Woodlands based Texas Community bank NA was closed and taken over by Federal Deposit Insurance Corporation (FDIC). Out of $160.1 million of bank's asset, $147.9 million of assets have been purchased by Spirit of Texas Bank.
On Friday December 13, 2013 Texas Community bank NA was closed by Office of the Comptroller of the Currency and same has been handed over to FDIC. No prior notice was given to any of bank's customer. Although FDIC issued a notice reassuring all customers of bank regarding the safety of their assets. All deposit accounts are immediately transferred to College Station based Spirit of Texas Bank SSB. All the branches of Texas Community bank will reopen as branch of Spirit of Texas Bank, which has 8 locations in Houston area.
As of September 30, 2013 Texas Community bank had $160.1 million in total assets and $142.6 million in total deposits. Spirit of Texas Bank has agreed to purchase $147.9 million of failed assets of former bank. The rest will be taken over by FDIC. Although it is not a major set-back for FDIC, as it have only $10-11 million impact on deposit insurance fund.
But the small impact is not the end of the story. This is 24th bank in this year to be taken over by FDIC. Apart from community banks there are many small financial institutions that are struggling to operate. So now the future lies in big institutions. Can we see more consolidation in near future ?
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