The Federal Deposit Insurance Corporation has taken over the Texas Community Bank NA in Woodlands, TX. This becomes the 24th bank failure across the country where the FDIC has had to step in to take over a bank and its assets.
FDIC Takes Over 24th Bank This Year[caption id="attachment_90865" align="alignleft" width="300"] Texas Community Bank NA in Woodlands, TX has been closed by the FDIC.[/caption] On Friday December 13, 2013 the Texas Community Bank NA was closed by the Office of the Comptroller of the Currency, and handed over to the FDIC. No notice was, or is given in advance to any of the bank’s customers prior to the take over. The FDIC did release a statement in which they have reassured the bank’s customers that their deposits are being guaranteed and insured. Additionally, the bank will continue to operate under the new care, so there is no need for customers to switch banks. This scare might still unnerve some people, and cause them to switch financial institutions anyhow.
This bank’s failure was not a major hit to the FDIC, as it will only have an estimated impact of between $10 and $11 Million on the Deposit Insurance Fund. As a result, most of the assets have been assumed by the FDIC as well as all $142.6 Million of the bank’s customers deposits. This may be the acquisition with the lowest financial impact this year, but this is probably not the end of small bank failures across the country. Many smaller financial institutions are still struggling to keep business going as usual.
The list of banks that are failing keeps growing by the month lately, as has been the trend since roughly 2005. This past year does seem to be a bit worse off than some of the others, but the closure of these small banks has hardly made an impact on the national news. The more and more of these banks that continue to close under financial pressure, the more people will be forced to deposit their money in larger institutions rather than community banks.
If you would like to see a complete list of bank failures that have occurred since 2005, you can click this link.
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FDIC Takes Over 24th Bank This Year.