The First National Bank of Davis and Legacy Bank Closed By Regulators

Two banking failures in Oklahoma and Wisconsin have raised the number of banking failures for 2010 to 25.  Most of the banking failures this year have been smaller banking institutions that cannot raise capital or compete with larger banks.

Banking failures have increased steadily since 2007 as a tidal wave of defaulting loans and plunging collateral values have decimated banking balance sheets.  A total of 157 banking failures occurred during 2010, the most since 1992 which saw 181 bank failures.

The FDIC’s latest Quarterly Banking Profile as of December 31, 2010, classifies 884 banks as “Problem Banks” which face potential failure.  The number of problem banks now total 12% of all FDIC insured institutions and has increased from the previous quarter’s total of 860.  The average total assets of a problem bank, according to FDIC statistics, totals $441 million.

Highlights of this week’s banking failure are:

Failed First National Bank of Davis, OK, appeared to be a healthy bank based on reported financial results.  Numerous irregularities discovered after a routine OCC audit in March lead to the firing of the Bank’s president and the rapid closing of the Bank by regulators.

The two failed banks had total assets of $280.6 million.

Total loss to the FDIC Deposit Insurance Fund for the two banking failures was $70.0 million.  The loss to the FDIC for all banking failures during 2011 totals $1.81 billion.

Please click on the link below for details on each banking failure:

Bank Failure #24 – First National Bank of Davis, Davis, OK

Bank Failure #25 –  Legacy Bank, Milwaukee, WI


  1. The pace of failures has slowed when compared to prior years, and for the first time this cycle that trend has continued for more than two weeks (we had a slowing earlier this year also). Will that trend continue? It seems too early to tell, but we made an interactive graph that plots each year separately so you can better analyze the pace of failures. We will post updates regularly, but the most recent is our March 21st posting, and you can find it here: Just click on the image to use the interactive map. Use the slider at the bottom to zoom in on key areas. Or check out the interactive failed bank map that gives a performance summary for each failed institution:

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