Sanderson State Bank Seized by Regulators: 25th Failure Of ’08

The FDIC announced another bank failure late Friday. The Sanderson State Bank of Sanderson, Texas, was closed by regulators making it the 25th U.S. bank failure of the year. The Pecos County State Bank, Fort Stockton, Texas, will assume all of Sanderson State Bank’s deposits, including those that exceeded the deposit insurance limit.

From the FDIC:

Sanderson State Bank, Sanderson, Texas, was closed today by the Texas Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver.
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Sanderson State Bank’s sole office will reopen on Monday as a branch of The Pecos County State Bank. All depositors of the failed bank will automatically become depositors of The Pecos County State Bank
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As of December 3, 2008, Sanderson State Bank had total assets of $37 million and total deposits of $27.9 million. The Pecos County State Bank agreed to assume all of the deposits for a .55 percent premium. In addition to assuming all of the failed bank’s deposits, The Pecos County State Bank will purchase approximately $3.8 million of assets, and have the option to purchase owned premises and equipment.

The deposit insurance fund will pay $12.5 million, the agency said. The FDIC, which oversees 8,384 institutions with $13.6 trillion in assets, has classified 171 banks as ‘problematic’ in the third quarter.

The Sanderson State Bank of Sanderson was the second bank failure announced by the FDIC on Friday (Dec. 12).

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