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FDII NEWS RELEASE F£DfltAL Dfl'OSIT INSURANCE CORPORATION PR-197-88 (10-27-88) FOR IMMEDIATE RELEASE FDIC APPROVES DEPOSIT ASSUMPTION OF MEDICAL CENTER STATE BANK, OKLAHOMA CITY, OKLAHOMA The Board of Directors of the Federal Deposit Insurance Corporation has approved the assumption of the deposits and fully secured liabilities of Medical Center State Bank, Oklahoma City, Oklahoma, by American State Bank, Tulsa, Oklahoma. The failed bank's sole office will reopen on Friday, October 28, 1988, as a branch of American State Bank and its depositors automatically will become depositors of the assuming bank, subject to approval by the appropriate court. Medical Center State Bank, with total assets of about $8.6 million, was closed on Thursday, October 27, 1988, by Wayne H. Osborn, Oklahoma Bank Commissioner, and the FDIC was named receiver. American State Bank will accounts assume about $8.4 million and has agreed to pay the FDIC a purchase premium of $50,000. also will purchase $6.8 million of the $358,000 in 4,500 deposit in small loans. failed bank's It assets, including To facilitate the transaction the FDIC will initially advance $1.6 million to the assuming bank and will retain assets of the failed bank with a book value of $1.8 million. The Board of Directors approved the deposit assumption under its authority to do so whenever it determi~es that such a transaction will reduce the potential loss to the FDIC. to the FDIC than Additionally, The transaction will result in a lower cost if the assets were held and liquidated in receivership. because the assets American State Bank, the failed and deposits will be administered by bank's customers will have the benefit of continuous, uninterrupted service. ### FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202-898-6996
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