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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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One Small Texas Bank is Closed by Regulators


One Small Texas Bank is Closed by Regulators

Just one small bank failed this Friday. First International Bank in Plano, Texas was the 74th bank in the nation to be closed this year. At this time last year, there had been 129 bank failures for 2010.

This was the first bank failure in Texas for 2011. Texas banks have held up well since the 2008 financial crisis. There was only one Texas bank failure in 2010, and only 9 bank failures since 2008.

First International Bank was a typical bank failure for depositors. All deposits were assumed by another bank, American First National Bank, so no depositors lost any money, even money above the FDIC limit. American First National Bank has not made a decision on interest rates of existing CDs. There's no mention of the acquisition on its website, and the FDIC's Q&A has the typical note regarding CD rates:

Interest on deposits accrued through close of business the day the bank was closed will be paid at your same rate. Current rates will be reviewed by the new bank and may be lowered; however, you may withdraw funds from any transferred account without early withdrawal penalty until you enter into a new deposit agreement.

This week there were no credit union liquidations or credit unions placed into NCUA conservatorship. So far this year there have been 12 credit union liquidations and 10 credit unions that have been placed into conservatorships.

Below is the summary of Friday's bank failure.

74th Bank Failure of 2011 (1st in Texas)

  • FDIC Press Release
  • Closed Bank: First International Bank, Plano, TX
  • Size: 7 branches, $239.9 million in assets, $208.8 million in deposits
  • Acquiring Bank: American First National Bank, Houston, TX
  • Possible Uninsured Deposits: All deposit accounts, including brokered deposits, have been assumed by American First National Bank
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $53.8 million
  • Enforcement Action: FDIC 3/23/10 Consent Order, FDIC 4/5/11 PCA
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 266.26% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com & DepositAccounts.com, Texas Ratios over 100% is considered at risk. DepositAccounts.com and BauerFinancial ratings are based on June 2011 data. Bankrate ratings are based on March 2011 data.


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NCC 1701
NCC 1701   |     |   Comment #2
Why should banks ever raise interest rates the more that close the less compe****ion there is  as a retired professor  of economics from Harvard this would seem the way banks will proceed