinclair National will automatically become deposit customers of the assuming bank. The failed bank's two offices will reopen as branches of Delta Trust. The Bella Vista branch will open under normal business hours beginning tomorrow from 8:30 a.m. to 11:00 a.m. The former main office in Gravette, which did not have Saturday hours, will reopen Monday at 8:00 a.m. and operate with new new hours of operation (8:00 a.m. to 5:00 p.m. Monday through Thursday and 8:00 a.m. to 6:00 p.m. Friday).

Sinclair National had total assets of $30.7 million and total deposits of $25.7 million. There was an estimated $386,000 in 58 deposit accounts that exceeded the federal deposit insurance limit and will not be assumed by the Delta Trust. Customers with deposits that exceeded the $100,000 insurance limit should contact the FDIC by calling 1-800-568-9161. Depositors with uninsured funds who do not contact the FDIC will receive a letter and claim form in the mail.

Delta Trust will pay the FDIC a premium of $551,000 for the right to assume the insured deposits and to purchase $4.9 million of Sinclair National's assets. The FDIC, as receiver, will retain the remaining $25.8 million in assets for later disposition.

The FDIC estimates the cost of this transaction to the Bank Insurance Fund (BIF) will be $4.4 million. Sinclair National is the third BIF-insured bank failure of the year and the fourth institution insured by the FDIC to fail in 2001.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,840 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).

Last Updated 09/07/2001 communications@fdic.gov