Saturday, December 14, 2013

Regulators Close Texas Community Bank; 24 Failures this Year

Here is the latest Texas news from The Associated Press

KRGV - ‎3 hours ago‎
WASHINGTON (AP) The Federal Deposit Insurance Corp. has taken over a small bank in The Woodlands. Texas Community Bank NA is the 24th bank failure in the country this year.
Regulators Close Texas Community Bank; 24 Failures this Year
Regulators close bank in Texas
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Regulators Close Texas Community Bank; 24 Failures this Year
Regulators have closed Woodlands, Texas based Texas Community Bank on Friday, taking the total number of bank failures across US to 24.  Texas Community Bank operated two branches and was having $160 million in assets. The bank was managing deposits worth $142 million as per September data.
The deposit accounts were transferred by authorities to Spirit of Texas Bank SSB. Deposit consumers will be able to operate their accounts with the new bank with immediate effect. Spirit of Texas Bank SSB will take over the control of two branches of the closed bank and they will operate under new name from Monday onwards.
Spirit of Texas Bank will also take over $148 million failed bank's assets. Some more assets will be retained by FDIC to be disposed-off later. FDIC will have to bear $10.8 million bill for the closure of the failed bank.
In year 2009, 140 banks were closed in United States. In 2010, the number surged to 157 banks. The number has been falling over the past three years. The reduction in bank closures point to improved economic conditions in the country. AS per FDIC estimates, the bank closures would cost deposit insurance fund $10 billion within year 2012 and 2016.
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Regulators Close Texas Community Bank; 24 Failures this Year

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