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Small Bank In Kansas Fails

Summary

Fed Reports DIF will be $2.6 Million

The two branches of Farmers and Merchants State Bank of Argonia, Kansas were closed with Conway Bank, Conway Springs, Kansas, to assume all of the deposits. Conway Bank will pay the FDIC a premium of 2.5 percent to do so. In addition to assuming all of the deposits of The Farmers and Merchants State Bank of Argonia. In addition to assuming all of the deposits of the failed bank, Conway Bank agreed to purchase essentially all of the assets. This is the seventh FDIC-insured institution to fail this year.  The bank was established October 1, 1901 and had 16 employees as of June 30, 2017. In, 1957, an insurance agency became part of the bank.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.6 million.

(in millions, unless otherwise)

Net Equity  
 
2006 $1.2
2007 $1.5
2008 $1.7
2009 $1.9
2010 $1.9
2011 $2.2
2012 $2.4
2013 $2.5
2014 $2.8
2015 $2.8
2016 $2.3
6/17 $984,000
9/17 -$361,000
   
Profit  
 
2006 -$507,000
2007 -$138,000
2008 $46,000
2009 $142,000
2010 $99,000
2011 $160,000
2012 $305,000
2013 $537,000
2014 $217,000
2015 $78,000
2016 -$386,000
6/17 -$1.4
9/17 -$2.7
   
   
Non-Current Loans
 
2006 $2.0
2007 $308,000
2008 $2,000
2009 $37,000
2010 $1.5
2011 $45,000
2012 $41,000
2013 $106,000
2014 $38,000
2015 $399,000
2016 $3.7
6/17 $3.6

Charge Offs

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans (non-owner occupied).

2006 - $374,000 ($371,000 commercial/industrial loans, $3,000 loans to individuals)
2007 - $59,000 ($39,000 commercial/industrial, $20,000 individuals)
2008 - $38,000 ($40,000 individuals, -$2,000 commercial, industrial)
2009 - $46,000 ($25,000 1-4 family residential, $15,000 individuals, $6,000 commercial/industrial)
2010 - $244,000 ($244,000 commercial/industrial, $10,000 individuals, -$10,000 1-4 family residential)
2011 - $195,000 ($197,000 commercial/industrial, -$2,000 individuals)
2012 - $30,000 (-$32,000 commercial industrial, $4,000 auto loans, -$2,000 individuals)
2013 - $316,000 ($7,000 auto loans, $2,000 consumers, -$325,000 commercial industrial
2014 - $25,000 ($17,000 autos, $14,000 individual, $11,000 1-4 family, -$3,000 other consumer-report)
2015 - $28,000 ($12,000 autos, $10, individuals, $18,000 1-4 family resident, -$2,000 other consumer-report)
2016 - $70,000 ($33,000 autos, $24,000 1-4 family, $5,000 other nonfarm residential, -$2,000 commercial/ind.)
6/17 - $1.0  ($843,000 other loans, $87,000 consumer loans, $60,000 commercial loans, $44,000 nonfarm nonres. $44,000,
   Construction/land $19,000 construction/other land $19,000)
9/17 - $1.8  ($1.6 other loans, $95,000 commercial/industrial,$88,000 credit cards, 44,000 non-farm/nonresidential, $19,000 other construction loan)


In May, 2105, S. Rene Drouhard Brozovich was promoted from Executive Vice President of the Bank to the position of president. According to the Wellington Daily News, "She went to work full time at Farmers & Merchants State Bank in August, 1985 and has since then been employed continuously at the bank. She is a licensed insurance agent, and has been chief lending officer, compliance officer and board secretary...Drouhard Brozovich succeeds Leon A. Drouhard, who resigned the position of president in March of this year after holding that position since March, 1981. Leon Drouhard will remain chairman and CEO. On March 25, 2015, Leon Drouhard completed 50 years in banking, all with The Farmers & Merchants State Bank of Argonia."
F&M Bank of Argonia gets new president

History of the Bank:
http://www.leasingnews.org/PDF/
History%20of%20Merchants%20State%20Bank%20of%20Angoira.pdf

According to Wikipedia, "Argonia was founded in 1881. It was named for the ship Argo in Greek mythology. [7] (The city’s claim to fame): In 1887, Susanna M. Salter became the first woman to win political office in United States history when she was elected Mayor of Argonia as a member of the Prohibition Party...As of the census [2] of 2010, there were 501 people, 216 households, and 135 families residing in the city… The median income for a household in the city was $30,125."

FDIC Press Release:
http://www.leasingnews.org/Ads/Completed/LeasePolice5.htm

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.