{
  "p": "ons",
  "op": "post",
  "title": "Failing Bank Acquisitions",
  "url": "https://www.fdic.gov/buying/franchisemarketing/",
  "author": "Federal Deposit Insurance Corporation (FDIC)",
  "body": "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.\n\nRecapitalization 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.\n\nWhile 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:\n\n-   **Growth**  – An acquirer may grow its customer base with a stable funding source.\n-   **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.\n-   **Expand in Existing Markets or Enter New Markets**  – Acquirers assume deposits, but have the flexibility to select the offices to remain open beyond 90 days. The acquisition may allow the acquirer to increase locations in their desired footprints.\n-   **Economic Stability**  – Help minimize the adverse effects of an institution's failure on a community by maintaining access to full service banking.\n\n## For more information, contact:\n\n[InstitutionSales@fdic.gov](mailto:InstitutionSales@fdic.gov)  \nToll-Free Number - (800) 568-9161  \nMain Number - (214) 754-0098  \n  \nFDIC  \nDivision of Resolutions and Receiverships  \nFranchise Marketing  \n600 North Pearl Street,  \nDallas, TX 75201  \n\n## Marketing Process\n\nLearn more about how the Franchise Marketing process works.\n\n> -   [Process Overview](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#processOverview)\n> -   [Transaction Terms](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#transactionTerms)\n> -   [Virtual Data Room](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#virtualData)\n> -   [Due Diligence](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#dueDilligence)\n> -   [Alliance Bidding](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#allianceBidding)\n> -   [Frequently Asked Questions](https://www.fdic.gov/buying/franchisemarketing/marketing-process.html#faq)\n\n## Receivership Settlement Process\n\nLearn more about the Receivership Settlement process.\n\n> -   [Process Overview](https://www.fdic.gov/buying/franchisemarketing/receivership-settlement.html#processOverview)\n> -   [Frequently Asked Questions](https://www.fdic.gov/buying/franchisemarketing/receivership-settlement.html#faq)\n> -   [Demo Video of the Receivership Banker Portal for Acquiring Institutions](https://youtu.be/rKKCk9EpyYU)\n\n## Regulatory Guidance\n\nThe 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.\n\nLearn more about Regulatory qualifications in order to successfully complete a failed bank acquisition.\n\n> -   [Applications for Deposit Insurance](https://www.fdic.gov/regulations/applications/depositinsurance/index.html)\n> -   [Applying for Deposit Insurance, A Handbook for Organizers of De Novo](https://www.fdic.gov/regulations/applications/handbook.pdf)\n\n**Regulatory Application Links:**\n\n> -   [Office of the Comptroller of the Currency (OCC) Licensing - Application Contacts](https://www2.occ.gov/topics/charters-and-licensing/licensing-office-contacts.html)\n> -   [Federal Reserve Board - Applications](http://www.federalreserve.gov/bankinforeg/afi/afi.htm)\n> -   [Conference of State Bank Supervisors](https://www.csbs.org/)\n\n## Recent Bank Failures\n\n[Signature Bank, New York, NY](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/signature-ny.html)  \nMarch 12, 2023\n\n[Silicon Valley Bank, Santa Clara, CA](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/silicon-valley.html)  \nMarch 10, 2023\n\n[Almena State Bank, Almena, KS](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/almenastate.html)  \nOctober 23, 2020\n\n[First City Bank of Florida, Fort Walton Beach, FL](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/firstcitybank.html)  \nOctober 16, 2020\n\n[The First State Bank, Barboursville, WV](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/fsb-wv.html)  \nApril 3, 2020\n\n[Ericson State Bank, Ericson, NE](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/ericsonstate.html)  \nFebruary 14, 2020\n\n[View all Bank Failures](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/ \"View All Bank Failures\")\n\n## Useful Links\n\nThe links below can assist you in submitting a FOIA request, researching historical failed bank transactions or referencing the FDIC's Resolutions Handbook.\n\n> -   [Community Banking Initiatives](https://www.fdic.gov/regulations/resources/cbi/index.html)\n> -   [Failed Bank List](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/index.html)\n> -   [FOIA Service Center - Electronic Request](https://www.securerelease.us/)\n> -   [Failed Financial Institution Bid Disclosure Policy](https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/biddocs.html)\n> -   [FDIC - Resolutions Handbook](https://www.fdic.gov/resources/resolutions/bank-failures/reshandbook/index.html)\n> -   [FFIEC - Community Reinvestment Act](http://www.ffiec.gov/cra/default.htm)\n> -   [Managing the Crisis](https://www.fdic.gov/bank/historical/managing/index.html)"
}