Southwest Bank to participate in FDIC program extension

Southwest Bank is participating in a six-month extension of the Federal Deposit Insurance Corp.’s voluntary Temporary Liquidity Guarantee Program.

The program, which requires banks to pay an increased assessment, insures 100 percent of deposits held in non-interest bearing transaction accounts at Southwest Bank, regardless of dollar amount, through June 30, 2010.

The FDIC created the program in October 2008 to promote liquidity in the United States’ banking system. The unlimited coverage would have expired at the end of 2009. First Command Bank, also based in Fort Worth, told the FDIC it would not participate in the program’s extension.

“On a practical level, this means Southwest Bank is able to offer peace of mind and stability to many Texas businesses that have payroll and other types of accounts with balances exceeding the $250,000 insurance limit set by the FDIC,” said Vernon Bryant, Southwest Bank’s chairman and CEO, in a statement. “We are a very strong, well-capitalized bank, yet we also want to extend to our customers every possible protection offered by the U.S. government at this time in our economy.”

According to FDIC data, Southwest Bank has 9 Tarrant County locations, and more than $420 million in deposits in Tarrant County. A new location in south Arlington is set to open early next year.

lwimmer@bizpress.net