UPDATED: Includes the seven banks seized by the FDIC over the holiday weekend. Since the FDIC began publishing the failed bank list in 2000, 74% of the banks on the list were placed there during this recession.
Daily Graphic: FDIC Bank Seizures This Year at 45 Nearly Double Those Seized in Recession’s First Year
Five more banks were seized by the Federal Deposit Insurance Corp. over the weekend in Georgia, Minnesota and California. During the first year of the current recession – 2008 – 25 FDIC insured banks failed. Little more than halfway through 2009 this year’s total is 45.
The Federal Deposit Insurance Corp. seized two banks in Illinois Friday evening.
Thirty six FDIC insured banks have failed this year, five in Illinois.
The deposits of Citizens National Bank are due to be acquired by Morton Community Bank as part of a “loss share” agreement with the FDIC. Over the weekend depositors of Citizens National may access their funds through ATMs and check writing. The FDIC estimates the cost to their Deposit Insurance Fund at $106 million.
The FDIC has entered into a purchase agreement with Midland States Bank for the assets of Strategic Capital Bank. Strategic Capital’s only office will reopen on Tuesday, following the Memorial Day holiday, as a branch of Midland States. Strategic Capital’s customers will be able to write checks and access their funds via ATM over the weekend.
Strategic Capital’s failure is expected to cost the Deposit Insurance Fund some $173 million.
Seventy percent of FDIC insured banks which have failed since 2000 have failed during the current recession.
The financial crisis has swallowed three more banks in Georgia, Utah and New Jersey bringing this recession’s total bank failures to 56.
Through May 1, 32 banks have failed in the U.S. during 2009. Twenty-five failed nationwide last year. The latest bank failures include:
American West Bank, Layton, UT – Deposits were acquired by Cache Valley Bank, Logan, UT. American West branches will reopen Monday as Cache Bank facilities. The estimated cost to the FDIC’s Deposit Insurance Fund is $119.4 million.
Citizens Community Bank, Ridgewood, NJ – Deposits were acquired by North Jersey Community Bank, Englewood Cliffs, NJ. Citizens Community’s sole office will reopen Monday as a branch of North Jersey Community Bank. The estimated cost to the FDIC’s Deposit Insurance Fund is $18.1 million.
Silverton Bank, N.A., Atlanta, GA – There was no acquiring institution. The FDIC has created a Bridge Bank to handle the wind down of Silverton Banks affairs. Silverton’s bridge bank will open on Monday and operate until July 29. The estimated cost to the FDIC’s Deposit Insurance Fund is $1.3 billion.
Friday’s Failures to tap FDIC fund for nearly $700 million
Federal Deposit Insurance Corp. regulators seized four more banks Friday night bringing the total number of 2009 bank failures to 28.
In all of 2008, during the first year of the recession, 25 U.S. banks failed.
Joining the FDIC’s Failed Banks List on Friday night were:
- First Bank of Idaho, Ketchum, ID
- First Bank of Beverly Hills, Calabasas, CA
- Heritage Bank, Farmington Hills, MI
- American Southern Bank, Kennesaw, GA
The First Bank of Idaho will be acquired by U.S. Bank. The cost to the FDIC’s Deposit Insurance Fund will be $191.2 million. All First Bank branches will reopen by Monday as U.S. Bank branches.
The First Bank of Beverly Hills will not be acquired. The FDIC will mail checks covering insured deposits to bank customers. First Bank of Beverly Hills will cost the Deposit Insurance Fund $394 million.
Heritage Bank branches will reopen on Monday as branches of Level One Bank. FDIC cost for Heritage’s failure is estimated at $71.3 million.
American Southern Bank will be acquired by Bank of North Georgia. The FDIC says American Southern’s failure will cost the Deposit Insurance Fund $41.9 million.
The twenty-fourth U.S. bank failure of 2009 occurred this evening when the American Sterling Bank, Sugar Creek, Missouri was seized by federal regulators.
Metcalf Bank of Lee’s Summit, Missouri will assume the deposits and former American Sterling offices will begin reopening on Saturday as Metcalf Bank branches.
According to a press release by the Federal Deposit Insurance Corp., the government agency which insures depositors for up to $250,000 and regulates member institutions, the Metcalf Bank acquisition of American Sterling was the least cost option. The estimated cost to the FDIC’s Deposit Insurance Fund is $42 million.
In 2008, the number of failed U.S. banks hit 25, the highest number in any year since the Failed Bank List began to be posted on the Internet. Since the current recession began, 49 banks have failed. Sixty-four percent of banks which have failed since October 2000 have failed during this recession.
Two more banks were seized by the FDIC on Friday, one in Colorado and one in North Carolina. Failed banks through April 10, 2009 are nearly as many as those failed during the entire year 2008.
In only 3 months this year, 21 federally insured U.S. banks have failed. In all of last year 25 failed. The latest this week was Omni National Bank, Atlanta, Ga. Data to build the chart comes from the Federal Deposit Insurance Corp.’s Failed Bank List.