After only two bank failures during May, regulators got off to a fast start in June, closing four banks in four different states. With the financial system in a period of temporary calm, the number of bank closings during 2012 has tapered off from last year’s levels. While regulators have closed 28 banks thus far during 2012, a total of 45 banks had failed by this time last year.
In addition to a lower number of bank closings during 2012, the size of the banks that have failed have been smaller when measured by total assets. As of June 3, 2011, the 45 banks that failed had total assets of $19.1 billion and aggregate losses totaled $3.7 billion. The average bank that failed by this time last year had average total assets of $424.4 million and the average loss on each closing amounted to $82.2 million.
The 28 failed banks for the comparable 2012 time period through June 8, 2012 had total assets of $7.3 billion and aggregate losses of $1.6 billion for an average of $260.7 million in total assets and an average loss of $57.1 million per failed bank. The 772 banks on the FDIC Problem Bank List as of March 31, 2012 had total assets of $292.1 billion for an average of $378.4 million in total assets per problem bank.
The four banks that failed for the week ended June 8, 2012 had total assets of $676.7 million. Total losses to the FDIC Deposit Insurance Fund for the four bank failures was $80.8 million. Three of the four bank failures this week were relatively small. Two of this week’s failed banks had been in operation for over 100 years.
Listed below are the four bank failures for the week ending June 8, 2012. Please click on the link for detailed information on each bank closing.
1. First Capital Bank, OK – Bank Failure #25
First Capital had been in business since 1902, serving Oklahoma residents long before Oklahoma became a state. First Capital had total assets of only $46.1 million as of March 31, 2012.
2. Carolina Federal Savings Bank, SC – Bank Failure #26
Carolina FSB was a relatively small bank that had been in operation since 1960 but was closed by regulators due to heavy losses on defaulted loans.
3. Farmers and Traders State Bank, IL – Bank Failure #27
Farmers and Traders was the smallest bank failure of the week with total assets of only $43.1 million. The failed bank had managed to survive for over 100 years since it was established in 1905.
4. Waccamaw Bank, NC – Bank Failure #28
Waccamaw Bank had total assets of $533.1 million and was a publicly trading bank. Unlucky shareholders in this Bank have seen the value of their shares drop from the $15 range in 2008 to zero after regulators closed the bank.