The Texas Department of Banking on May 31 closed Cooper, Texas-based Enloe State Bank and appointed the Federal Deposit Insurance Corp. receiver in a failure estimated to cost the deposit insurance fund about $27 million.
The FDIC, in turn, entered into a purchase and assumption agreement with Bowie, Texas-based Legend Bank NA to assume the insured deposits of Enloe State Bank for a 0.51% premium. Legend Bank, a unit of Legend Bancorp Inc., will also purchase about $5.2 million of the failed bank's assets, with the FDIC keeping the remaining assets for later disposition.
The Entex Bancshares Inc. unit is the first bank to fail in the U.S. in 2019, with $36.7 million in total assets and $31.3 million in total deposits as of March 31, according to a press release from the FDIC.
S&P Global Market Intelligence data shows that in 2018, regulators did not close any bank in the U.S., marking the first year without a failure in more than a decade.
The last bank failure was Chicago-based Washington Federal Bank for Savings, on Dec. 15, 2017. The last failure in Texas was Texas Community Bank NA, on Dec. 13, 2013.
SAMCO Capital Markets Inc. served as financial adviser to Legend.