U.S. bank failures in 2009

April 20, 2009

As the U.S. government prepares to reveal the results of stress tests to asses the ability of the nation’s largest 19 banks to cope with worse-than-expected financial conditions, worries continue about the sustainability of recent better-than-expected results from banks.

Bank of America reported a big increase in troubled loans, and shares of Citigroup tumbled after analysts at Goldman Sachs said credit losses at the bank continued to grow at a rapid rate.

Regulators closed banks on Friday in Missouri and Nevada, bringing the total of U.S. bank failures this year to 25 and matching the number that failed throughout all of 2008, as the struggling economy and falling home prices take their toll on financial institutions.

The following is a list of U.S. bank failures so far this year, according to the Federal Deposit Insurance Corp.

Details about each bank closure are posted at the FDIC website.

U.S. BANK FAILURES IN 2009*
(assets, deposits in millions of dollars)

Bank State Assets Deposits FDIC Cost Closing Date
Nat’l Bank of Comm. Ill. 430.9 402.1 97.1 1/16/2009
Bank of Clark County Wash. 446.5 366.5 145 ** 1/16/2009
1st Centennial Bank Calif. 803.3 676.9 227 1/23/2009
MagnetBank Utah 292.9 282.8 119.4 1/30/2009
Suburban Federal Maryland 360 302 126 1/30/2009
Ocala Nat’l Bank Fla 223.5 205.2 99.6 1/30/2009
FirstBank Financial Georgia 337 279 111 2/6/2009
Alliance Bank Calif 1140 9551 206 2/6/2009
County Bank Calif. 1700 1300 135 2/6/2009
Sherman County Bank Neb. 129.8 85.1 28 2/13/2009
Riverside Bank Fla. 539 424 201.5 2/13/2009
Corn Belt Bank Ill. 271.8 234.4 100 2/13/2009
Pinnacle Bank Oregon 73 64 12.1 2/13/2009
Silver Falls Bank Oregon 131.4 116.3 50 2/20/2009
Security Savings Bank Nevada 238.3 175.2 59.1 2/27/2009
Heritage Community Bank Ill. 232.9 218.6 41.6 2/27/2009
Freedom Bank Georgia 173 161 36.2 3/6/2009
FirstCity Bank Georgia 297 278 100 3/20/2009
TeamBank N.A. Kansas 669.8 492.8 98 3/20/2009
Colorado Natl Bank Colo. 123.5 82.7 9 3/20/2009
Omni National Bank Georgia 956 796.8 290 3/27/2009
Cape Fear Bank N.C. 492 403 131 4/10/2009
New Frontier Bank Colo. 2000 1500 670 4/10/2009
Great Basin Bank Nevada 270.9 221.4 42 4/17/2009
American Sterling Mo. 181 171.9 42 4/17/2009

* Table does not include two corporate credit unions that were placed into conservatorship on March 20. The U.S. Central Federal Credit Union in Kansas and the Western Corporate Federal Credit Union in California, which provide products to the overall credit union system, are insured by the National Credit Union Administration.

** FDIC estimated the cost to its insurance fund at between $120 million and $145 million

4 comments

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2 more banks failed this week.

50 banks failed since 2008, 25 each in 2008 and 2009 till now.

Friday means FDIC is in action on some bank.

Last week also FDIC closed 2 banks.

“American Sterling Bank,Sugar Creek, MO” and “Great Basin Bank of Nevada, Elko, NV” were closed on Friday making the count to 25 for this year and 50 since start of 2008 for the failed banks in US.

# 25th bank to fail this year
# 50th bank failed since 2008
# 5th bank in Nevada since 2008 and 2nd this year

Check the list of all the failed banks at :
http://portalseven.com/Failed-Banks-2009

And on google map see where the banks are failing at :
http://www.portalseven.com/finance/Faile d_Banks_Map_2009.jsp

Also layoff tracker at :
http://www.portalseven.com/finance/Finan ceHome.jsp

Do check it.

Would someone please post QUANTITATIVE comparative information? For example, 50 failed banks out of 5,000 rates is no big deal, but 50 out of 200 could be problematic. Do the 50 represent 50% of all asset wealth in banking, or .00000001%? Was each bank bought up, or boarded up? In comparison how many banks went under in the prior 5 year period? The continuous stream of pseudo-fact is like saying the stock market plunged today, but in fact only lost .00000000002% of its aggregate value. The public really is fed up of these meaningless numbers hacked up by the media. Tell us what quantitatively is happening, with real comparisons, and forget the phony superlatives.

Posted by JV Falcon | Report as abusive

Banks will continue to fail until loan standards are changed. 1) People must be personally liable for mortgage default 2) People must prove income with IRS filed documentation when making an application 3)People who obtained housing without the means to support the mortgage should be thrown out, and people with the ability to support a mortgage should be allowed to buy — at the true marketplace value, which is what we are now starting to see. Eventually the loans will upgrade significantly in value, and the banking system will stabilize. Unfortunately no politician has the guts to claim responsibility for low mortgage application standards, and no politician has the guts to demand new standards. So, banks will continue to fail, and the country will soon dig itself a deficit hole too deep to get out of.

Posted by AK Adams | Report as abusive

I found the number of banks failed in the past :

2000 : 2
2001 : 4
2002 : 11
2003 : 3
2004 : 4
2005 : 0
2006 : 0
2007 : 3
2008 : 25
2009 : 25

Posted by BankWatcher | Report as abusive