The third bank failure of 1996 occurred last week when First National Bank of the Panhandle in Panhandle, Tex., was closed.

First National's $76 million in deposits were split between Sun Bank, Sunray, Tex., and the Plains National Bank of West Texas in Lubbock.

The Office of the Comptroller of the Currency on June 14 used its power to seize a bank when it becomes critically undercapitalized. Huge loan losses, allegedly brought on by fraud, depleted First National of Panhandle's capital, according to the agency.

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