WASHINGTON (AP) — Regulators have closed a small bank in Texas, bringing the number of U.S. bank
failures to 24 this year.The Federal Deposit Insurance Corp. said Friday it has taken over Texas Community
Bank NA, based in The Woodlands, Texas.The lender, which operated two branches, had about $160.1 million in
assets and $142.6 million in deposits as of Sept. 30.Spiritof Texas Bank SSB, based in College Station,
Texas, agreed to assumeall of Texas Community Bank’s deposits and to buy $147.9 million of thefailed bank’s
assets.The FDIC is retaining the remaining assets for later disposition.The failure of Texas Community Bank
is expected to cost the deposit insurance fund $10.8 million.Thelender is the second FDIC-insured
institution to fail in Texas thisyear. In September, it shuttered First National Bank, based in
Edinburg,Texas.U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial
crisis and the Great Recession.In2007, only three banks went under. That number jumped to 25 in 2008,after
the financial meltdown, and ballooned to 140 in 2009.In2010, regulators seized 157 banks, the most in any
year since thesavings and loan crisis two decades ago. The FDIC has said 2010 likelywas the high-water mark
for bank failures from the recession. Theydeclined to a total of 92 in 2011.Last year, bank failures
slowedto 51 — still more than normal. In a strong economy, an average of fouror five banks close
annually.The sharply reduced pace of bank closings shows sustained improvement.From2008 through 2011, bank
failures cost the deposit insurance fund anestimated $88 billion, and the fund fell into the red in 2009.
Withfailures slowing, the fund’s balance turned positive in the secondquarter of 2011.The fund had a $40.8
billion balance as of Sept. 30, up from $37.9 billion at the end of June.The FDIC has said it expects bank
failures from 2012 through 2016 will cost the fund $10 billion.Copyright 2013 The Associated Press. All
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