New Mexico Bank Becomes 80th Failure in 1985
ROSWELL, N.M. (AP) _ Moncor Bank of Roswell on Thursday became the 80th U.S. bank to fail this year, eclipsing the record 79 bank failures in 1984, a Federal Deposit Insurance Corp. official said.
The bank, closed after being declared insolvent by Deputy U.S. Comptroller of the Currency Michael Patriarca, was the second Moncor Bank in southeastern New Mexico to fail within the last two weeks.
Moncor Bank of Hobbs was closed Aug. 30 after being declared insolvent.
The Roswell bank was the last of six banks held by Moncor Inc., which filed for reorganization under Chapter 11 of the Federal Bankruptcy Code on Aug. 29. Moncor Inc. once was the third-largest bank holding company in New Mexico.
Albuquerque Federal Savings and Loan Association took control of Moncor’s banks in Rio Rancho, Ruidoso and Carlsbad in early August as collateral on a loan. The holding company sold its Albuquerque bank to local directors and a Texas banker in July.
Patriarca said in a statement from Washington, D.C., that the FDIC was appointed receiver of the Roswell bank.
The bank’s deposit liabilities were assumed by First National Bank of Chaves County, a newly chartered national bank insured by the FDIC, said Steve Katsanos, assistant corporate communications officer for the FDIC in Washington, D.C.
The FDIC insures member bank deposits of up to $100,000.
The Roswell bank will reopen Friday and its depositors automatically will become depositors of First National Bank of Chaves County, ″pending approval by the appropriate court,″ Katsanos said.
As of Tuesday, the Moncor Bank of Roswell had assets of approximately $32 million and deposits of $24 million, Patriarca said.