The continued decline in real estate values and aggressive lending during the real estate boom continue to haunt the banking industry. Regulators closed four banks in three states this week bringing the total banking failures for the year to 84.
Two banks were closed in Georgia which now accounts for 26% of all U.S. banking failures this year. Two additional banks were closed in Florida and Colorado.
The total assets of the four collapsed banks totaled $2 billion and total losses to the FDIC Deposit Insurance Fund came in at $358.8 million. A total of 406 banks have now failed since 2007 and the number of potential banking failures on the FDIC’s Problem Bank List has soared to 865 from only 76 in 2007. Banks classified as “problem banks” account for almost 12% of all federally insured institutions.
The largest banking failure of the week was giant Community Banks of Colorado with 40 branches and $1.38 billion in assets.
Problems plaguing banks include a weak economy, declining consumer income, stricter regulation, increased capital requirements, weak loan growth and the inability to raise additional capital from skeptical investors.
The four banks that failed this week are listed below. Please click on the link for detailed information.
Old Harbor Bank, Florida – Failed Bank #81
Decatur First Bank, Georgia – Failed Bank #82
Community Capital Bank, Georgia – Failed Bank #83
Community Banks of Colorado, Co – Failed Bank #84