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FDIC APPROVES THE ASSUMPTION OF ALL THE DEPOSITS
OF ZIA NEW MEXICO BANK, TUCUMCARI, NEW MEXICO
FOR IMMEDIATE RELEASE
PR-20-99 (4-23-99)
Media Contact:
David Barr (202) 898-6992

The Federal Deposit Insurance Corporation (FDIC) has approved the assumption of all the deposits of Zia New Mexico Bank, Tucumcari, New Mexico, by the First National Bank of New Mexico, Clayton, New Mexico.

Zia was closed today by New Mexico’s Director of Financial Institutions, and the FDIC was named receiver.

Zia’s two offices will re-open on Monday, April 26, as branches of First National, and the failed bank’s depositors will automatically become depositors of the assuming bank. Zia had total deposits of $16.8 million in approximately 1,640 accounts at the time of closing.

First National will pay the FDIC a premium of $375,000 to purchase $6.0 million of the failed bank’s assets and to assume the deposits. The FDIC as receiver will retain the remaining $10.8 million of assets for later disposition.

The FDIC estimates this transaction will cost the Bank Insurance Fund (BIF) $1.6 million.

This is the second bank failure in the U.S. this year, and the first BIF-insured bank failure in New Mexico since Liberty National Bank, Lovington, New Mexico, on May 23, 1991.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 10,461 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).

 

Last Updated 07/14/1999 communications@fdic.gov