Four banking failures in four different states have increased total banking failures for 2011 to 18. Small and mid sized banks continue to face the most difficulty as they find it impossible to raise additional capital required by regulators.
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 860 banks or 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:
- The four failed banks had combined assets of $810.7 million and resulted in a loss to the FDIC Deposit Insurance Fund of $144.9 million. Total losses on failed banks for 2011 now totals $1.45 billion.
- The week’s largest banking failure was Peoples State Bank, Hamtramck, MI, which had assets of $390.5 million.
- In a sign of increased optimism by bidders for failed banks, the FDIC did not enter into loss-share agreements on three of the failed bank purchases.
For details on each bank failure, please click on the link below.
Bank Failure #15 – Sunshine State Community Bank, FL
Bank Failure #16 – Peoples State Bank, MI
Banking Failure #17 – Badger State Bank, WI
Banking Failure #18 – Canyon National Bank, CA