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Texas Community Bank closed

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Spirit of Texas Bank assumed all of the deposits of Texas Community Bank, which the government closed Friday.

Texas Community Bank closed
Olivia Pulsinelli[1]
Web producer- Houston Business Journal
This email address is being protected from spambots. You need JavaScript enabled to view it.[2]  | Twitter[3]  | Google+[4]

The Woodlands-based Texas Community Bank[5] NA was closed Friday by the Office of the Comptroller of the Currency[6], and the Federal Deposit Insurance Corp.[7] was named the receiver.

All deposit accounts were transferred to College Station-based Spirit of Texas Bank[8] SSB and will be available immediately, according to a statement posted on Texas Community Bank's website[9]. The former Texas Community Bank locations will reopen as branches of Spirit of Texas during regular business hours, and Texas Community Bank depositors will automatically become depositors of Spirit of Texas, the FDIC said[10].

As of Sept. 30, Texas Community Bank had about $160.1 million in total assets and $142.6 million in total deposits.

Additionally, Spirit of Texas Bank agreed to purchase about $147.9 million of the failed bank’s assets, and the FDIC will retain the rest for later disposition. Spirit of Texas has eight locations in the Houston area, according to its website.

In late February, a Harris County court ruled Texas Community Bank was not liable for any damages in a $41 million lawsuit that has spanned three years. At the time, industry observers expected the resolution would help the struggling bank’s future prospects[11]. In recent years, the bank had an elevated Texas ratio — the level of nonperforming assets compared to the amount of equity it had to cover those assets.

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website. Follow her on Twitter for more[12].

References

  1. ^ Olivia Pulsinelli (feeds.bizjournals.com)
  2. ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
  3. ^ Twitter (twitter.com)
  4. ^ Google+ (plus.google.com)
  5. ^ Texas Community Bank (www.bizjournals.com)
  6. ^ Office of the Comptroller of the Currency (www.bizjournals.com)
  7. ^ Federal Deposit Insurance Corp. (www.bizjournals.com)
  8. ^ Spirit of Texas Bank (www.bizjournals.com)
  9. ^ Texas Community Bank's website (www.txcbtw.com)
  10. ^ the FDIC said (www.fdic.gov)
  11. ^ industry observers expected the resolution would help the struggling bank’s future prospects (www.bizjournals.com)
  12. ^ Follow her on Twitter for more (twitter.com)
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