First Cornerstone Bank, King of Prussia, PA – Largest Bank Failure of 2016

The largest banking failure of the year occurred when state regulators closed the First Cornerstone Bank, King of Prussia, PA.  In order to protect depositors, the FDIC in its role as receiver, entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina. First Cornerstone Bank was established in March […]

The Bank of Georgia Closed By Regulators – 7th Bank Failure of 2015

After almost a three month hiatus of bank failures, regulators closed The Bank of Georgia, Peachtree City, Georgia.  Fulfilling one of its primary roles as guarantor of depositor funds, the FDIC sold the failed bank to Fidelity Bank, Atlanta, GA, which will assume all of the deposits of The Bank of Georgia. Established in February 2000 by […]

Edgebrook Bank, IL, Closed by Regulators – Fifth Bank Failure of 2015

After over a two month hiatus with no bank closings, regulators swooped in to close the Edgebrook Bank, Chicago, Illinois.  The last banking failure occurred on February 28, 2015 when regulators closed the Doral Bank, San Juan, Puerto Rico. After the Illinois Department of Financial & Professional Regulation closed Edgebrook Bank, the FDIC was appointed […]

Doral Bank Collapses After Years of Financial Losses – Largest Bank Failure Since 2010

The largest bank failure since 2010 left the FDIC on the hook for almost $1 billion in losses as the giant $5.9 billion asset Doral Bank, San Juan, Puerto Rico, was closed by bank regulators.  Doral Bank has been a bank failure waiting to happen as years of losses and economic turmoil in Puerto Rico […]

Highland Community Bank, IL, Second Bank Failure of 2015

The second bank failure of the year occurred in Illinois when state regulators closed Highland Community Bank, Chicago, IL.  During 2014 Illinois had five banking failures, the most of any state. After closing Highland Community Bank, state regulators appointed the FDIC as  receiver.  To protect depositors the FDIC sold the failed bank to United Fidelity […]

Bank of Wausau, WI, Closed by Regulators – 18th Bank Failure of 2013

Bank of Wausau, a small community bank serving central Wisconsin, was shut down by state financial regulators who appointed the FDIC as receiver.  To protect depositors, the FDIC sold the failed bank to Nicolet National Bank, Green Bay, Wisconsin, which will assume all deposits. All depositors of Bank of Wausau will automatically become depositors of […]

Sunrise Bank, GA, Closed As Regulators Zero In On Capitol Bancorp

Regulators closed the second bank of the day controlled by Capitol Bancorp, the troubled holding company that holds 11 different banks in nine different states.  Sunrise Bank, Valdosta, GA, was closed by state regulators while earlier in the day, regulators closed Pisgah Community Bank, N.C., also owned by Capitol Bancorp. The FDIC, acting as receiver, […]

Will the Failure of Pisgah Community Bank Trigger the Collapse of 10 Related Banks?

Bank failures don’t come much smaller than today’s closing of Pisgah Community Bank, Asheville, N.C.  Total assets at Pisgah amounted to only $21.9 million, smaller than what many of the top executives take home in a year at the “too big to fail” banks. Pisgah Community Bank was established on May 15, 2008 on the […]

What a Collapsed Banking System Looks Like

In the 1930’s the collapse of the banking system propelled the world into an economic collapse.  Depositors lost their savings, confidence was shattered, companies starved for capital went out of business overnight, borrowers defaulted en masse and unemployment soared.  A collapsed banking system guarantees an instant economic depression. A mere generation later, the world is […]

Frontier Bank, LaGrange, GA, Closed By Regulators, Largest Bank Failure of 2013

Frontier Bank, La Grange, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver.  The FDIC sold the failed bank to HeritageBank of the South, Albany, Georgia.  HeritageBank will assume all deposits of Frontier. Frontier Bank was established in 1946 and originally named Valley National Bank of […]