A financial institution near Houston failed last week, and the expected cost to the bank insurance fund is more than $10 million.
The Office of the Comptroller of the Currency reported Friday that it seized and closed down Texas Community Bank, N.A.
The Woodlands, Texas, bank was founded in 2002 and reported a staff of 26 employees as of Sept. 30.
Total assets of $160 million included $14 million in residential loans, $38 million in commercial mortgages and $19 million in construction-and-land-development loans.
“The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the regulator stated. “The OCC also found that the bank incurred losses that depleted its capital, the bank is critically undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized.”
The OCC handed over the failed bank to the Federal Deposit Insurance Corp. as receiver.
In turn, Spirit of Texas Bank, SSB, agreed to assume all of Texas Community’s $143 million in deposits and acquire $148 million of its assets.
The FDIC projects that the bank failure will cost its Deposit Insurance Fund $11 million.
Texas Community was the 24th FDIC-insured bank failure in 2013.