#100….and counting (+ charts)

October 23, 2009

Another failure in Georgia. And two in Naples.

#100

  • Failed bank: Partners Bank, Naples FL
  • Acquiring bank: Stonegate Bank, Ft. Lauderdale FL
  • Vitals: as of 9/30, assets of $66 million, deposits of $65m
  • DIF damage: $28.6m

#101

  • Failed bank: American United Bank, Lawrenceville GA
  • Acquiring bank: Ameris Bank, Moultrie GA
  • Vitals: as of 8/11, assets of $111 million, deposits of $102m
  • DIF damage: $44m

#102

  • Failed bank: Hillcrest Bank Florida, Naples FL
  • Acquiring bank: Stonegate Bank, Ft. Lauderdale FL
  • Vitals: as of 10/1, assets of $83 million, deposits of $84m
  • DIF damage: $45m

#103

  • Failed bank: Flagship National Bank, Bradenton FL
  • Acquiring bank: First Federal Bank of Florida, Lake City FL
  • Vitals: as of 8/31, assets of $190 million, deposits of $175m
  • DIF damage: $59m

#104

  • Failed bank: Bank of Elmwood, Racine WI
  • Acquiring bank: Tri City National Bank, Oak Creek WI
  • Vitals: as of 9/30, assets of $327 million, deposits of $273m
  • DIF damage: $101m

#105

  • Failed bank: Riverview Community Bank, Ostego MN
  • Acquiring bank: Central Bank, Stillwater MN
  • Vitals: as of 8/31, assets of $108 million, deposits of $80m
  • DIF damage: $20m

#106

  • Failed bank: First DuPage Bank, Westmont IL
  • Acquiring bank: First Midwest Bank, Itasca IL
  • Vitals: as of 8/31, assets of $279 million, deposits of $254m
  • DIF damage: $59m

This week’s bonus: a promotional video from Sheila….

One problem I have: It’s not fair to compare the number of bank failures during this cycle to the number in past cycles. As a % of GDP, the deposits in failed banks is far higher this time ’round:

(Click chart to enlarge in new window)

deposits-in-failed-banks

Yes, I include Citi, BofA and Wachovia in the failed bank bucket. None of them could have withstood last year’s crisis were it not for bailouts and ultra-easy money.

Also, it’s important to remind folks that the big four banks have grown significantly larger in recent years….

create animated gif

Comments

Rolfe,

The graph on deposits in failed banks is even more interesting when you consider that, in terms of where we are chronologically from the start of the crisis, it is best to compare 2009 to 1930.

Thanks for the post

Posted by eric | Report as abusive
 

sorry, meant to say 2008.

Posted by eric | Report as abusive
 

Can’t help but notice too that, whereas a year or two ago, when one of these picayune Georgia, Florida or what have you based banks failed, the FDIC would simply call in one of the ‘super regionals’ like BBT or SunTrust to clean up the mess. Then came the stress tests and TARP and no longer
was a $100-200 billion dollar bank up to the task of assuming the problems of a $100 million dollar “Bert Lance”
sized banking empire.

Posted by sangellone | Report as abusive
 

The most interesting thing that I see is the ratio of insurance fund loss to total deposits. If the bank is honestly run, & reasonably regulated, the total losses should never be as high as 40% of deposits. Assuming an initial capital ratio of 5% to 10%, that would mean not that half the loans went bad, because you normally recover a significant portion of bad loans, but that a majority of the loans went bad, and that less than half the principal was recovered on average.

Posted by MoFromMelb | Report as abusive
 

Rolfe,

Good graphs; I especially like the comparison to GDP, which normalizes the magnitudes.

Thanks for embedding the video. I loved the part in Ms. Bair’s presentation where she says “…in short, we can not run out of money…” Taken to its logical conclusion, they’ll keep printing until this problem is solved, never mind those who have been fiscally responsible and will now have their savings diluted at the expense of Wall Street’s gains.

Craig

Posted by Craig Burton | Report as abusive
 

Ralph, sorry missed this one. I love the ‘Great Recession’ cap. Next time let’s call it the ‘Great Resuscitation’. I am normally quite positive, but I am not sure how we are going to fight our way out of this one. World Bank aggregate charts will also be scary.

Posted by Casper | Report as abusive
 

…one other thing, I know De Beers Diamonds were under scrutiny for antitrust, is there something similar for Bank Monopolies ?

Posted by Casper | Report as abusive
 

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