Finance news

Clayton-based Enterprise Bank & Trust has agreed to acquire the assets and deposits of a small Arizona bank that failed on Friday.

Valley Capital Bank in Mesa, Ariz., was closed Friday by state regulators.

The Federal Deposit Insurance Corp. was appointed as receiver. However, the FDIC reached an agreement with Enterprise Bank.

Valley Capital’s single branch in the Phoenix suburb will reopen Monday as a branch of Enterprise.

Enterprise paid the FDIC a 2-percent premium for the right to assume all the deposits of Valley Capital, the FDIC said. Enterprise agreed to purchase "essentially all" of the bank’s failed assets. Full details on the transaction were not available.

Valley Capital Bank had assets of about $40.3 million and total deposits of about $41.3 million as of Sept. 30.

As part of the deal, the FDIC and Enterprise Bank entered a loss-share agreement on about $30 million of Valley Capital’s assets, meaning the FDIC would absorb 80 percent of losses on loans and foreclosed properties.

The acquisition is small compared to Enterprise’s size, which is about $2.5 billion in assets. But it allows the bank to expand in Arizona, where Enterprise already has a loan production office in Phoenix easy payday loans.

Last year, Enterprise applied to open retail banking in Arizona, but the state’s banking regulators curtailed new charter approvals due to troubles in the Arizona real estate market. The bank later withdrew its application.

The deal "allows us now to operate as a full-service bank in Arizona through our new Enterprise Bank & Trust location in Mesa," Peter Benoist, President and CEO of Enterprise Financial Services Corp., the parent of Enterprise Bank, said in a statement. "Also, it enables us to open additional Enterprise locations in the greater Phoenix area, subject to the normal regulatory approvals."

Currently, Enterprise Bank has 11 branches in the St. Louis and Kansas City metro areas.

Besides Valley Capital Bank, the FDIC also on Friday took over Overland Park, Kan.-based SolutionsBank and Miami-based Republic Federal Bank. Those operations were acquired by other banks. The three failures brought the number of FDIC-insured institutions to fail in the nation this year to 133.

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