Number of Problem Banks Declines for 15th Consecutive Quarter

According to the latest FDIC Quarterly Banking Profile the number of problem banks continued to decline for the quarter ending December 31, 2014. After reaching a peak of 888 at the end of the first quarter of 2011 the number of problem banks has declined for 15 consecutive quarters.  The number of problem banks is […]

FDIC Problem Bank List Includes Almost 9% of All Banks

The number of problem banks declined slightly during the first quarter of 2013.  According to the latest Quarterly Banking Profile released today by the FDIC, the number of problem banks declined from 651 to 612, for a net reduction of 39 banks. Although profits for the overall banking industry have increased for the past 15 […]

Central Arizona Bank Fails – Third Bank Failure In A Week For Capitol Bancorp, Ltd

In an unusual weekday action, state regulators closed Central Arizona Bank, Scottsdale, AZ, and appointed the FDIC as receiver.  To protect depositors, the FDIC sold the failed bank to Western State Bank, Devils Lake, North Dakota, which will assume all deposits of Central Arizona Bank. With only $31.6 million in assets, the failure of Central […]

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 […]

2012 Bank Failures Lowest Since 2008 As Regulators Close 51 Banks

During the past five years we have witnessed the greatest financial turmoil since the Great Depression.  Hundreds of giant bank failures rocked the nation, real estate values crashed, trillions of dollars of wealth vanished overnight and millions of Americans lost their jobs.  Although a relative calm has been restored due to unprecedented actions by both […]

Bank Earnings Soar To Six Year High But Bank Stocks Still Off 50% From Pre Crisis Levels

According to the latest FDIC Quarterly Banking Profile, the banking industry recorded its 13th consecutive quarterly year-over-year increase in profits.  Total net income for all FDIC-insured institutions rose to $37.6 billion in the third quarter of 2012, a 6.6% increase from the third quarter of last year.  Most of the increase in net earnings were […]

Five Bank Failures Bring Year’s Total To 38 – FDIC Losses Top $1.9 Billion

Regulators had a busy week closing five banks in four different states on Friday.  Although bank failures have been proceeding at a slower pace than last year, the total losses to the FDIC Deposit Insurance Fund now top $1.9 billion and the number of problem banks remains very high considering that we are four years […]

FDIC Issues 53 Enforcement Actions In May

The FDIC announced today a total of 53 enforcement actions for May 2012.  In the previous month, the FDIC had issued 56 enforcements actions. Enforcements actions issued in May included 9 consent orders, 10 civil money penalties, 8 section 19 orders, 13 orders terminating previous consent and cease and desist orders, 2 orders terminating prompt […]

Waccamaw Bank, Whiteville, NC, Closed By Regulators

The North Carolina Office of the Commissioner of Banks closed struggling Waccamaw Bank, Whiteville, NC, after the Bank was unable to raise additional capital.  The FDIC, as receiver, sold the failed bank to First Community Bank, Bluefield, VA. Waccamaw Bank, established in 1997, had been desperately trying to raise additional capital to offset losses from […]

First Capital Bank, Kingfisher, OK, Closed By Regulators After 110 Years Of Operation

Any bank that can stay in business for 110 years must have been doing something right.  First Capital Bank, originally founded in 1902 as Guthrie Savings Bank, provided banking services to its customers at a time when Oklahoma was not yet a state and Guthrie was the capital of the Oklahoma Territory. The long and […]