Bank Failure

First State Bank

Name: First State Bank Bank Failure
Start: 1989-08-17
End: 1989-08-17
Location: Liberty, TX

Closed August 17, 1989 · Liberty, TX · FDIC Cert #11158.

Closing date: August 17, 1989
Headquarters: Liberty, TX
FDIC Certificate: 11158
Total assets at closing: $62.2M
Total deposits at closing: $61.4M
Estimated loss to DIF: $18.4M
Resolution: Failure (closed by regulators)
Acquirer: First City, Texas-Beaumont

Context

On August 17, 1989, regulators closed First State Bank, headquartered in Liberty, TX. At closing, the institution held approximately $62.2M in assets and $61.4M in deposits. The FDIC arranged a resolution under which First City, Texas-Beaumont acquired the failed bank's operations. The estimated cost to the FDIC Deposit Insurance Fund was approximately $18.4M.

By assets at closing this is the 1499th largest of the 3,524 bank failures in the FDIC record, and the 286th of 530 in 1989. It falls in the period the record labels S&L / Banking Crisis (1980-1995), a period with 2,367 failures peaking at 530 in 1989.

Deregulation, interest-rate shocks, and commercial real estate blowups produced the worst US banking failure wave since the Depression. Resulted in FIRREA (1989) and the RTC.

Source: FDIC Failed Banks list. Asset and deposit values reflect the most recent regulatory filing prior to closing.

Common questions

When did First State Bank fail?

First State Bank was closed by regulators on August 17, 1989.

Who acquired First State Bank?

First City, Texas-Beaumont acquired the failed bank's deposits and operations on August 17, 1989 under an FDIC-brokered resolution.

How big was First State Bank when it failed?

First State Bank had approximately $62.2M in total assets and $61.4M in deposits at the time of failure.

Other failures in 1989

Date	Bank	HQ	Assets
Dec 21, 1989	Columbia FSA	Nassau Bay, TX	$77.1M
Dec 21, 1989	Silver Savings Assoc.	Silver City, NM	$32.2M
Dec 20, 1989	First City National Bank and Trust	New York, NY	$39.5M
Dec 20, 1989	United Community Bank	Westlake Village, CA	$32.3M
Dec 15, 1989	First American Bank and Trust	North Palm Beach, FL	$1.38B
Dec 14, 1989	Yorkridge-Calvert Federal Savings	Baltimore, MD	$585.8M
Dec 14, 1989	Louisiana Savings ASSN.	Lake Charles, LA	$449.3M
Dec 14, 1989	First Acadiana Bank	Eunice, LA	$46.8M

All 1989 events ›

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