We had a doubleheader by the Federal Deposit Insurance
Corporation (FDIC) as they seized two banks on Friday evening. The first was the
Sanderson State Bank of Texas.
This bank was taken over by the Pecos
County Bank. Sanderson State Bank was a small bank and had total assets of $37
million and total deposits of $27.9 million at December 3,
2008.
Sanderson State Bank was first established in 1907, and had only
one branch. It was able to survive the Panic of 1907, and the Great
Depression
in the 1930's, but not the most recent calamity to strike our
economy.
The interesting thing to note was how quickly the situation
deteriorated for Sanderson State Bank. At 9/30/2008, the bank had a Tier 1
risk-based capital ratio of 12.55%, and a Total risk-based capital ratio of
13.80%.
Ninety percent of its loans
were real estate and maybe it was one concentrated loan that did them in. A sad
end to a 100 year old bank.
