Bank Failure
Merchants State Bank
Closed January 19, 1989 · Dallas, TX · FDIC Cert #16374.
- Closing date
- January 19, 1989
- Headquarters
- Dallas, TX
- FDIC Certificate
- 16374
- Total assets at closing
- $122.0M
- Total deposits at closing
- $124.6M
- Estimated loss to DIF
- $21.0M
- Resolution
- Failure (closed by regulators)
- Acquirer
- Grand Bank
Context
On January 19, 1989, regulators closed Merchants State Bank, headquartered in Dallas, TX. At closing, the institution held approximately $122.0M in assets and $124.6M in deposits. The FDIC arranged a resolution under which Grand Bank acquired the failed bank's operations. The estimated cost to the FDIC Deposit Insurance Fund was approximately $21.0M.
By assets at closing this is the 1077th largest of the 3,526 bank failures in the FDIC record, and the 198th 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 Merchants State Bank fail?
Merchants State Bank was closed by regulators on January 19, 1989.
Who acquired Merchants State Bank?
Grand Bank acquired the failed bank's deposits and operations on January 19, 1989 under an FDIC-brokered resolution.
How big was Merchants State Bank when it failed?
Merchants State Bank had approximately $122.0M in total assets and $124.6M in deposits at the time of failure.
Other failures in 1989
| Date | Bank | Assets |
|---|---|---|
| Dec 21, 1989 | Columbia FSA | $77.1M |
| Dec 21, 1989 | Silver Savings Assoc. | $32.2M |
| Dec 20, 1989 | First City National Bank and Trust | $39.5M |
| Dec 20, 1989 | United Community Bank | $32.3M |
| Dec 15, 1989 | First American Bank and Trust | $1.38B |
| Dec 14, 1989 | Yorkridge-Calvert Federal Savings | $585.8M |
| Dec 14, 1989 | Louisiana Savings ASSN. | $449.3M |
| Dec 14, 1989 | First Acadiana Bank | $46.8M |
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