Enloe Bank

The Enloe State Bank has failed, and it was shut down on Friday by the Texas Department of Banking. It will reopen Monday as Legend Bank.

*This story has been updated.

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COOPER — In a move expected to cost the Federal Deposit Insurance Corp. $27 million, regulators on Friday closed Enloe State Bank, citing its failure.

The bank’s closure, the first in the U.S. since December 2017, comes just four weeks after the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas State Fire Marshal’s Office began investigating a suspicious fire May 11.

“There was no structural damage,” Delta County Sheriff Ricky Smith said at the time. “There were papers lit on fire, and we believe it is suspicious, but we don’t have anymore information at this point.”

The ATF and Delta County Sheriff’s Office were unavailable for comment Saturday on the progress of that investigation.

The FDIC on Friday said Enloe State Bank’s closure was ordered by the Texas Department of Banking without advance notice to the public, a common practice. A news release stated bank depositors could continue using debit cards and writing checks. Loan customers were advised to continue making their payments as usual.

The FDIC said it was named receiver when the bank closed, and it sold those deposits to Legend Bank in Bowie, which will reopen the branch Monday.

“Deposits assumed by Legend Bank, N.A. will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the FDIC release states.

According to the FDIC, Enloe State Bank had total assets of $36.7 million and total deposits of $31.3 million, of which there were approximately $500,000 that exceed FDIC insurance limits.

The FDIC asks that customers with accounts in excess of $250,000 contact it at 888-408-4360 to set up an appointment to discuss their deposits.

The line will be staffed from noon to 6 p.m. today, from 8 a.m. to 8 p.m. Monday and 9 a.m to 5 p.m. thereafter.

Legend Bank will assume insured deposits for a 0.51% premium, the FDIC states, and it will purchase about $5.2 million of the failed bank’s assets.

“This estimate is likely to change once the FDIC obtains additional information from these customers,” the agency’s press release states.

The closure is expected to set the FDIC Deposit Insurance Fund back about $27 million, though the FDIC said that estimate will change as assets are sold.

According to the FDIC, the last bank failure in Texas was Texas Community Bank in The Woodlands on Dec. 13, 2013.

Klark Byrd is the managing editor of The Paris News. He can be reached at 903-785-6960 or klark.byrd@theparisnews.com.

Klark Byrd is the managing editor of The Paris News and the editor of Paris Life Magazine. He resides in Paris with his wife, Krystle, and their three children, Charlie, Annalise and Willow.

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