10.16.2012
To Date: 43 Bank Failures in 2012
original article written by Net Advisor™
WASHINGTON DC. During 2011, there were a total of 92 bank failures. This was less than the 157 bank failures in 2010, and less than the 115 bank failures in 2009. It seems that we hardly hear about bank failures anymore. But the sad truth is that although the number of failed banks have decreased, bank failures have not gone away.
[1] The following chart depicts all failed banks from January 1, 2012 to September 28, 2012:
| Bank Name | City | State | FDIC CERT # | Closing Date | Fail # |
| First United Bank | Crete | IL | 20685 | 09/28/12 | #43 |
| Truman Bank | St. Louis | MO | 27316 | 09/14/12 | #42 |
| First Commercial Bank | Bloomington | MN | 35246 | 09/07/12 | #41 |
| Waukegan Savings Bank | Waukegan | IL | 28243 | 08/03/12 | #40 |
| Jasper Banking Company | Jasper | GA | 16240 | 07/27/12 | #39 |
| Second Federal Savings and Loan Association of Chicago | Chicago | IL | 27986 | 07/20/12 | #38 |
| Heartland Bank | Leawood | KS | 1361 | 07/20/12 | #37 |
| First Cherokee State Bank | Woodstock | GA | 32711 | 07/20/12 | #36 |
| Georgia Trust Bank | Buford | GA | 57847 | 07/20/12 | #35 |
| The Royal Palm Bank of Florida | Naples | FL | 57096 | 07/20/12 | #34 |
| Glasgow Savings Bank | Glasgow | MO | 1056 | 07/13/12 | #33 |
| Montgomery Bank & Trust | Ailey | GA | 19498 | 07/06/12 | #32 |
| The Farmers Bank of Lynchburg | Lynchburg | TN | 1690 | 06/15/12 | #31 |
| Security Exchange Bank | Marietta | GA | 35299 | 06/15/12 | #30 |
| Putnam State Bank | Palatka | FL | 27405 | 06/15/12 | #29 |
| Waccamaw Bank | Whiteville | NC | 34515 | 06/08/12 | #28 |
| Farmers’ and Traders’ State Bank | Shabbona | IL | 9257 | 06/08/12 | #27 |
| Carolina Federal Savings Bank | Charleston | SC | 35372 | 06/08/12 | #26 |
| First Capital Bank | Kingfisher | OK | 416 | 06/08/12 | #25 |
| Alabama Trust Bank, National Association | Sylacauga | AL | 35224 | 05/18/12 | #24 |
| Security Bank, National Association | North Lauderdale | FL | 23156 | 05/04/12 | #23 |
| Palm Desert National Bank | Palm Desert | CA | 23632 | 04/27/12 | #22 |
| Plantation Federal Bank | Pawleys Island | SC | 32503 | 04/27/12 | #21 |
| Inter Savings Bank, fsb D/B/A InterBank, fsb | Maple Grove | MN | 31495 | 04/27/12 | #20 |
| HarVest Bank of Maryland | Gaithersburg | MD | 57766 | 04/27/12 | #19 |
| Bank of the Eastern Shore | Cambridge | MD | 26759 | 04/27/12 | #18 |
| Fort Lee Federal Savings Bank, FSB | Fort Lee | NJ | 35527 | 04/20/12 | #17 |
| Fidelity Bank | Dearborn | MI | 33883 | 03/30/12 | #16 |
| Premier Bank | Wilmette | IL | 35419 | 03/23/12 | #15 |
| Covenant Bank & Trust | Rock Spring | GA | 58068 | 03/23/12 | #14 |
| New City Bank | Chicago | IL | 57597 | 03/09/12 | #13 |
| Global Commerce Bank | Doraville | GA | 34046 | 03/02/12 | #12 |
| Home Savings of America | Little Falls | MN | 29178 | 02/24/12 | #11 |
| Central Bank of Georgia | Ellaville | GA | 5687 | 02/24/12 | #10 |
| SCB Bank | Shelbyville | IN | 29761 | 02/10/12 | #9 |
| Charter National Bank and Trust | Hoffman Estates | IL | 23187 | 02/10/12 | #8 |
| BankEast | Knoxville | TN | 19869 | 01/27/12 | #7 |
| Patriot Bank Minnesota | Forest Lake | MN | 34823 | 01/27/12 | #6 |
| Tennessee Commerce Bank | Franklin | TN | 35296 | 01/27/12 | #5 |
| First Guaranty Bank and Trust Company of Jacksonville | Jacksonville | FL | 16579 | 01/27/12 | #4 |
| American Eagle Savings Bank | Boothwyn | PA | 31581 | 01/20/12 | #3 |
| The First State Bank | Stockbridge | GA | 19252 | 01/20/12 | #2 |
| Central Florida State Bank | Belleview | FL | 57186 | 01/20/12 | #1 |
[2] Obama Administration Allows Less Competition?
What is interesting to note is that despite the Obama Administration’s aim to stop banks becoming “too big to fail” that is exactly what the Administration has been doing. Most of the failed banks have been acquired by bigger banks. Many of these bigger banks acquired multiple failed banks from the FDIC. The result: Banks are getting bigger, not smaller as the Obama Administration championed. As of 2011, just 5 banks now equals 56% of the U.S. economy verses 43% in 2007 (Source: BusinessWeek).
“Five banks — JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc., Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. — held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to central bankers at the Federal Reserve.”
— Source: BusinessWeek, 04-16-2012
Since 2009, the FDIC helped smaller and mid-sized banks become bigger banks too. State Bank and Trust Company acquired 12 failed banks – all of them in Georgia. The Bank of the Ozarks also acquired 7 of the failed FDIC insured banks – 5 of which are also in Georgia. The FDIC allowed CenterState Bank of Florida, N.A. to reduce competition in Florida by allowing it to acquire 6 failed Florida banks. Stearns Bank, N.A. acquired 8 FDIC seized banks. Central Bank acquired 6 failed banks, 5 of which in Minnesota.
The FDIC also helped Community & Southern Bank acquire 7 banks – all of the located in Georgia. First Michigan Bank acquired 7 banks (4 in Illinois, 2 in Michigan, and 1 in Wisconsin). The Bank of the Ozarks acquired 7 failed FDIC insured banks. First-Citizens Bank & Trust Company and MB Financial Bank, N.A. each acquired 6 failed banks from the FDIC.
A more well known “big bank” institution, U.S. Bank N.A. managed to acquire 13 failed FDIC banks from November 2008 to January 2011 (Banking Acquisition Data Source: FDIC).
[3] Failed Banks by State
There are several states that have the highest concentration of bank failures according to the FDIC.
Top 5 Bank Failures by State
- #1 Georgia Bank Failures = 85
(100% bank failures occurred from 2008 to 2012)
- #2 Florida Bank Failures = 65
(62 out of 65 bank failures occurred from 2008 to 2012)
- #3 Illinois Bank Failures = 57
(55 out of 57 bank failures occurred from 2008 to 2012)
- #4 California Bank Failures = 40
(39 out of 40 bank failures occurred from 2008 to 2012)
- #5 Minnesota Bank Failures = 21
(100% bank failures occurred from 2008 to 2012)— Source: FDIC (as of 10-11-2012)
[4] Too Big To Fail?
Most of the major and other banks have re-paid their loans (with interest) back to the U.S. Treasury. According to CNN, there is still some $108 Billion of outstanding bank bail-out loans outstanding. Despite the thinking that the economy is fine, many banks are still suffering from losses from the housing crash. Despite the idea of ending “too big to fail” legislation (PDF) banks are getting even bigger since the housing crash, not smaller; and like the housing crash government is once again directly behind this effort too.
Credits: Image public domain U.S. Gov.
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