State Regulators Close Sun Security Bank

October 08 00:00 2011

New York, October 8 ( – State Regulators have closed Sun Security Bank, Ellington, Missouri and FDIC was appointed as receiver of the bank. This was the first banking failure in 2011 in the state. The last one took place in Missouri on October 15, 2010. The failed bank had 27 branches across Southern Missouri.

Sun Security was sold to Great Southern Bank, Springfield MO by the FDIC. All deposits of the failed bank will be assumed by Great Southern in order to protect depositors who will be able to access their money over the weekend through check writing or using debit cards or ATMs. All branches of Sun Security will reopen on Saturday for this purpose.

In April 2008, Sun Security was placed under heightened regulatory scrutiny and issued a cease and desist order in April 2008 by regulators, citing many financial and managerial weaknesses. The bank that was set up in 1970 faced many defaulting loans when the real estate value declined. Regulators had to resort to the above action when the bank’s troubled asset ratio rose above 300% and it was unsuccessful in raising additional capital.

Sun Security Bank had total assets of $355.9 million and total deposits of $290.4 million as on June 30, 2011. Great Southern Bank has agreed to take over all assets of Sun Security.