Three banking failures in two different states increased the number of banking collapses in 2011 to fourteen banks.
The FDIC, with a long list of 860 Problem Banks, was hit for $118.4 million in losses. The total cost of banking failures in 2011 now totals $1.3 billion.
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:
- The three failed banks had combined assets of $442.5 million and resulted in a loss to the FDIC Deposit Insurance Fund of $118.4 million. Total losses on failed banks for 2011 now totals $1.3 billion.
- The week’s largest banking failure was American Trust Bank of Georgia which had assets of $238.2 million.
- Two out of this week’s three banking failures occurred in Georgia. Since the banking crisis got into full swing in 2008, a total of 55 banks have failed in Georgia, the most for any state.
For details on each bank failure, please click on the link below.
Bank Failure #12 – American Trust Bank, Georgia
Bank Failure #13 – North Georgia Bank, Georgia
Bank Failure #14 – Community First Bank, Illinois