Friday, February 22, 2013

Bank Failures 2013 - FDIC Seizes Covenant Bank of Chicago

Bank Failures 2013 continue with the FDIC seizing Covenant Bank, Chicago, IL on Friday, February 15, 2013. This is the third bank failure of the year. Banks have now been closed in Illinois, Minnesota, and Washington in 2013.

#3 Covenant Bank, Chicago, IL
* Liberty Bank and Trust Company, New Orleans, LA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $58.4 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $21.8 million
* The last bank closed in the state had been Citizens First National Bank, Princeton, on November 2, 2012

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 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 22. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.

Cost of Failed Banks The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $52.6 million. The total estimated losses in 2012 were $2.47 billion.

Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Covenant Bank, Chicago, IL $21.8M
2 Westside Community Bank, University Place, WA $20.3M
3 1st Regents Bank, Andover, MN $10.5M

Failed Credit Unions

The NCUA has seized 2 credit unions in 2013:
Closed and Liquidated
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7, 2013)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8, 2013)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

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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