01.31.2011
updated 02.02.2011
11 Bank Failures in 2011
original article written by Net Advisor™
To start off the new year, the FDIC seized 11 new banks for the month of January. All of the banks were resold to other lenders with FDIC backed loan loss guarantees except FirsTier Bank in Louisville, CO and Enterprise Banking Company in McDonough, GA. FirsTier and Enterprise both were in situations where no one wanted to bid for the banks even with apparent FDIC guarantees. FirsTier shut down permanently on January 28, 2011. Enterprise will permanently shut down on February 28, 2011.
The FDIC has reportedly been still operating at losses of $8 Billion as of 09-30-2010. (Source: Zacks Investment Research).
Despite the economy appearing to be more stable, the number of bank failures are increasing. In 2007 the FDIC closed 3 banks. In 2008 there were 28 failed banks. This number surged in 2009 with 140 bank failures. Last year (2010) we saw another round of 157 failed banks.
The FDIC’s Problem Banks List which is not public information (due to fears of a bank run), grew to 860 banks – “the most in 17 years” (Source: BloomBerg/ BusinessWeek). Clearly this will take years to close and clean up bad bank assets mostly stemming from the housing/real estate issues and other non-performing loan portfolios.
For 2011, NetAdvisor.org will be reporting on the total number of bank failures on a periodic basis as opposed to weekly unless unique situations occur that may be more headline news.
The following chart depicts the failed institutions for January 2011:
Bank Name |
City |
State |
Cert# |
Closing Date |
2011 Fail# |
| First Community Bank | Taos | NM | 12261 | January 28, 2011 | #11 |
| FirsTier Bank | Louisville | CO | 57646 | January 28, 2011 | #10 |
| Evergreen State Bank | Stoughton | WI | 5328 | January 28, 2011 | #09 |
| The First State Bank | Camargo | OK | 2303 | January 28, 2011 | #08 |
| United Western Bank | Denver | CO | 31293 | January 21, 2011 | #07 |
| The Bank of Asheville | Asheville | NC | 34516 | January 21, 2011 | #06 |
| CommunitySouth Bank & Trust | Easley | SC | 57868 | January 21, 2011 | #05 |
| Enterprise Banking Company | McDonough | GA | 19758 | January 21, 2011 | #04 |
| Oglethorpe Bank | Brunswick | GA | 57440 | January 14, 2011 | #03 |
| Legacy Bank | Scottsdale | AZ | 57820 | January 7, 2011 | #02 |
| First Commercial Bank of Florida | Orlando | FL | 34965 | January 7, 2011 | #01 |
See the other bank failures and history on our Bank Failure Tracker
(Chart Data Source: FDIC)
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