After Enloe State Bank Debacle, Questions Outnumber Answers
Cooper made the Dallas Morning News over the weekend, and unfortunately, it wasn’t a fun feature about the lake. Instead, business reporter Orla McCaffrey told the story of the troubled (and more than a little suspicious) demise of Enloe State Bank.
A May 11 fire damaged, but did not destroy, than bank’s building. The fire inspired state and federal regulators to investigate the bank. By May 31, Enloe State Bank was out of business for good. A Texas Department of Banking statement on the closure cited “insider abuse and fraud by former officers,” the Dallas Morning News reported.
McCaffrey’s article also detailed how, shortly after the fire, some Cooper residents received mailed notices describing loans that federal officials debunked as fraudulent. The bank and its material and fiscal assets were taken over by the Federal Deposit Insurance Corporation, which insures deposits up to $250,000. Most of those who lost access to their money when Enloe State Bank went out of business will be reimbursed in full, but the Dallas Morning News report said that 10 customers had deposits greater than the insured amount. Bowie-based Legend Bank has taken over Enloe State Bank’s insured accounts.
Unsurprisingly, former bank president Anita Moody declined the newspaper’s request for comment.
The bank’s failure was the first one in the United States since 2017 and the first in Texas since 2013. Bank failures ramped up following the 2007 housing crisis, spiked during the 2008 recession and peaked in 2010 before dropping down to pre-recession levels in 2013.
Right now, questions, speculations and rumors outnumber the answers about what happened at Enloe State Bank. But, the answers should be coming along – sooner or later.
An earlier version of this post reported that a federal investagtion had begun before the May 11 fire. This post was edited at 1 p.m. on July 23 to correct the timeline of events.