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LAS CRUCES - Since 2008, the Federal Deposit Insurance Corporation has taken over more than 200 banks.
The first such closure to affect Las Cruces took place Friday. The New Mexico Financial Institutions Division closed the doors of Taos-based First Community Bank, which has two locations in Las Cruces, and then appointed the FDIC as receiver.
All deposits are secure.
The bank reopened Saturday morning. According to a news release, "To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank, National Association, Minneapolis, Minn., to assume all of the deposits of First Community Bank."
Las Cruces customer Janice Zappone found out about her bank Saturday morning.
"I got online to pay my bills and the website said it had been closed," she said.
All 38 branches of First Community Bank reopened during their normal business hours on Saturday as branches of U.S. Bank, National Association.
U.S. Bank, National Association reports, "Depositors of First Community Bank will automatically become depositors of U.S. Bank, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits."
It also noted, "Customers of First Community Bank should continue to use their existing branch until they receive notice from U.S. Bank, National Association that it has completed
As of Sept. 30, 2010, First Community Bank had approximately $2.31 billion in total assets and $1.94 billion in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank, National Association agreed to purchase essentially all of the assets.
Customers who have questions can call the FDIC toll-free at (800) 450-5417. The phone number will be operational from noon to 6 p.m. today, and thereafter from 8 a.m. to 8 p.m. The FDIC's Web site is www.fdic.gov/bank/individual/failed/firstcomm_nm.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $260 million. The entity reports that, "compared to other alternatives, U.S. Bank, National Association's acquisition was the least costly resolution for the FDIC's DIF."
First Community Bank is the 11th FDIC-insured institution to fail in the nation this year, and the first in New Mexico. The last FDIC-insured institution closed in the state was High Desert State Bank in Albuquerque on June 25.
Information
•First Community Bank has been closed and the FDIC has been appointed the receiver.
•All deposits are insured by the FDIC.
•Customers who have questions can call the FDIC toll-free at (800) 450-5417. The phone number will be operational from noon to 6 p.m. today, and thereafter from 8 a.m. to 8 p.m.
•The FDIC's Web site is www.fdic.gov/bank/individual/failed/ firstcommnm.html.
