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Regulators Close Southern Colorado National Bank Branches

The bank's branches to reopen as branches of Legacy Bank

Southern Colorado National Bank was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, FDIC entered into a purchase and assumption agreement with Legacy Bank in Wiley, Colorado, to assume all of the deposits of Southern Colorado National Bank.

The two branches of Southern Colorado National Bank are expected to reopen as branches of Legacy Bank. Depositors of the bank will automatically become depositors of Legacy Bank and the deposits will continue to be insured by the FDIC. Customers should continue to use their existing branch until they receive notice from Legacy Bank that it has completed systems changes to allow other Legacy branches to process their accounts as well.

As of September 4, 2009, Southern Colorado National Bank had total assets of $39.5m and total deposits of approximately $31.9m. Legacy Bank is expected to pay the FDIC a premium of 1% to assume all of the deposits of Southern Colorado National Bank. In addition to assuming all of the deposits, Legacy Bank agreed to purchase essentially all of the assets. The FDIC and Legacy Bank entered into a loss-share transaction on approximately $25.5m of Southern Colorado National Bank’s assets.