FAILING BANK ACQUISITIONS
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The FDIC markets troubled institutions to healthy insured depository institutions. Each institution must be resolved using the least costly resolution option for the FDIC. The FDIC's primary objective is to maintain financial system stability and public confidence. Returning assets to the private sector in an orderly manner at the best price is another key objective. The FDIC also tries to reduce the impact on the community.
Recapitalization is the preferred method to resolve open troubled financial institutions. FDIC markets institutions in case a failing institution is not able to resolve its issues on its own. If an insured depository institution is unable to resolve its issues, the FDIC will implement its resolution process by which qualified bidders may seek to acquire the assets and assume the liabilities of the failing institution.
While qualified bidders participate in the resolution process for a variety
of strategic reasons, a successful resolution can provide a seamless transition for depositors and borrowers. Qualified financial institutions may consider pursuing a failing bank acquisition for the following reasons:
- Growth - An acquirer may grow its customer base with a stable funding source.
- Purchase Earning Assets - The transactions often include a portfolio of quality loans to customers in the local market. Additionally, the acquirer assists the FDIC to resolve assets in a more efficient manner.
- Expand in Existing Markets or Enter New Markets - Acquirers assume deposits, but have the flexibility to select the offices to remain open beyond a year. The acquisition may allow the acquirer to increase locations in their desired footprints.
- Economic Stability - Help minimize the adverse effects of an institution's failure on a community by maintaining access to full service banking.
For more information, contact:
Toll-Free Number - (800) 568-9161
Main Number - (214) 754-0098
FDIC
Division of Resolutions and Receiverships
Franchise Marketing
1601 Bryan Street, Suite 1410
Dallas, TX 75201-3479
Bank and Thrift Failures 2007 to 2016
Regulatory Guidance
The FDIC, as deposit insurer, reviews the qualifications of potential bidders, and coordinates with the applicable federal and state regulators throughout the review process. Potential bidders are advised to contact the applicable regulators early to ensure timely reviews and determinations, as the marketing process for failing financial institutions is short.
Learn more about Regulatory qualifications in order to successfully complete a failed bank acquisition.
Regulatory Application Links:
Marketing Process
Learn more about how the Franchise Marketing process works.
Press Releases
view allToday's Bank, Huntsville, AR Assumes All of the Deposits of Allied Bank, Mulberry, AR.
September 23, 2016
United Bank, Zebulon, GA Assumes All of the Deposits of The Woodbury Banking Company, Woodbury, GA.
August 19, 2016
The Bank of Fayette County, Piperton, TN, Assumes All of the Deposits of Trust Company Bank, Memphis, TN
April 29, 2016
First-Citizens Bank & Trust Company, Raleigh, NC, Assumes All of the Deposits of North Milwaukee State Bank, Milwaukee, WI
March 11, 2016
Twin City Bank, Longview, WA Assumes All of the Deposits of Hometown National Bank, Longview, WA.
October 2, 2015
Bid Lists
Learn more about how to get included on a Franchise Marketing Bid List.
Potential Franchise Bidder Contact Form
Useful Links
The links below can assist you in submitting a FOIA request, researching historical failed bank transactions or referencing the FDIC's Resolutions Handbook.