On Friday, the Office of the Comptroller of the Currency closed The La Coste National Bank , headquartered in La Coste, Texas, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Community National Bank., headquartered in Hondo, Texas, to assume all of the deposits of The La Coste National Bank.
As of December 31, 2009, The La Coste National Bank had approximately $53.9 million in total assets and $49.3 million in total deposits. Community National Bank will pay the FDIC a premium of 0.51% to assume all of the deposits of The La Coste National Bank. Community National Bank also agreed to purchase essentially all of the failed bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $3.7 million. The La Coste National Bank is the 18th FDIC-insured institution to fail in the nation this year, and the first in Texas.