October 15, 2010 – With eleven weeks still remaining in the year, the number of banking failures for 2010 is fast approaching last year’s total of 140. Three additional bank closings today bring this year’s total bank failures to 132.
Considering the increased number of Problem Banks reported by the FDIC and with eleven weeks still remaining in 2010, this year’s banking failures are on track to far outpace the 140 banking failures of 2009. Over 10% of all FDIC insured institutions are now on the Problem Bank List.
As of the latest report released by the FDIC there were 829 problem banks at June 30, 2010 up from 775 at March 31. Total assets held by the troubled institutions is $403.0 billion, a slight decrease from $431 billion in the previous quarter.
This week’s three banking failures occurred in Missouri and Kansas resulting in estimated losses to the FDIC Deposit Insurance Fund of $507.8 million. The three failed banks had total assets of $1.8 billion and a total of 19 branches.
The largest banking failure of the week was Premier Bank of Missouri with $1.18 billion in total assets. The FDIC was only able to sell $658 million of the failed bank’s assets and the loss taken on Premier Bank amounted to a huge 35% of the failed bank’s total assets.
The failed banks for the week are listed below. Please click on the link for detailed information on each banking failure.
Security Savings Bank, Olathe, Kansas – Banking Failure #130
WestBridge Bank and Trust Company, Chesterfield, Missouri – Banking Failure #131
Premier Bank, Jefferson City, Missouri – Banking Failure #132
A quick look at the troubled asset ratio of these two banks shows that both banks are under some stress. However, their ratios have been improving so it looks like both banks are turning around.