Bank of Sierra Blanca closes in Texas

Bank of Sierra Bianca

closes in Texas

Insured deposits of Bank of Sierra Blanca, Tex., are being assumed by Security State of Pecos, Tex. The Sierra Blanca bank was closed by regulators Jan. 18.

The failed bank has $10.8 million in assests and $9.8 million in deposits. Security State of Pecos is assuming approximately $9.1 million of insured deposits. The failed bank has some $720,000 in deposits exceeding the federal deposit limit when it was closed.

Security State is paying the FDIC a premium of $218,000 to assume the deposits and to purchase approximately $3.5 million of the failed bank's assets. The FDIC, as receiver, will retain the remaining assets for later disposition.

The FDIC estimates the cost of this transaction to the Bank Insurance Fund to be $1.4 million. This was the second FDIC-insured institution to fail this year and the first in Texas since mid-1999.