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2010 bank failures were 157, 2009 bank failures were 140
Bank Failure Friday: FDIC Seizes 4 Banks
The FDIC closed 4 banks on Friday, February 18, 2011 to increase the 2011 total to 22. Annual charts of USA bank seizures, FDIC Deposit Insurance Fund Cost for Failed Banks, and the FDIC problem bank list are below. States where banks have been closed in 2011 are: Arizona 1, California 3, Colorado 2, Florida 2, Georgia 6, Illinois 1, Michigan 1, New Mexico 1, North Carolina 1, Oklahoma 1, South Carolina 1, Wisconsin 2.
Total assets of the 4 closed banks were $1,055,300,000 ($1.0553 billion), based on the December 31, 2010 call report (regulatory financial statements). All were merged via purchase and assumption agreements into other banks.
Overall, the 4 banks were small community banks with less than $500 million in total assets.
The estimated cost to the FDIC Deposit Insurance Fund for the 4 bank closures this week was $267.6 million. The 2011 YTD total cost is now $1.72 billion. (See chart below).
#19 Habersham Bank, Clarkesville, GA
* SCBT National Association, Orangeburg, South Carolina, to assume all of the deposits
* SCBT National Association, Orangeburg, South Carolina, to assume all of the deposits
* As of December 31, 2010, Habersham Bank had approximately $387.6 million in total assets
* SCBT National Association agreed to purchase essentially all of the assets
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $90.3 million
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $90.3 million
#20 Citizens Bank of Effingham, Springfield, GA
* HeritageBank of the South, Albany, Georgia, to assume all of the deposits
* HeritageBank of the South, Albany, Georgia, to assume all of the deposits
* As of December 31, 2010, Citizens Bank of Effingham had approximately $214.3 million in total assets
* HeritageBank of the South agreed to purchase essentially all of the assets
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59.4 million
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59.4 million
#21 Charter Oak Bank, Napa, CA
* Bank of Marin, Novato, California, to assume all of the deposits
* Bank of Marin, Novato, California, to assume all of the deposits
* As of December 31, 2010, Charter Oak Bank had approximately $120.8 million in total assets
* FDIC will retain $28.5 million of the assets for later disposition
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $21.8 million
#22 San Luis Trust Bank, FSB, San Luis Obispo, CA
* First California Bank, Westlake Village, California, to assume all of the deposits
* As of December 31, 2010, San Luis Trust Bank, FSB had approximately $332.6 million in total assets
* First California Bank agreed to purchase essentially all of the assets
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $96.1 million
The next FDIC bank closings, if any, will most likely be announced on Friday, February 25.
USA Failed Banks by Year
Bank failures and therefore FDIC seizure of banks, 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 are expected to continue at a high rate and be 100+. The chart below is the actual data from 2005 through 2010. Bank failures for 2011 are estimated by extrapolating 2011 actual closures based on a 52-week year. Actual 2011 bank failures will be included on the chart later this year as the closures accumulate to a higher level.
Year, Total Bank Failures
2005: 0
2006: 0
2007: 3
2008: 25
2009: 140
2010: 157
2011: 22 actual, 163 estimated
FDIC Deposit Insurance Fund Cost of Failed Banks
Failed banks and the seizure by the FDIC cost money. The seized banks' deposits are usually assumed by another bank as are most of the assets. However, not all assets of the failed bank have value (usually the worst performing loans, non-performing loans, repossessions, and foreclosures). The FDIC may enter into a loss-share agreement with another bank to manage the questionable assets or take direct possession of the assets and attempt to dispose of them. Upon seizure of a bank, the FDIC estimates the loss to the Deposit Insurance Fund. The Deposit Insurance Fund is normally funded by the banking community through FDIC assessments to each FDIC insured bank based on insured deposits, plus special assessments. Below is a chart of the estimates by the FDIC of costs (losses) incurred upon seizure of banks in 2011. The chart is by week for 2011 and shows the accumulated losses as the year goes along.
FDIC 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
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Hey! Thanks for this great compilation of information. I was just reading about some bank closures the other day. So freaking scary that all these tiny banks are closing, and we're only going to have a few corporate options soon. Corporations are taking over the world and they're going to make sure all of us are poor and dependent on them. So sad! I'm bookmarking your blog and look forward to more info! -Thanks
ReplyDeleteActually started in the 80s & 90s in the central USA, many community banks failed. FDIC policy henceforth was to reduce their geographic risk. FDIC wanted larger, regional, even nationwide banks that were not dependent on a local economy. That backfired in 2008 when some banks became too big to fail. Credit unions have filled the community bank void with community charters.
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