The ""FDIC"":http://fdic.gov/ announced Friday the closure of two more banks--including Connecticut's first collapse in more than a decade--bringing this year's failure tally to 22 so far.[IMAGE]
The first of Friday's announcements involved the Community's Bank in Bridgeport, Connecticut, which was shut down by the Connecticut Department of Banking.
Because it was unable to find another financial institution to take over the failed bank's operations, FDIC will mail checks directly to the Community's Banks depositors for the amount of their insured money.[COLUMN_BREAK]
As of June 30, the Community's Bank held approximately $25.7 million in total deposits and possessed about $26.3 million in assets. FDIC will retain all the assets for later disposition. The Community's Bank was the first FDIC-insured institution to close in Connecticut since June 2002.
In Texas, the Office of the Comptroller of the Currency (OCC) closed First National Bank, based in Edinburg. To protect depositors, FDIC announced it has entered into a purchase and assumption agreement with ""PlainsCapital Bank"":https://www.plainscapital.com/personal-banking/pages/index.aspx in Dallas.
Under the agreement, PlainsCapital will assumed all of First National's $2.3 billion in deposits and will purchase $2.7 billion of the collapsed bank's $3.1 billion in assets.
In addition, FDIC and PlainsCapital entered into a loss-share transaction on $1.8 billion of First National's assets.
First National was the first Texas-based FDIC-insured bank to fail in nearly two years.
Together, the two collapses represent a cost of $645.3 million dollars--$7.8 million for the Community's Bank and $637.5 million for First National.