State regulators closed the First International Bank, which has seven branches in Plano, Texas, the Federal Deposit Insurance Corp said on Friday. The closure is the 74th this year. American First National Bank will take over the branches and deposits of First International Bank. As of June 30, 2011, First International Bank had about $239.9 million in assets and $208.8 million in deposits.
Most of the banks that have failed so far this year have had less than $1 billion in assets, illustrating the problems facing small banks. Many community banks continue to be hit hard by the sluggish economy and their exposure to the troubled commercial real estate market.
The largest US banks have recovered more quickly from the 2007-2009 financial crisis and the overall outlook for the industry has been improving in recent quarters. The industry earned $28.8 billion in the second quarter, a $7.9 billion increase from a year before, the FDIC announced on August 23.
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