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One more bank closed in US

01 October 2011 11:27 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Texas regulators closed First International Bank of Plano, bringing the nationwide tally of bank failures to 74 for the year.

The Federal Deposit Insurance Corp. said the bank was shut Friday by the state’s Department of Banking. American First National Bank of Houston agreed to take over the failed bank and its seven branches; it agreed to acquire all of the bank’s deposits and to buy substantially all of its assets as part of a purchase-and-assumption deal with the FDIC.

First International Bank had about $239.9 million in total assets and $208.8 million in total deposits at the end of June.

The FDIC estimates that the cost of the failure to the Deposit Insurance Fund will reach $53.8 million.

First International is the first bank failure in Texas this year. The last FDIC-insured institution closed in the state was LaCoste National Bank in February 2010.

The average size of banks that fail has shrunk significantly since the financial crisis, but the pace of failures has picked up slightly recently. Some 26 banks failed in the third quarter, the same as in the first, but the number had dropped to 22 in the second quarter.

Depositors of the failed bank will automatically become depositors of the new bank and deposits will continue to be insured by the FDIC. The FDIC insures deposits for up to $250,000 per depositor.