bank failure friday

Bank Failure Friday - one this week, 200 failures expected this year

Yes this one is late. This week's failure was First American State Bank of Minnesota with an estimated FDIC cost of $3.1 million.

But that's not the real story on bank failures. CBS Market Watch is reporting 200 or more banks are expected to fail this year.

The continuing fallout from bad loans made in good years means even more U.S. banks will fail in 2010 than 2009, despite a recovering economy.

That's the prediction of bank analysts who see as many as 200 institutions closing this year, at a potential cost of more than $50 billion to taxpayers, as risky loans approved in 2006 and 2007 take their toll.

There were 140 bank failures in 2009, the cost was $36.5 billion or so.

Even worse, they are not expecting this to be over until 2013.

Bank Failure Friday - 6! Death toll at 130

It's Friday night and that means our latest tally of failed banks.

This week it's quite a haul. 6 banks were seized.

They are with their costs to the FDIC:

  • The Buckhead Community Bank of Atlanta, Georgia - $241.4 million
  • First Security National Bank of Norcross, Georgia - $30.1 million
  • The Tattnall Bank of Reidsville, Georgia - $13.9 million
  • AmTrust Bank of Cleveland, Ohio - $2 billion
  • Benchmark Bank of Aurora, Illinois - $64 million
  • Greater Atlantic Bank of Reston, Virginia - $35 million

AmTrust is the 4th largest bank failure this year and had survived the Great Depression.

Here's a map from CNN of the location of the bank failures:

Bank Failure Friday - Just one this week, toll now 124

Who would think good news would mean just one bank failure in Florida.

Commerce Bank had assets of $79.7 million and total deposits of about $76.7 million, the FDIC said. The FDIC and Central Bank entered into a loss-share transaction on about $61 million of Commerce Bank's assets. The failure is expected to cost the FDIC's insurance fund $23.6 million.

Meanwhile, the New York Times has a good piece, The Pathology of a Financial Crisis.

Bank Failure Friday - 3 more, toll now 123

Yippee! Yea, it's.....Bank Failure Friday. Oops, I guess that's nothing to cheer about, our weekly news report of the latest banking demise.

Let's get to it. Orion Bank Fails.

Naples, Fla.-based Orion Bank, which had $2.7 billion in assets as of last month, was closed by regulators Friday -- one of a trio of failures that will cost the federal deposit insurance fund just over $1 billion.

  • Orion Bank, Florida - FDIC cost $615 million
  • Century Bank, Florida - FDIC cost $344 million
  • Pacific Coast National Bank, California - FDIC cost $27.4 million

Meanwhile the FDIC is requiring banks to prepay 3 years of fees to raise $45 billion.

Bank Failure Friday - Tally now 115

This week's Bank Failure Friday are a freaky horror. 9 banks in major holding company fail.

That's 9, the largest number in one bank failure Friday.

Nine subsidiaries of FBOP Corp., a multistate holding company that included California National Bank of Los Angeles, succumbed Friday to the nationwide banking crisis, bringing to 115 the number of banks closed by regulators so far this year.

The Federal Deposit Insurance Corp. said the nine banks in California, Illinois, Texas and Arizona that made up the privately held FBOP were taken over by U.S. Bancorp (USB, Fortune 500) of Minneapolis. The banks, which had combined assets of $19.4 billion and deposits of $15.4 billion, will open Saturday as U.S. Bank branches.

Bank Failure Friday - Toll to 106

Welcome to Bank Failure Friday where every week, like family Pizza night, we get yet another bank failure.

Update 2. Another one bites the dust. See midtowng's comment.

This is an update. Two more were released after this post making the year's tally 205. Calculated Risk has more.

This week's FDIC seizures are 3 in Florida and one in Georgia:

The 101st failure was American United Bank, of Lawrenceville, Ga., which had $111 million in assets.

The 102nd failure was another Naples, Fla., institution: Hillcrest Bank Florida, which had $83 million in assets.

The 103rd closure was Bradenton, Fla.-based Flagship National Bank, with $190 million in assets.