Four banking failures in four different states increased the number of banking collapses in 2011 to eleven banks.
The FDIC, with a long list of 860 Problem Banks, was hit for $545.5 million in losses. The total cost of the year’s banking failures now totals $1.2 billion.
During 2010 a total of 157 banking failures occurred, the most since 1992 when 181 banks were closed. In 2009 a total of 140 banks were closed. During all of 2008 there were 25 bank failures. There were only 3 bank failures during 2007. No banks failed during 2005 and 2006.
With over 10% of all FDIC insured institutions on the Problem Bank List, the pace of banking failures does not look likely to subside anytime soon (see Seven Reasons Why Banking Failures Will Increase During 2011).
Highlights of this week’s banking failures include:
- This week’s four failed banks had combined assets of $3.38 billion and resulted in a loss to the FDIC Deposit Insurance Fund of $545.5 million. Total losses on failed banks for 2011 now totals $1.2 billion.
- The week’s largest banking failure was First Community Bank of New Mexico which had assets of $2.31 billion.
- Some depositors at FirsTier Bank of Colorado lose money while others do not – see Enterprise Bank Failure Exposes Inequity of FDIC Deposit Insurance.
For details on each bank failure, please click on the link below.
The First State Bank, OK – Banking Failure #8
Evergreen State Bank, WI – Banking Failure #9
FirsTier Bank, CO – Banking Failure #10
First Community Bank, NM – Banking Failure #11