2012 Bank Failure List (43)

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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