Today, Guaranty Bank, headquartered in Austin, Texas, was closed by theOTS and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with BBVA Compass, headquartered in Birmingham, Alabama, to assume all the deposits of Guaranty Bank, excluding brokered deposits.
As of June 30, 2009, Guaranty Bank had total assets of approximately $13 billion and total deposits of almost $12 billion. BBVA Compass will also purchase $12 billion of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and BBVA Compass entered into a loss-share transaction on approximately $11 billion of Guaranty Bank’s assets. BBVA Compass did not assume the $344 million in brokered deposits. The FDIC will pay the brokers directly for the amount of their funds.
The FDIC estimates that the cost of Deposit Insurance Fund will be $3 billion. Guaranty Bank is the 81st bank to fail in the nation this year and the 2nd in Texas. After Colonial Bank, this is the 2nd largest failure in the nation this year.