WASHINGTON — First International Bank in Plano, Texas, became the year's 74th failed institution late Friday.
The state's banking regulator closed the $240 million-asset bank and appointed the Federal Deposit Insurance Corp. as receiver. American First National Bank in Houston agreed to assume all of First International's $209 million in deposits and acquire essentially all of its assets. The failed bank's seven branches will reopen under normal hours starting Saturday as part of American First.
The failure, the first to occur in Texas this year, was estimated to cost the FDIC nearly $54 million. The last bank closed in the state was The LaCoste National Bank in LaCoste, which failed in February 2010.
A press release issued by Texas Banking Commissioner Charles G. Cooper said the bank's failure resulted from "poor oversight of lending activities that depleted its capital, leaving the bank critically undercapitalized."
"Efforts to raise additional capital were unsuccessful, resulting in the bank's closure," the release said.
