Millennium State Bank of Texas, Dallas, Texas, was closed today by the Texas Department of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank of Texas, Irving, Texas, to assume all of the deposits of Millennium State Bank of Texas.
In observance of the 4th of July holiday, the sole office of Millennium State Bank of Texas will reopen on Monday as a branch of State Bank of Texas. Depositors of Millennium State Bank of Texas will automatically become depositors of State Bank of Texas. Deposits 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. Customers of both banks should continue to use their existing branches until State Bank of Texas can fully integrate the deposit records of Millennium State Bank of Texas.
Over the holiday weekend, depositors of Millennium State Bank of Texas can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of June 30, 2009, Millennium State Bank of Texas had total assets of approximately $118 million and total deposits of $115 million. State Bank of Texas agreed to purchase essentially all of the failed banks assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $47 million. State Bank of Texas' acquisition of all the deposits was the "least costly" resolution for the DIF compared to alternatives. Millennium State Bank of Texas is the 51st FDIC-insured institution to fail in the nation this year and the first in Texas.
