Four Banking Failures In Four States Cost FDIC $455 Million

January 21, 2010 – The FDIC, with a long list of 860 Problem Banks, was hit for $455 million in losses as four banks collapsed across four states.

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:

1. This week’s four failed banks had combined assets of $2.79 billion and resulted in a loss to the FDIC Deposit Insurance Fund of $454.9 million.
2. The week’s largest banking failure was United Western Bank of Colorado which had assets of $2.05 billion.
3. In what has become a routine event, one of this week’s failed banks was sold by the FDIC to a bank that has not repaid the US Treasury for money loaned to them under the Troubled Asset Relief Program (TARP).
4. Some depositors at Enterprise Banking lose money while others do not – see Enterprise Bank Failure Exposes Inequity of FDIC Deposit Insurance.

Please click on the following links for detailed information on each bank closing.

Enterprise Banking Company, McDonough, GA – Banking Failure #4

CommunitySouth Bank & Trust, Easley, SC – Banking Failure #5

The Bank of Asheville, Asheville, NC – Banking Failure #6

United Western Bank, Denver, CO – Banking Failure #7