Texas Community Bank, The Woodlands, Texas, Becomes 24th Bank Failure of 2013

Texas Community Bank, National Association, The Woodlands, Texas, was closed today by the Office of the Comptroller of the Currency.  The FDIC, appointed as receiver for the failed bank, sold Texas Community to Spirit of Texas Bank, College Station, Texas, which will assume all deposits of the failed bank.

Founded in September 2002, Texas Community Bank was relatively small with only two branches and $160.1 million in assets at the time of closing.  The failed bank’s branches will reopen as branches of Spirit of Texas Bank.  All depositors of Texas Community Bank will automatically become depositors of Spirit of Texas Bank with uninterrupted FDIC deposit insurance coverage up to the applicable limits.  Over the weekend Texas Community Bank depositors will have full access to their money through the use of checking accounts and by using debit cards or ATM.

At September 30, 2013, Texas Community Bank had total assets of $160.1 million and $142.6 million in deposits.  In addition to assuming all deposits, Spirit of Texas Bank will purchase $147.9 million of the failed bank’s assets with the remainder to be retained by the FDIC for later disposition.

The number of bank failures during 2013 has declined significantly from the prior year.  During 2012 there were 51 bank failures compared to a year to date total of 24 for 2013.  Bank failures have now declined for three years in a row since 2010 when there were 157 bank failures.  The summary below shows the total number of bank failures since the beginning of the financial crisis in 2008.

Banking Failures Since 2008

Year           Number of Bank Failures

2008              25

2009            140

2010            157

2011              92

2012              51

2013               24

Total            489

The estimated cost to the FDIC Deposit Insurance Fund for the failure of Texas Community Bank is $10.8 million.  The total number of bank failures for 2013 now totals 24, less than half of last year’s 51 bank failures.  Texas Community Bank is the second bank failure in Texas this year after the closing of First National Bank, Edinburg, on September 13, 2013.