Bank Failures Decline But Still Above Pre Banking Crisis Levels

pbl dec 2014

Prior to the banking crisis that began in 2008 bank failures had been a rare occurrence with only 32 banking failures between 2000 to 2007. During 2008 the wheels began to fall off the financial system and bank failures increased dramatically as loan defaults soared. As the banking crisis worsened bank failures reached a peak […]

Yes – It Is Still Possible to Get High Interest Rates on Your Savings

ZERO

In 2007 it would have been inconceivable for anyone to imagine that savers would receive virtually zero percent return on their money.  The entire concept of wealth creation is built not only upon savings but upon the magic of compound interest whereby your money works for you by earning more money. It wasn’t that long […]

Doral Bank Collapses After Years of Financial Losses – Largest Bank Failure Since 2010

Doral

The largest bank failure since 2010 left the FDIC on the hook for almost $1 billion in losses as the giant $5.9 billion asset Doral Bank, San Juan, Puerto Rico, was closed by bank regulators.  Doral Bank has been a bank failure waiting to happen as years of losses and economic turmoil in Puerto Rico […]

Number of Problem Banks Declines for 15th Consecutive Quarter

pbl dec 2014

According to the latest FDIC Quarterly Banking Profile the number of problem banks continued to decline for the quarter ending December 31, 2014. After reaching a peak of 888 at the end of the first quarter of 2011 the number of problem banks has declined for 15 consecutive quarters.  The number of problem banks is […]

Capitol City Bank & Trust Co, Georgia, Collapses – Largest Bank Failure of 2015

Capitol City

The largest bank failure of the year occurred today as regulators closed down Capitol City Bank & Trust Company, Atlanta, Georgia.  After shuttering the bank, the Georgia Department of Banking & Finance appointed the FDIC as receiver.  To protect depositors the FDIC sold the failed bank under a purchase and assumption agreement to First-Citizens Bank […]

Highland Community Bank, IL, Second Bank Failure of 2015

HCB

The second bank failure of the year occurred in Illinois when state regulators closed Highland Community Bank, Chicago, IL.  During 2014 Illinois had five banking failures, the most of any state. After closing Highland Community Bank, state regulators appointed the FDIC as  receiver.  To protect depositors the FDIC sold the failed bank to United Fidelity […]

1st Bank Failure of 2015 – Feds Close First National Bank of Crestview, FL

FBN

The first banking failure of 2015 occurred in the state of Florida as the Office of the Comptroller of the Currency shut down the First National Bank of Crestview, Crestview, Florida.  The FDIC, appointed as receiver, sold the failed bank to First NBC Bank, New Orleans, Louisiana, which will assume all deposits of First National […]

Northern Star Bank, Mankato, MN, Becomes 18th Bank Failure of 2014

NSB

State regulators swooped in today to close the Northern Star Bank, Mankato, Minnesota.  After closing the Bank, the Minnesota Department of Commerce appointed the FDIC as receiver.  The FDIC in turn sold the failed bank to BankVista, Sartell, MN, under a purchase and assumption agreement. Northern Star Bank has been under regulatory scrutiny for years […]

Banks Have Just Lost Their Biggest Profit Center – What Will Replace Billions of Profits from Loan-Loss Releases?

loan reserves

During the past five years bankers have reaped billions of dollars in profits by simply making accounting entries instead of making loans. What was the biggest source of banking industry profit growth over the past five years?  As noted repeatedly in FDIC Quarterly Banking Profile reports, the biggest contribution to earnings growth has come from […]

Over 8,500 Banks Have Disappeared Since 1990 – “Too Big to Fail” Remains a Banking Reality

Assets FDIC Insured I

The latest FDIC Quarterly Banking Profile highlights the sharp decline in the number of banks over the past 24 years. For the quarter ending September 30, 2014 the number of FDIC insured institutions totaled 6,589 down by 56 percent from a total of 15,158 in 1990.  Since December 1998 the number of banks has dropped […]