Millennium State Bank of Texas, Dallas, TX

The FDIC was busy this holiday weekend seizing seven banks after the close of business this fourth of July weekend. Millennium State Bank of Texas, marked the 51st bank to be shut down by the agency in 2009. Here is the story from Bizjournals.

The Texas Department of Banking on Thursday closed Dallas-based Millennium State Bank of Texas, the first bank failure in Texas this year and the first in the Dallas area in more than a decade.

The six-year-old bank had one office in Dallas on Webb Chapel Road near Interstate 635.

Irving-based State Bank of Texas has acquired essentially all the assets of Millennium, according to the Federal Deposit Insurance Corp.

Seven groups put in bids for Millennium, according to the FDIC.

All depositors of Millennium State Bank will have access to their funds over the July Fourth weekend, according to the FDIC. On Monday July 6, they will automatically become depositors of State Bank of Texas.

“From a customer perspective, they woun’t see any disruption in service,” said Marvin Payne, an FDIC spokesman.

FDIC and Texas Banking Department staffers are working through the holiday weekend closing out the books of Millennium State Bank and integrating them into State Bank of Texas.

As of June 30, Millennium had $118 million in total assets and $115 million in deposits.

State Bank of Texas has $588 million in assets. Millennium’s Northwest Dallas office will be its fourth branch.

But that won’t be for long. State Bank of Texas is selling its headquarters location on State Highway 183 to the Texas Department of Transportation for planned widening of that freeway, said Chan Patel is the president and CEO of State Bank of Texas.

Millennium was started by a group of investors including businessman George Gouldsby and bankers J.D. Sibilsky and Clyde Hensley. Sibilsky once ran Small Business Administration lending for Comerica Bank. Hensley was chief lending officer at Dallas’ Eagle National Bank, which was acquired by Houston-based Sterling Bank in September 2002.

Millennium first focused on small-business lending and owner-occupied real estate loans.

Millennium was profitable in 2005, but has produced losses ever since.

Millennium tapped Don Flatt to be its president in spring 2008. At the time, board chairman Gouldsby said the bank should have a wider range of offerings.

“You have to do a lot of things and do a lot of things well to make money for yourself and your investors,” he said in April 2008.

Millennium is one of seven banks closed on Thursday. Thus far this year, the 52 banks have failed this year nationwide. In all of 2008, 26 banks failed nationwide.

Do not hesitate to visit the official FDIC webpage for Millennium State Bank if you should have any questions.