Fayette-based bank acquires new assets

Published 12:00 am Saturday, June 5, 2010

WASHINGTON (AP) — A Fayette-based bank has agreed to acquire the assets and deposits of another Mississippi bank that was shut down by federal regulators Friday.

Jefferson Bank is assuming $60.4 million in assets from First National Bank, based in Rosedale.

In addition, the Federal Deposit Insurance Corp. and Jefferson Bank agreed to share losses on $43.5 million of the failed bank’s loans and other assets.

The FDIC took over First National Bank, and Arcola Homestead Savings Bank in Arcola, Ill., with about $17 million in assets.

The FDIC was unable to find a buyer for Arcola Homestead Savings Bank, and it approved the payout of the institution’s insured deposits. The agency said it will mail checks to depositors for their insured funds on Monday.

With 80 closures nationwide so far this year, the pace of bank failures is more than double that of 2009, which was already a brisk year for shutdowns.