First American Bank has assumed all of the deposits of High Desert State Bank, Albuquerque, New Mexico, after High Desert State Bank was closed by the New Mexico Financial Institutions Division, which appointed Federal Deposit Insurance Corporation (FDIC) as receiver.
According to FDIC, the two branches of High Desert State Bank will now operate as branches of First American Bank. Depositors of High Desert State Bank will automatically become depositors of First American Bank. Deposits will continue to be insured by the FDIC.
As of March 31, 2010, High Desert State Bank had approximately $80.3m in total assets and $81m in total deposits. First American Bank did not pay the FDIC a premium for the deposits of High Desert State Bank. In addition to assuming all of the deposits of the failed bank, First American Bank agreed to purchase essentially all of the assets.
The FDIC and First American Bank entered into a loss-share transaction on $67.6m of High Desert State Bank’s assets. First American Bank will share in the losses on the asset pools covered under the loss-share agreement.