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.