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Paola-based TeamBank became the 20th FDIC-insured institution to fail in the nation this year and the first in the state when the Office of the Comptroller of the Currency closed the bank Friday and appointed the Federal Deposit Insurance Corporation as receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Southern Bank based in Springfield, Mo., to assume all the deposits of TeamBank.
The 17 offices of TeamBank reopened on Saturday as branches of Great Southern Bank, and depositors of TeamBank automatically became depositors of Great Southern Bank. Great Southern Bank was founded in 1923 and has 39 retail banking centers in Missouri along with loan production offices in St. Louis, Overland Park and Rogers, Ark.
“The work was done tonight, so we will have normal banking operations tomorrow (Saturday). We shut the ATMs down for an hour tonight to do some accounting work,” Scott E. Hammer, FDIC ombudsman, said Friday. “The ATMs are back up now. Normal banking operations will continue tomorrow. Checks will still clear and direct deposits will continue.”
It didn’t take long for TeamBank signs to be replaced with those of Great Southern Bank, and Monday morning the office on the northeast corner of Paola’s Park Square was swarming with customers with an array of questions. One person was questioning how the move would impact his trust fund, while another wanted to be sure his debit card was still active.
Several Great Southern officials, including President Joseph W. Turner, were in Paola on Monday to help with the transition.
Great Southern spokesperson Kelly Polonus said Monday the officials are working with existing TeamBank employees to answer their questions as well as those of the customers. She reiterated that from a customer standpoint there will be little change besides the name on the bank and a new logo on their statements.
“It’s business as usual,” Polonus said.
She added that the current plan is to maintain all of the TeamBank employees who work directly with the customers, but because of the early stages of the transition, she could not give a definite plan for every single employee.
TeamBank’s former Chief Executive Officer Sandy Moll deferred comment to Polonus on Monday. Polonus said Moll has been working well with Great Southern Bank officials.
“She’s been a great help,” Polonus said.
In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase about $656.5 million in assets at a discount of $100 million, and pay a 1 percent premium on deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC and Great Southern Bank entered into a loss-share transaction. The FDIC will share 80/20 percent in the losses with Great Southern Bank on about $450 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets and to minimize disruptions for loan customers.
If you had an account at TeamBank, customers will not receive any notification to claim, unlock or unsuspend account information. The bank is warning customers to be aware of scams asking for such information.
TeamBank was affiliated with Colorado National Bank, which also was closed Friday by the Office of the Comptroller of the Currency. The FDIC entered into a separate transaction with Herring Bank of Amarillo, Texas, to assume the banking operation of Colorado National Bank.
The FDIC also stated in a news release that the closure and receivership of TeamBank does not include shares owned in Team Financial Inc., which is TeamBank’s holding company.
“There was no publicly owned stock in TeamBank,” according to the release. “If you are an equity shareholder, your shares are in BHC Team Financial, Inc., Paola, Kansas, the holding company for TeamBank, N.A., and not the institution.”
Mike McCauley of Raymond James Financial Services at 6 W. Peoria St. also said Monday that although his business was affiliated with TeamBank, it continues to operate as normal.
There are several ways for customers to learn more about the transition and get their questions answered. Polonus encouraged customers to stop by or call the Paola office, where most questions should be able to be answered. They may also call the FDIC at 1-800-830-4697 or call Great Southern Bank’s home office at 1-800-749-7113. More information also is available on Great Southern’s Web site at www.greatsouthernbank.com.
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