State regulators shut down $16.8 million-asset Zia New Mexico Bank on Friday; it was the second bank to fail this year.

Based in Tucumcari, the two-branch bank was reopened Monday as part of $48 million-asset First National Bank of New Mexico in Clayton. First National paid the Federal Deposit Insurance Corp. a $375,000 premium for all of Zia's $16.8 million of deposits and for $6 million of its assets. The FDIC estimated the failure would cost the Bank Insurance Fund $1.6 million.

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