A Sioux City bank founded in 1923 was one of five banks closed by regulators on Friday evening. The closure marks the first bank failure in Iowa in nearly a decade.

Vantus Bank, which had $458 million in assets and $368 million in deposits, was closed by the Federal Deposit Insurance Corp., an independent agency tasked with maintaining stability and public confidence in the financial system.

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Great Southern Bank, a subsidiary of Great Southern Bancorp. Inc., entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and certain assets of Vantus. A such, all branches and offices of Vantus opened on Saturday as branches of Great Southern Bank.

Depositors of Vantus can continue to access their money by writing checks or using ATM or debit cards. Checks drawn on Vantus Bank will continue to be processed. Loan customers should continue to make payments as usual.

Missouri-based Great Southern Bank indicated that there were no plans to change interest rates or terms on Vantus retail cash deposits (CDs); however, customers may withdraw funds without penalty prior to maturity.

“We welcome Vantus Bank customers to Great Southern. Customers can be confident that their deposits are safe and readily accessible. It’s business as usual,” said Joseph Turner, chief executive and president of Great Southern. “Like Vantus Bank, Great Southern has served customers’ financial needs for 86 years with a deep commitment to building winning relationships.”

Vantus operated 15 locations with eight banking centers in northwest Iowa, a banking center in South Sioux City, Neb., and six offices in central Iowa, including four in the Des Moines market area.

First Federal Bankshares, Inc., also based in Sioux City, was the parent company of Vantus that announced earlier this year a $17.7 million quarterly loss. The news came in conjunction with the resignation of Levon Mathews as president and chief executive. The company had been notified by the Office of Thrift Supervision in May that was “significantly undercapitalized” and warned that it needed to return to a better level.

Great Southern assumes the $368 million in deposits at a premium of .5 percent. Additionally, Great Southern is purchasing approximately $332 million in loans and $6 million of other real estate owned (ORE) at a discount of $75 million. The loans and ORE purchased are covered by a loss share agreement between the FDIC and Great Southern that affords Great Southern significant protection. Under this agreement, the FDIC has agreed to cover 80 percent of the losses on the loans and ORE up to approximately $102 million, and 95 percent of losses that exceed that amount.

In addition, Great Southern will also be purchasing cash and certain marketable securities of Vantus. The Company anticipates recording this transaction under FAS 141(R) in the quarter ending Sept. 30. The financial statement effects of this transaction will be disclosed at a later date upon completion of further review and analysis.

“We were attracted to this acquisition because of the strong customer relationships Vantus Bank has formed through the years in these very attractive markets,” Turner said. “This acquisition further strengthens our company with the addition of a significant number of customer deposit accounts and expansion opportunities in Iowa. Before and after this acquisition, Great Southern’s capital ratios were well in excess of regulatory requirements to be considered ‘well capitalized’.”

With this acquisition, Great Southern will operate 71 retail banking centers in four states. In March the company acquired TeamBank, N.A. in a similar FDIC-assisted transaction and has integrated the two companies.

The Iowa closing was one of five that took place last week, bringing the 2009 total up to 89 bank closures. The latest round of closings impacted two banks in Illinois and one each in Arizona, Missouri and Iowa. All but one Illinois bank was purchased by another lending institution. Customers of the failed bank, however, will receive checks from the FDIC, which has insured bank deposits up to $250,000 since the Great Depression.

Customers who have questions about the transaction can phone the FDIC, 1-800-405-1439. Information is also available from the FDIC’s Web site. Customer service representatives are also available at local bank branch locations.