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.