U.S. federal regulators close First International Bank in Texas

[News_Editor]

U.S. federal regulators close First International Bank in Texas

2011-10-01 21:52:13 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Federal regulators on Friday evening closed the First International Bank in Texas, raising the total number of bank failures in the United States so far this year to 74.

The bank, which had its headquarters in the city of Plano in Texas and had a total of seven branches in Texas and Nevada, was closed by the Texas Department of Banking after its regular closing time on Friday. It appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

The FDIC immediately entered into a purchase and assumption agreement with the American First National Bank in Houston to assume all of the deposits of First International Bank.

Most customers should see no or little service disruptions despite the closure of the institution as the First International Bank's seven branches will reopen on Saturday during normal business hours as branches of American First National Bank, and all depositors of First International Bank will automatically become depositors of American First National Bank.

"Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits," the FDIC said in a statement. "Customers of First International Bank should continue to use their existing branch until they receive notice from American First National Bank that it has completed systems changes to allow other American First National Bank branches to process their accounts as well."

All of the services of the failed bank, including checks, ATM and debit cards, will remain active. "Checks drawn on the bank will continue to be processed," the FDIC said. "Loan customers should continue to make their payments as usual."

As of June 30, First International Bank had approximately $239.9 million in total assets and $208.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, American First National Bank agreed to purchase essentially all of the assets.

The FDIC estimated that the cost to the Deposit Insurance Fund (DIF) as a result of the bank failure will be around $53.8 million, but said it was the least costly resolution for the DIF compared to other alternatives.

The closure bring the total number of U.S. bank failures so far this year to 74. It follows the closings of the Tri Counties Bank and the Southern Bank and Trust Company in California and Virginia on September 23.

There were 157 bank failures in 2010.

-- © BNO News All rights reserved 2011-10-01

[gk10002000]

Small potatoes. Unfortunately the tax payers foot the bill for the shortfall. And the bank executives just move on. I am sure they all made decent salaries the last few years while the bank was losing money or running down to a negative net worth. Must be nice always playing with OPM, Other People's Money