Feds Take Over, Sell Dallas Bank

By Omar Villafranca
|  Thursday, Jul 2, 2009  |  Updated 11:00 PM CDT
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Feds Take Over, Sell Dallas Bank

KXAS

State Bank of Texas has bought Millennium State Bank of Texas in Dallas.

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Feds Take Over, Sell Dallas Bank

Millennium State Bank of Texas is one of seven banks to be taken over the FDIC on Thursday.
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Millennium State Bank of Texas has a new owner and new name: State Bank of Texas.

The Dallas bank was one of seven taken over by the Federal Deposit Insurance Corp. on Thursday.

The bank lost millions in the down economy, mainly from its commercial real estate sector. On Thursday, the bank's new owner took control of more than $100 million in assets.

Marvin Payne of the FDIC said that the bank's failure was imminent, but the situation was not disclosed to employees or customers because of federal rules. Instead, the FDIC started looking for a buyer.

"We started marketing the institution to 277 potential bidders," he said. "Of that list, we received seven bids, and the State Bank of Texas was the successful bidder."

Chan Patel, chairman of the State Bank of Texas, said the institution has three North Texas locations. When the takeover is complete, it will have a Dallas branch at Millennium's location near Interstate 635 and Webb Chapel Road.

Patel said he wants customers to know their money is safe and federally insured.

"Our primary goal is the quality of service," he said. "We want to make this as smooth a transaction as possible. Customers can access the ATM, also, they can go online to (the) bank, and come Monday morning, they'll be no changes."

When asked about what will happen to bank employees, Patel said a decision has not been made. 

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