Another US Bank Ordered to Shut Down This Year

The nightmare of bank failures returned to the US, this time in Texas where the Santa Anna National Bank of Santa Anna was shut down last week-end by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

The OCC took action after finding the bank had experienced “substantial dissipation of assets and earnings due to unsafe or unsound practices. It also determined the bank was in an unsafe or unsound condition to transact business, and its assets were less than its obligations to its creditors and others.

Santa Anna National Bank is the second bank ordered to wind up operations this year, the first one being Chicago-based Pulaski Savings Bank, which was closed in January 2025. The last failure of a bank in Texas was The Enloe State Bank of Cooper, Texas on 31 May 2019.

Suspected fraud contributed to the single-branch bank’s failure and $23.7 million estimated cost to the Deposit Insurance Fund, the FDIC said. That estimate is likely to change as assets are sold, the regulator said.

The FDIC entered into a purchase and assumption agreement with Coleman County State Bank of Coleman, Texas, to assume the insured deposits and some of the assets of the Santa Anna National Bank.

The Santa Anna National Bank’s sole office reopened on Monday as a branch of Coleman County State Bank and the depositors of the failed bank will automatically become depositors of Coleman County State Bank.

The insured deposits assumed by Coleman County State Bank 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.

All Coleman County State Bank customers (formerly, The Santa Anna National Bank) will have access to their insured deposits and can write checks or use their ATM or debit cards up to their insured limits. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Assets Decline in One Month

Santa Anna, established in 1933, had $76.9 million in assets and $71.4 million in deposits as of mid-April. However, within a month, the bank reported total assets of $63.8 million and total deposits of $53.8 million.

Approximately $2.8 million of the deposits exceeded FDIC insurance limits, an amount that is likely to change once the FDIC obtains additional information from customers. After receiving further information, the FDIC will consider whether to provide uninsured depositors an advance dividend (i.e. access to a portion of their uninsured funds) and will provide more information at that time.

Customers who would like more information on the transaction can call FDIC’s toll-free number or visit the FDIC’s website. Beginning Monday, depositors of The Santa Anna National Bank with more than $250,000 in deposits may visit the FDIC’s webpage “Is My Account Fully Insured?” to determine their insurance coverage.

Coleman County State Bank agreed to assume the insured deposits for a 5.16% premium while the FDIC will retain a large portion of the assets of The Santa Anna National Bank for later disposition. The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $23.7 million. This loss estimate will change over time as the assets are sold. Suspected fraud contributed to the failure of the bank and estimated cost to the DIF.