Bank Failure Thursday: 7 tonight, 52 total for ’09

July 2, 2009

The long weekend will give FDIC extra time to clean up this week’s failures.  So far they’ve announced two, three, six, seven.  Last Friday’s total of five bank failures had been the largest number so far this year.

Six of tonight’s failures are in Illinois.  The seventh announced failure is a big one, with nearly $1.0 billion of assets.  As the evening progresses, I expect there will be more failures in the Mountain and/or Pacific time zones. Looks like tonight’s total will stay at seven.  A record day so far this cycle!

Bank Failure #46 for 2009

  • Bank:  John Warner Bank, Clinton, IL
  • Buyer:  State Bank of Lincoln, Lincoln, IL
  • Vitals:  At 4/30/09, assets of $70 million and deposits of $64 million
  • DIF Damage:  $10 million

#47

  • Bank:  First State Bank of Winchester, Winchester, IL
  • Buyer:  First National Bank of Beardstown, Beardstown, IL
  • Vitals:  At 4/30/09, assets of $36 million and deposits of $34 million
  • DIF Damage:  $6 million

Insert funny Beardstown Ladies joke here.  Yes, they still have a website, though it doesn’t appear to have been updated in awhile.

#48

  • Bank:  Rock River Bank, Oregon, IL
  • Buyer:  Harvard State Bank, Harvard, IL
  • Vitals:  At 4/30/09, assets of $77 million and deposits of $75.8 million
  • DIF Damage:  $27.6 million

Since the beginning of 2008, ten banks have failed in Illinois.  Georgia still claims the top spot with 14.

6:20 update: Wow.  Three more bank failure notices just hit my inbox, bringing the total to six for the evening.  And five of them are in Illinois! I thought FDIC might take advantage of the long weekend, but jeez.  Doesn’t Sheila Bair plan on catching any fireworks?

#49

  • Bank:  Elizabeth State Bank, Elizabeth, IL
  • Buyer:  Galena State Bank and Trust, Galena, IL
  • Vitals:  At 4/30/09, assets of $55.5 million and deposits of $50.4 million
  • DIF Damage:  $11.2 million

#50

  • Bank:  First National Bank of Danville, Danville, IL
  • Buyer:  First Financial Bank, National Association, Terre Haute, IN
  • Vitals:  At 4/30/09, assets of $166 million and deposits of $147 million
  • DIF Damage:  $24 million

Illinois now up to 12!

#51

  • Bank:  Millennium State Bank of Texas, Dallas, TX
  • Buyer:  State Bank of Texas, Irving, TX
  • Vitals:  At 6/30/09, assets of $118 million and deposits of $115 million
  • DIF Damage:  $47 million

#52

  • Bank:  Founders Bank, Worth, IL
  • Buyer:  The Private Bank and Trust Co., Chicago, IL
  • Vitals:  At 6/30/09, assets of $962.5 million and deposits of $848.9 million
  • DIF Damage:  $188.5 million

A big one.  And another in Illinois.  One more to go to catch Georgia!

10 comments

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C’mon Rolfe… falling behind… 3 more already!

Posted by Andrew | Report as abusive

I need time to type!

Posted by Rolfe Winkler | Report as abusive

just messing with you. All very small banks… total assets around $500M.

Posted by Andrew | Report as abusive

7! Another one just dropped in Illionois. WTF

Posted by Kyle | Report as abusive

These bank failures reflect that the underlying cause is the governments destructive policies towards small business. These small banks are failing because the businesses they serve are failing too. Just look at last months employment loss. It is nothing more than big bank consolidation. In a few years there will be only a handfull of big banks left to do business with, that is if you still have a business.

Posted by Sanford | Report as abusive

What’s up with Illinois? Georgia I can see as they were a housing bubble state but Illinois? Who were these small town community banks making loans to? People trying to buy a Senate seat from Blagojevich?

Posted by sangellone | Report as abusive

what economic and housing market green shoots are all lies, this is a multi decades downturn my friend

Posted by ron | Report as abusive

sangellone – I was wondering the same thing about Illinois. Is corruption so entrenched in Chicago/Illinois biz that bankers/brokers were ahead of the curve in taking advantage of the system? Just some wild speculation…

Posted by Adam | Report as abusive

Found the answer to the Illinois Bank thing:

“The rash of Illinois failures are interlinked: All six banks were controlled by one family and followed a similar business model that “created concentrated exposure in each institution,” according to the FDIC.

The agency said that the six failures stemmed from the banks’ investments in collateralized debt obligations and other loan losses.”

http://money.cnn.com/2009/07/02/news/com panies/bank_failure/index.htm

Posted by Adam | Report as abusive

BTW, the six Illinois banks were owned by the same family.

Posted by Lee8 | Report as abusive