The Amazing Decline in the Number of Banks Has Resulted in Big Bank Domination

The number of banks operating in the United States has been in an amazing decline for the past 25 years.  Many institutions disappeared after going bust during the savings and loan crisis of the early 1990’s while hundreds more collapsed during the financial panic and banking crisis that started in 2008. Since 2008 a total […]

Edgebrook Bank, IL, Closed by Regulators – Fifth Bank Failure of 2015

After over a two month hiatus with no bank closings, regulators swooped in to close the Edgebrook Bank, Chicago, Illinois.  The last banking failure occurred on February 28, 2015 when regulators closed the Doral Bank, San Juan, Puerto Rico. After the Illinois Department of Financial & Professional Regulation closed Edgebrook Bank, the FDIC was appointed […]

Bank Failures Decline But Still Above Pre Banking Crisis Levels

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 […]

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

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

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

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

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

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

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 […]

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

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 […]