Regulators closed four banks in Tennessee, Minnesota and Florida, bringing the total for the year to seven. Tennessee, with two bank closings, had previously not had a single bank failure since 2002.  The combined assets of the two failed banks in Tennessee totaled $1.5 billion.  Tennessee Commerce Bank of Franklin, TN, became the first billion dollar bank failure of 2012.  Last [...]

The FDIC issued 57 enforcement actions against banks in December 2011, down from 72 in November. The December enforcement actions included 9 consent orders, 19 civil money penalties, 4 prompt corrective actions, 3 voluntary terminations of insurance, 12 removal and prohibition orders and 10 orders terminating previous consent orders and cease and desist orders. A consent order is [...]

A total of 92 banks failed during 2011, signaling a continuation of the crisis in the banking industry.  Although total banking failures during 2011 declined from the previous year, the number remains historically high.  The last time more than 50 banks failed in one year was 1992 or 20 years ago. The complete list of 2011 banking failures is listed below followed by some interesting [...]

The number of banks on the confidential FDIC Problem Bank List is at a 20 year high.  As of September 30, 2011, there were 844 institutions on the Problem Bank List, the largest number since 1992 when the total was 1,066. Since the beginning of the financial crisis in 2008, a total of 417 banks have failed nationwide, yet the number of problem banks remains stubbornly high.  Considering [...]

During 2011, Georgia had the largest number of banking failures in the United States, with 23 failed banks that accounted for 25% of all banking failures.  As regulators closed the first failed banks of the new year, Georgia was once again on the list of failed banks with the closing of a large community bank. The First State Bank, Stockbridge, GA, was closed today by the Georgia [...]

The first banking failure of 2012 occurred in Florida as regulators closed Central Florida State Bank, Belleview, Florida.   During 2011, Florida had 13 banking failures, second only to Georgia which witnessed the closing of 23 banks.  Combined, Florida and Georgia accounted for 39% of the 92 bank failures that occurred during 2011. State regulators appointed the FDIC as receiver [...]

In its capacity as receiver for failed banks, the FDIC is responsible for either selling or winding down the operations of failed banks.  In the vast majority of cases, the FDIC is able to sell a failed bank to a purchaser who agrees to purchase some or all of the assets of the failed institution. In order to attract bids on failed banks, the FDIC agrees to absorb a large percentage [...]

Welcome to Banking Update, a roundup of articles and news from around the Internet.  Banks continue to be sued for selling defective mortgages, the Fed says a housing recovery is essential for economic recovery, Americans still believe owning a home is part of the “American dream”, banks are still engaged in risky behavior, savings rates are negative, European banks [...]

The FDIC issued a total of 72 enforcement actions against banks in November 2011, down slightly from 75 in October. Included in the November enforcement actions were 9 civil money penalties, 1 prompt corrective action and 13 consent orders.  The FDIC also terminated 37 consent orders and prompt corrective action directives due to either the failure of the bank involved or compliance [...]

Western National Bank, Phoenix, AZ, was closed today by the Comptroller of the Currency and the FDIC was appointed as receiver.   The FDIC entered into a purchase and assumption agreement with Washington-Federal , Seattle, Washington, to assume all deposits of failed Western National Bank. Western National had three branches, all of which will reopen on Monday as branches of Washington-Federal.  [...]