Financial Controls: Bank Failure Friday: FDIC Closes 6 Banks! (Failed & Problem Bank Charts) *2010 Total Now 157*

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2009 Bank Failures were 140, 2010 YTD is 157

Bank Failure Friday: FDIC Closes 6 Banks!

The 2010 USA bank failures increased to 151 with the closure of the 2 banks listed below. The 151 closings in 2010 exceed the 2009 total of 140. Annual charts of USA bank closings and the FDIC problem bank list are below.

Total assets of the closed banks were $1,226,500 ($1.23 billion), based on the September 30, 2010 call reports (regulatory financial statements). All banks were merged via purchase and assumption agreements into other banks.

Overall, these were 6 small community banks that were closed by the FDIC. The Bank of Miami was the larger with $448.2 million in total assets.

#152 The Bank of Miami, National Association, Coral Gables, FL

1st United Bank, Boca Raton, Florida, to assume all of the deposits of The Bank of Miami, N.A.

As of September 30, 2010, The Bank of Miami, N.A. had approximately $448.2 million in total assets

1^st United Bank agreed to purchase approximately $442.3 million of the failed bank's assets

The FDIC will retain the remaining assets for later disposition.

#153 Chestatee State Bank, Dawsonville, GA

Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Chestatee State Bank.

As of September 30, 2010, Chestatee State Bank had approximately $244.4 million in total assets

Bank of the Ozarks agreed to purchase essentially all of the assets.

#154 Appalachian Community Bank, FSB, McCaysville, GA

Peoples Bank of East Tennessee, Madisonville, Tennessee, to assume all of the deposits of Appalachian Community Bank, F.S.B., except for brokered deposits and certain out-of-state certificates of deposit

As of September 30, 2010, Appalachian Community Bank, F.S.B. had approximately $68.2 million in total assets

Peoples Bank of East Tennessee agreed to purchase approximately $67.5 million of the failed bank's assets

The FDIC will retain the remaining assets for later disposition.

#155 United Americas Bank, N.A., Atlanta, GA

State Bank and Trust Company, Macon, Georgia, to assume all of the deposits of United Americas Bank, N.A.

As of September 30, 2010, United Americas Bank, N.A. had approximately $242.3 million in total assets

State Bank and Trust Company agreed to purchase essentially all of the assets.

#156 First Southern Bank, Batesville, AR

Southern Bank, Poplar Bluff, Missouri, to assume all of the deposits of First Southern Bank.

As of September 30, 2010, First Southern Bank had approximately $191.8 million in total assets

Southern Bank agreed to purchase approximately $152.8 million of the failed bank's assets.

The FDIC will retain the remaining assets for later disposition.

#157 Community National Bank, Lino Lakes, MN

Farmers & Merchants Savings Bank, Manchester, Iowa, to assume all of the deposits of Community National Bank.

As of September 30, 2010, Community National Bank had approximately $31.6 million in total assets

Farmers & Merchants Savings Bank agreed to purchase essentially all of the assets.

The next FDIC bank closings, if any, will most likely be announced on Friday, December 24. However, being a Christmas week and New Year's the next week, bank closings may be deferred until 2011. If so, this is the 2010 final bank closures and the final total will be 157.

USA Failed Banks by Year

Bank failures and therefore FDIC seizure of banks, has dramatically increased in 2009 and 2010 - a 2-year total of 297 compared to 0 in both 2005 and 2006. As noted below regarding total problem banks, bank failures in 2011 should continue at a high rate. Chart data, from 2005 through December 17, 2010, is:

Year, Total Bank Failures

2005: 0

2006: 0

2007: 3

2008: 25

2009: 140

12/10/10 YTD: 157

USA Problem Banks by Year

The FDIC problem bank list continues to rise, actually skyrocket, although the total assets of these banks has leveled off. From the year-ends 2005 through 2009, the total problem banks were 52, 50, 76, 252, and 702, respectively. Now at 9/30/2010 the total is an astronomical 860. The total assets of the problem banks from the year-ends 2005 through 2009 were $7B, $8B, $22B, $159B, and $403B, respectively. The total assets of the current (9/30/2010) 860 problem banks is $379B, indicating most of these are small to medium community banks. Chart data, from YE 2005 through the QE September 30, 2010, is:

Date, Total Problem Banks

12/31/2005: 52

12/31/2006: 50

12/31/2007: 76

12/31/2008: 252

12/31/2009: 702

9/30/2010: 860