02.13.2012
Total of 92 Bank Failures in 2011
original article written by Net Advisor™
During 2011, there were a total of 92 bank failures. This was less than the 157 bank failures in 2010, and the 115 bank failures in 2009. The following chart depicts all failed institutions for 2011:
| Bank Name | City | State | FDIC CERT# | Closing Date | Fail # |
| Western National Bank | Phoenix | AZ | 57917 | 12/16/11 | #92 |
| Premier Community Bank of the Emerald Coast | Crestview | FL | 58343 | 12/16/11 | #91 |
| Central Progressive Bank | Lacombe | LA | 19657 | 11/18/11 | #90 |
| Polk County Bank | Johnston | IA | 14194 | 11/18/11 | #89 |
| Community Bank of Rockmart | Rockmart | GA | 57860 | 11/10/11 | #88 |
| SunFirst Bank | Saint George | UT | 57087 | 11/04/11 | #87 |
| Mid City Bank, Inc. | Omaha | NE | 19397 | 11/04/11 | #86 |
| All American Bank | Des Plaines | IL | 57759 | 10/28/11 | #85 |
| Community Banks of Colorado | Greenwood Village | CO | 21132 | 10/21/11 | #84 |
| Community Capital Bank | Jonesboro | GA | 57036 | 10/21/11 | #83 |
| Decatur First Bank | Decatur | GA | 34392 | 10/21/11 | #82 |
| Old Harbor Bank | Clearwater | FL | 57537 | 10/21/11 | #81 |
| Country Bank | Aledo | IL | 35395 | 10/14/11 | #80 |
| First State Bank | Cranford | NJ | 58046 | 10/14/11 | #79 |
| Blue Ridge Savings Bank, Inc. | Asheville | NC | 32347 | 10/14/11 | #78 |
| Piedmont Community Bank | Gray | GA | 57256 | 10/14/11 | #77 |
| Sun Security Bank | Ellington | MO | 20115 | 10/07/11 | #76 |
| The RiverBank | Wyoming | MN | 10216 | 10/07/11 | #75 |
| First International Bank | Plano | TX | 33513 | 09/30/11 | #74 |
| Citizens Bank of Northern California | Nevada City | CA | 33983 | 09/23/11 | #73 |
| Bank of the Commonwealth | Norfolk | VA | 20408 | 09/23/11 | #72 |
| First National Bank of Florida | Milton | FL | 25155 | 09/09/11 | #71 |
| CreekSide Bank | Woodstock | GA | 58226 | 09/02/11 | #70 |
| Patriot Bank of Georgia | Cumming | GA | 58273 | 09/02/11 | #69 |
| First Choice Bank | Geneva | IL | 57212 | 08/19/11 | #68 |
| First Southern National Bank | Statesboro | GA | 57239 | 08/19/11 | #67 |
| Lydian Private Bank | Palm Beach | FL | 35356 | 08/19/11 | #66 |
| Public Savings Bank | Huntingdon Valley | PA | 34130 | 08/18/11 | #65 |
| The First National Bank of Olathe | Olathe | KS | 4744 | 08/12/11 | #64 |
| Bank of Whitman | Colfax | WA | 22528 | 08/05/11 | #63 |
| Bank of Shorewood | Shorewood | IL | 22637 | 08/05/11 | #62 |
| Integra Bank National Association | Evansville | IN | 4392 | 07/29/11 | #61 |
| BankMeridian, N.A. | Columbia | SC | 58222 | 07/29/11 | #60 |
| Virginia Business Bank | Richmond | VA | 58283 | 07/29/11 | #59 |
| Bank of Choice | Greeley | CO | 2994 | 07/22/11 | #58 |
| LandMark Bank of Florida | Sarasota | FL | 35244 | 07/22/11 | #57 |
| Southshore Community Bank | Apollo Beach | FL | 58056 | 07/22/11 | #56 |
| Summit Bank | Prescott | AZ | 57442 | 07/15/11 | #55 |
| First Peoples Bank | Port St. Lucie | FL | 34870 | 07/15/11 | #54 |
| High Trust Bank | Stockbridge | GA | 19554 | 07/15/11 | #53 |
| One Georgia Bank | Atlanta | GA | 58238 | 07/15/11 | #52 |
| Signature Bank | Windsor | CO | 57835 | 07/08/11 | #51 |
| Colorado Capital Bank | Castle Rock | CO | 34522 | 07/08/11 | #50 |
| First Chicago Bank & Trust | Chicago | IL | 27935 | 07/08/11 | #49 |
| Mountain Heritage Bank | Clayton | GA | 57593 | 06/24/11 | #48 |
| First Commercial Bank of Tampa Bay | Tampa | FL | 27583 | 06/17/11 | #47 |
| McIntosh State Bank | Jackson | GA | 19237 | 06/17/11 | #46 |
| Atlantic Bank and Trust | Charleston | SC | 58420 | 06/03/11 | #45 |
| First Heritage Bank | Snohomish | WA | 23626 | 05/27/11 | #44 |
| Summit Bank | Burlington | WA | 513 | 05/20/11 | #43 |
| First Georgia Banking Company | Franklin | GA | 57647 | 05/20/11 | #42 |
| Atlantic Southern Bank | Macon | GA | 57213 | 05/20/11 | #41 |
| Coastal Bank | Cocoa Beach | FL | 34898 | 05/06/11 | #40 |
| Community Central Bank | Mount Clemens | MI | 34234 | 04/29/11 | #39 |
| The Park Avenue Bank | Valdosta | GA | 19797 | 04/29/11 | #38 |
| First Choice Community Bank | Dallas | GA | 58539 | 04/29/11 | #37 |
| Cortez Community Bank | Brooksville | FL | 57625 | 04/29/11 | #36 |
| First National Bank of Central Florida | Winter Park | FL | 26297 | 04/29/11 | #35 |
| Heritage Banking Group | Carthage | MS | 14273 | 04/15/11 | #34 |
| Rosemount National Bank | Rosemount | MN | 24099 | 04/15/11 | #33 |
| Superior Bank | Birmingham | AL | 17750 | 04/15/11 | #32 |
| Nexity Bank | Birmingham | AL | 19794 | 04/15/11 | #31 |
| New Horizons Bank | East Ellijay | GA | 57705 | 04/15/11 | #30 |
| Bartow County Bank | Cartersville | GA | 21495 | 04/15/11 | #29 |
| Nevada Commerce Bank | Las Vegas | NV | 35418 | 04/08/11 | #28 |
| Western Springs National Bank and Trust | Western Springs | IL | 10086 | 04/08/11 | #27 |
| The Bank of Commerce | Wood Dale | IL | 34292 | 03/25/11 | #26 |
| Legacy Bank | Milwaukee | WI | 34818 | 03/11/11 | #25 |
| First National Bank of Davis | Davis | OK | 4077 | 03/11/11 | #24 |
| Valley Community Bank | St. Charles | IL | 34187 | 02/25/11 | #23 |
| San Luis Trust Bank, FSB | San Luis Obispo | CA | 34783 | 02/18/11 | #22 |
| Charter Oak Bank | Napa | CA | 57855 | 02/18/11 | #21 |
| Citizens Bank of Effingham | Springfield | GA | 34601 | 02/18/11 | #20 |
| Habersham Bank | Clarkesville | GA | 151 | 02/18/11 | #19 |
| Canyon National Bank | Palm Springs | CA | 34692 | 02/11/11 | #18 |
| Badger State Bank | Cassville | WI | 13272 | 02/11/11 | #17 |
| Peoples State Bank | Hamtramck | MI | 14939 | 02/11/11 | #16 |
| Sunshine State Community Bank | Port Orange | FL | 35478 | 02/11/11 | #15 |
| Community First Bank Chicago | Chicago | IL | 57948 | 02/04/11 | #14 |
| North Georgia Bank | Watkinsville | GA | 35242 | 02/04/11 | #13 |
| American Trust Bank | Roswell | GA | 57432 | 02/04/11 | #12 |
| First Community Bank | Taos | NM | 12261 | 01/28/11 | #11 |
| FirsTier Bank | Louisville | CO | 57646 | 01/28/11 | #10 |
| Evergreen State Bank | Stoughton | WI | 5328 | 01/28/11 | #9 |
| The First State Bank | Camargo | OK | 2303 | 01/28/11 | #8 |
| United Western Bank | Denver | CO | 31293 | 01/21/11 | #7 |
| The Bank of Asheville | Asheville | NC | 34516 | 01/21/11 | #6 |
| CommunitySouth Bank & Trust | Easley | SC | 57868 | 01/21/11 | #5 |
| Enterprise Banking Company | McDonough | GA | 19758 | 01/21/11 | #4 |
| Oglethorpe Bank | Brunswick | GA | 57440 | 01/14/11 | #3 |
| Legacy Bank | Scottsdale | AZ | 57820 | 01/07/11 | #2 |
| First Commercial Bank of Florida | Orlando | FL | 34965 | 01/07/11 | #1 |
The Banks No One Wanted
It is interesting to note that all but two of the above failed banks were acquired by other institutions in 2011. The acquiring banks were done under government financial assistance (aka bailout guarantees) so the acquirer will have a hard time losing money, thanks to loan loss guarantees by the FDIC.
We hear government officials talk about “no more bank bail-outs,” yet somehow we missed the part of financing the failed banks so the buyer almost can’t lose money because the FDIC picks up most of the risk. To be fair, the FDIC has revised this “Loss Share Program” as of 09-30-2011. But the government is still backing loan loss guarantees instead of just liquidating the bad banks entirely.
The two banks that no one wanted to own in 2011 even with government guarantees were Enterprise Banking Company in McDonough, GA (Fail Date: Jan 21, 2011, FDIC Cert#19758) and FirsTier Bank in Louisville, CO (Fail Date: Jan 28, 2011, FDIC Cert#57646).
FDIC Running on Empty – Got $19 Billion?
The FDIC announced October 2011 that they expect to lose another $19 Billion between 2011 and 2015 based on current projections of their seized failed banks. The only problem is the FDIC doesn’t have $19 Billion. The Federal Deposit Insurance Corp is sitting on about $3.9 Billion in cash reserves, just about $15 billion short of what they need.
A $25 Billion Bank Settlement
If you are wondering why the Obama Administration has stepped up pushing to get money out of the banks, could it be due to the lack of funding needed to keep the FDIC afloat or an election year talking point?
The housing market peaked in 2006. I started discussing this publicly in 2007 and by September 2008 most people were pretty clear what was going on in the U.S. financially. President Obama took office Jan 2009, and three years later (and in an election year), is now seeking to squeeze money from the banks.
On February 9, 2012, the Obama Administration along with state regulators and five banks agreed to a $25 Billion settlement over alleged “foreclosure abuses.”
The only problem is none of this money will go to bailout the FDIC, but might be a good idea. It would be a bit troublesome if the American public or even foreign governments and investors learned that our own bank deposit guarantor was at risk of running out of money to pay depositors in the event of a bank failure big or small.
It would be wise for the Administration to get the FDIC in a stronger financial position with such settlement instead of watching the FDIC go to Congress and ask the tax payers to bail them out.
$500 Billion Credit Line
Americans would not likely want to hear about another bank bail-out, or a failing government agency that required a bailout in order to bailout someone else. To solve this problem in 2009 the then Democratic Congressional Majority and the Obama Administration gave the FDIC a $500 Billion credit line from the U.S. Treasury.
“Chairman Bair distinguished the…reserves from the FDIC’s cash resources, which included…the ability to borrow up to $500 billion from the Treasury. “
— Source: FDIC (August 27, 2009, Parr 14 (PDF highlighted)
The FDIC credit line from the U.S. Treasury was reduced to $100 Billion after 2010 under legislation by now retired Senate Banking Committee Chairman, Chris Dodd (D-Conn.) The U.S. doesn’t have $100 Billion in credit anyway, it would likely have to borrow the money from China, only to lend to the FDIC, which in turn would now have money to bailout whomever. Effectively, this legislation allows the FDIC to borrow money from the Treasury without ever having to ask for taxpayer or Congressional approval in the future.
Terms of Bank Settlement – FDIC Gets $0.00
Under the terms of the current bank settlement according to a published report, “The banks are required to dedicate $20 billion in relief to homeowners, including $10 billion toward reducing principal for struggling borrowers. The banks also must provide $5 billion in cash to federal and state governments to assist their foreclosure relief programs.”
Approximately 1 million homeowners (who are current with their mortgage) and whose appraisal is less than what the home is currently worth should be able to refinance at today’s lower interest rate. Whether one can still afford the home, is another question. Some 750,000 other people who lost their home due to foreclosure (i.e.; non-payment of the home), will each get about $2,000 cash. Only in America could one stop making payments on their mortgage and one day get paid for doing just that.
Housing Crisis Related Articles:
FHA: After 75 Years, Welcome to Risk Management
Top Lobbying Banks Got Biggest Bailouts – But Gov Helped Create the Housing Crash
Chart Data Source: FDIC
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