Salina The sale of 19 branches of People's Heritage Savings & Loan of Salina to 16 banks and thrifts in Kansas has been approved by the Resolution Trust Co. of Washington, D.C., the RTC announced Friday.
Most of the failed institution's retail branches are scheduled to reopen Tuesday as branches of the 16 financial institutions.
Peoples State Bank, Topeka and Rossville, assumed $62 million in deposits of the insolvent branches in Topeka and Silver Lake.
People's Heritage held about $606 million in brokered deposits. Those deposits will not be transferred but will be paid out directly.
Administration of the transferred insured deposits will be financed by an equivalent cash payment from the RTC. The RTC is a federally chartered corporation that manages failed savings associations and recovers funds through the management and sale of an institution's assets.
Excluding brokered deposits raised by its money desk, People's Heritage had deposits of about $680 million in 95,034 accounts. It is believed that deposits of $867,000 are uninsured. Owners of these uninsured deposits will share proportionately with all other unsecured creditors in the proceeds from the sale of the failed institutions' assets.