First Top 40 Failures of the new quarter

35th-ranked First National Bank of Edinburg, Texas, was closed today by the OCC. Significantly larger than most recent failures, the approximately $3.1 billion bank (by total assets) was largely acquired under a purchase and assumption agreement by PlainsCapital Bank (5544th) of Dallas, Texas. In addition to assuming all of the $2.3 billion in total deposits of First National Bank, PlainsCapital Bank agreed to purchase approximately $2.7 billion of First National Bank's assets. The acquisition includes a loss-share transaction on $1.8 billion of these assets. In all, the FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $637.5 million.

39th-ranked Community's Bank of Bridgeport, Connecticut has become the first bank of new quarter to fail. The bank was closed today by state regulators. This was the first Connecticut based bank to fail since 2002 and the first in many months for which an acquirer of the banks assets and deposits could not be found. The very small bank had approximately $26.3 million in total assets and $25.7 million in total deposits as of its June call report. The FDIC estimates that the cost to the DIF will be $7.8 million.