Failing Bank Acquisitions
The FDIC markets troubled institutions to healthy insured depository institutions. The FDIC is statutorily required to resolve failed institutions using the least costly resolution option minimizing losses to the Deposit Insurance Fund. 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 before failure 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.
Bid Lists
Learn more about how to get included on a Franchise Marketing Bid List.
Bid lists include banks that meet regulatory, asset size, and geographic requirements. Please indicate two contacts to receive notification of an acquisition opportunity if your bank qualifies for a specific bid list.
Potential bidders must maintain adequate supervisory ratings in all areas and have sufficient assets relative to a failing bank to be included on a bid list.
For more information, contact:
InstitutionSales@fdic.gov
Toll-Free Number - (800) 568-9161
Main Number - (214) 754-0098
FDIC
Division of Resolutions and Receiverships
Franchise Marketing
1601 Bryan Street
Dallas, TX 75201-3479
Marketing Process
Learn more about how the Franchise Marketing process works.
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:
Press Releases
Legend Bank, N.A., Bowie, TX, Acquires the Insured Deposits of The Enloe State Bank, Cooper, TX
May 31, 2019
Royal Savings Bank, Chicago, IL, Acquires the Insured Deposits of Washington Federal Bank for Savings, Chicago, IL
December 15, 2017
Conway Bank, Conway Springs, KS, Assumes All of the Deposits of The Farmers and Merchants State Bank of Argonia, Argonia, KS
October 13, 2017
United Fidelity Bank, fsb, Evansville, IN, Assumes All of the Deposits of Fayette County Bank, Saint Elmo, IL
May 26, 2017
Whitney Bank, Gulfport, MS Assumes All Transactional Deposit Accounts of First NBC Bank, New Orleans, LA.
April 28, 2017
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.
Bid Lists
Learn more about how to get included on a Franchise Marketing Bid List.
Bid lists include banks that meet regulatory, asset size, and geographic requirements. Please indicate two contacts to receive notification of an acquisition opportunity if your bank qualifies for a specific bid list.
Potential bidders must maintain adequate supervisory ratings in all areas and have sufficient assets relative to a failing bank to be included on a bid list.
Bank and Thrift Failures Since 2007
FDIC Videos
This video describes the FDIC Resolution Process from the notice of prompt corrective action through the closing.
This video explains the nature and benefits of Loss Sharing resolution transactions.