32nd and 33rd Texas Bank Failures Of Year Reported
Jul. 02, 1987
DALLAS (AP) _ Two more Texas banks were closed by the state's banking commissioner Thursday, extending the state's string of bank failures this year to 33.
The two banks were identified as the Bank of Brazoria in Brazoria and Citizens Bank in Bryan, according to Kenneth W. Littlefield, Texas banking commissioner.
The Federal Deposit Insurance Corp. was named receiver in both cases.
The FDIC's board of directors approved the assumption of deposits of the Brazoria bank by the Moulton State Bank in Moulton, and Citizens Bank by United Bank-College Station, N.A., of College Station, according to FDIC spokesman Bill Olcheski.
The failed Bank of Brazoria's sole office will open Monday as a branch office of the Moulton State Bank, he said.
In the case of Citizens Bank, the bank's existing site was to be closed, and the assuming bank was to establish a new branch in Bryan, Olcheski said.
Bank of Brazoria had total assets of $25.2 million at the time of its closure, said Littlefield.
Moulton State Bank will assume $2.4 million in 4,300 deposit accounts and has agreed to pay the FDIC a premium of $260,000. Moulton State also will purchase certain assets worth $13.5 million, Olcheski said.
To facilitate the transaction, the FDIC will advance $10.4 million and retain assets of the failed bank with a book value of $1.7 million, he said.
Citizens Bank had total assets of $39.1 million, said Olcheski. United Citizens Bank was to assume about $36.3 million in 9,600 deposit accounts and agreed to pay the FDIC a purchase premium of about $5,000, Olcheski said.
Texas leads the nation in the number of failed banks while Oklahoma is second with 14. Last year Texas had 26 closed banks.