FDIC appointed receiver for failed Texas Community Bank

150px-US-FDIC-Logo.svgThe OCC recently appointed the FDIC as receiver for failed Texas Community Bank NA based in Woodlands, Texas—the 24th FDIC-insured institution to fail this year.

The FDIC entered into a purchase and assumption agreement with Spirit of Texas Bank to assume all deposits of Texas Community. The bank’s two branches will reopen as Spirit of Texas branches, and depositors will automatically become Spirit of Texas depositors.

Texas Community customers can access their funds by writing checks or using their ATM and debit cards, and loan customers are expected to make their payments as usual.

As of Sept. 30, Texas Community had $160.1 million in assets and $142.6 million in deposits. Spirit of Texas agreed to purchase $147.9 million—approximately 92 percent—of the failed bank’s assets, in addition to assuming all of the deposits.

The FDIC estimates the bank’s failure will cost the Deposit Insurance Fund $10.8 million. The last institution closed in Texas was the First National Bank based in Edinburg, Texas, in September.

Since the peak of bank failures in 2010, the number of failed institutions has been on the decline. In 2010, 157 U.S. banks failed, followed by 92 in 2011 and 51 in 2012.

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