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The Office of the Comptroller of the Currency shuttered the $3.1 billion-asset First National Bank in Edinburg, Texas, and it was sold by the Federal Deposit Insurance Corp. in a deal estimated to cost $637 million to the Deposit Insurance Fund.
September 13 -
Many banks are aggressively closing branches to cut costs. Those banks must be mindful about branches in moderate- and low-income neighborhoods or risk downgrades after their next Community Reinvestment Act examination.
August 26 -
Fifth Third Bancorp took a $17 million impairment charge on properties it owns because it no longer plans to build branches on them. More banks may need to do the same.
July 24
PlainsCapital Bank in Dallas said on Friday that it
The closures will take effect on Jan. 30. The $8.9 billion-asset PlainsCapital inherited the branches when it bought the failed
"In an effort to continue making positive strides in the Rio Grande Valley market, we are right sizing our business to become more efficient," said Jerry Schaffner, the bank's president and chief executive, in a press release Friday.
First National, which had $3.1 billion of assets at the time it failed, operated 25 branch locations along the Texas-Mexico border. The branches that will be shuttered are in Alamo, Edinburg, Elsa, Hidalgo, La Joya, McAllen, Mercedes, Pharr and Rio Grande City. No information about staff layoffs was provided.
In the coming months, the PlainsCapital will begin construction on a branch in Weslaco, on the southernmost tip of Texas. The bank also plans to install a new ATM in Alamo, it said in the release.
PlainsCapital has over 80 locations in Texas.
