FBOP Corp. owned Citizens National Bank in Teague, Texas, for almost 15 years.
Less than 15 weeks under the ownership of U.S. Bank – the company to which the FDIC sold all FBOP’s banks as a package – Citizens National, the healthiest of Mike Kelly’s banks, was sold.
The three-bank deal, which includes Citizens National’s two tiny siblings in Madisonville and North Houston, was reported last week by American Banker, the news service for the banking industry, on the morning of the Congressional hearing investigating the seizure of FBOP Corp.’s nine banks.
The buyer, according to the report, is Prosperity Bank, a holding company in Houston.
The price? “An unspecified premium,” American Banker reports.
“The FBOP franchise has ended up in capable hands,” Richard Hartnack, vice chairman of U.S. Bank, told the House subcommittee Thursday morning while testifying on the hearing’s first panel and seated beside Mike Kelly. “We’re not in this for a quick trade.”
The Texas banks have been on the market since early December.
Citizens National and Park National were FBOP’s healthy banks: Citizens National met the FDIC standard of “well-capitalized” and Park National was “adequately capitalized.” The two banks were seized along with their problem-list siblings – one “undercapitalized” bank in Arizona and six “significantly undercapitalized” banks (one in suburban Lemont, three in California, and the two others in Texas) – because of a Robin Hood provision in federal banking regulations, a seldom-applied condition called cross-guarantee liability.
Citizens National and Madisonville State Bank each were one-branch operations. North Houston Bank had two branches.
The sale of the three banks, according to American Banker, is expected to close by the end of March.