The Office of the Comptroller of the Currency (OCC) has closed the Santa Anna National Bank of Santa Anna, Texas.
The OCC appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, and the FDIC entered into a purchase and assumption agreement with Coleman County State Bank of Coleman, Texas. Coleman County State bank will assume the insured deposits and some of the assets of the failed institution.
The Santa Anna National Bank’s sole office reopened on June 30 as a branch of Coleman County State Bank. Depositors of the failed bank will automatically become depositors of Coleman County State Bank. The insured deposits assumed by Coleman County State Bank will continue to be insured by the FDIC. Thus, there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
Further, all Coleman County State Bank customers who were formerly with the Santa Anna National Bank will have access to their insured deposits and can write checks or use their ATM or debit cards up to their insured limits. Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual.
As of June 18, the Santa Anna National Bank had total assets of $63.8 million and total deposits of $53.8 million.
Approximately $2.8 million of the deposits exceeded FDIC insurance limits, an amount that is likely to change once the FDIC obtains additional information from customers. Once further information is available, the FDIC will consider whether to provide uninsured depositors an advance dividend — that is, access to a portion of their uninsured funds.
Coleman County State Bank agreed to assume the insured deposits for a 5.16 percent premium. The FDIC will retain a large portion of the assets of the Santa Anna National Bank for later disposition.
Customers with accounts greater than $250,000 should contact the FDIC toll-free at 1-866-314-1744 to set up an appointment to discuss their deposits.
According to preliminary estimates by the FDIC, the bank failure will cost its Deposit Insurance Fund (DIF) about $23.7 million.
The Santa Anna National Bank is the second bank to fail this year. The last bank failure was Pulaski Savings Bank of Chicago on Jan. 17. The last Texas bank to fail was the Enloe State Bank of Cooper on May 31, 2019.