Tuesday, January 15, 2013

Bank Failures 2013 Begin with Westside Community Bank

Bank Failures 2013 began with the FDIC closing Westside Community Bank of University Place, WA on Friday, January 11, 2013. This is the first bank failure in 2013.

#1 Westside Community Bank, University Place, WA
* Sunwest Bank, Irvine, CA assumed all of the deposits and purchased most of the assets
* As of September 30, 2012, the bank had approximately $97.7 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $20.3 million
* The last bank closed in the state had been Bank of Whitman, Colfax, on August 5, 2011

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois have accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 26. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.

Cost of Failed Banks The total estimated cost to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date is $20.3 million. The total estimated cost in 2012 was $2.47 billion.

The most costly banks to the Deposit Insurance Fund (DIF) in 2012 were:
1 Tennessee Commerce Bank, Franklin, TN $416.8M
2 The First State Bank, Stockbridge, GA $216.2M
3 Inter Savings Bank FSB, Maple Grove, MN $117.5M
4 Fidelity Bank, Dearborn, MI $92.8M
5 NOVA Bank, Berwyn, PA $91.2M
6 First Guaranty Bank & Trust Company of Jacksonville, Jacksonville, FL $82.0M
7 Second Federal Savings and Loan Association of Chicago, Chicago, IL $76.9M
8 Plantation Federal Bank, Pawleys Island, SC $76.0M
9 BankEast, Knoxville, TN $75.6M
0 Montgomery Bank & Trust, Ailey, GA $75.2M

Failed Credit Unions The NCUA closed and liquidated New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI on January 7, 2013. This was the first credit union failure in 2013.

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.


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