Late Friday regulators closed the Enloe State Bank in Cooper, Texas. This is the first bank failure in Texas in over five years. The FDIC (Federal Deposit Insurance Corporation) has sold the insured deposits and some of the assets of the bank to Legend Bank of Bowie, Texas. The FDIC has also stated that approximately $500,000 of the bank’s deposits exceeded the insured’s limits. Those customers who had accounts exceeding the $250,000 insured limit are encouraged to contact the FDIC at 1-888-408-4360 to schedule a time to file a claim.
All customers should experience no interruption in services, as the bank opened Monday morning as a branch of Legend Bank. Checks can still be written using current accounts. Customers with loans are encouraged to continue to make their loan payments as well. The acquiring bank purchased assets of about $5 million of the total $32 million that the bank showed in assets, leaving the FDIC to absorb the remaining $27 million in assets.
As the first bank closure recorded in the nation in the past 17 months, the failed bank is viewed as anamoly, and not a sign of a downturn in the economy.
The closing of the Enloe State Bank comes just four weeks after a fire was reported at the location. The investigation into that fire, that was determined to be “suspicious” by county officials, is being conducted by the Texas State Fire Marshall as well as the ATF.