Home / Uncategorized / Almost 99 red balloons (banks bust) [UPDATE]

Almost 99 red balloons (banks bust) [UPDATE]

Just noticed that the Federal Deposit Insurance Corporation (FDIC) closed down their 93rd and 94th banks in the USA this weekend.  The latest two to succumb are Irwin Union Bank and Irwin Union Bank and Trust Company after the parent firm, Irwin Financial, could not meet the FDIC's requirements to increase their capital.

Who will be the 99th we wonder?  According to the unofficial bank problem list and comments covered in Calculated Risk (thanks to surferdude0606), there's quite  a few more to come:

There were large changes to Unofficial Problem Bank List as the OCC
released some of its newly issued actions for late July and early
August.

The list increased by a net of 12 institutions to 436
from 424 last week. Assets increased by $7.4 billion to $294 billion.
There were five removals with assets of $8.5 including three failures
— Corus Bank, N.A. ($7 billion), Venture Bank ($991 million), and
Brickwell Community Bank ($72.5 million); and two action terminations
(First National Bank of Colorado City and Cumberland Valley National
Bank).

Interestingly, last week Hometown National Bank,
Longview, WA was removed as the OCC terminated a Formal Agreement only
for them to be added back to this week’s list as the OCC subsequently
placed Hometown under a Cease & Desist Order.

Of the 17
additions this week are several subsidiary banks of the privately
controlled bank holding company FBOB Corporation based in Chicago, IL.
These include the Park National Bank, Chicago, IL ($4.8 billion), San
Diego National Bank, San Diego, CA ($3.4 billion), and Pacific National
Bank, San Francisco, CA ($2.1 billion). The Federal Reserve issued a Written Agreement
against FBOB Corporation on Sept 14, 2009. FBOB Corporation has assets
of $18.3 billion and controls nine institutions supervised by either
the OCC or FDIC with five subject to a formal enforcement action.

Other
sizable additions to the list this week include the $1.2 billion asset
Metrobank, National Association, Houston, TX, and the $1.1 billion
asset Atlantic Southern Bank, Macon, GA.

Can the FDIC afford many more?

The two latest bank failures are likely to cost the FDIC a further $850 million and their bank failure fund has already dropped from $45 billion at the start of this year to only $10.4 billion today.

Rumours are rife that the FDIC will need to get further loans from the government, although
the regulator claims it has $42 billion in reserves to cover any further failures.

What happens if we get to 99 red balloons?   Does the 100th burst the fund and reserves start flowing too?  And what happens if you get to 200 balloons?

UPDATE 22nd December 2009

140 First Federal Bank of California, F.S.B., December 18, 2009
139 Imperial Capital Bank, December 18, 2009
138 Independent Bankers' Bank, December 18, 2009
137 New South Federal Savings Bank, December 18, 2009
136 Citizens State Bank, December 18, 2009
135 Peoples First Community Bank, December 18, 2009
134 RockBridge Commercial Bank, December 18, 2009

UPDATE, 16th December 2009

133 SolutionsBank , December 11, 2009
132 Valley Capital Bank, N.A. , December 11, 2009
131 Republic Federal Bank, N.A. , December 11, 2009
130 Greater Atlantic Bank , December 4, 2009
129 Benchmark Bank , December 4, 2009
128 AmTrust Bank , December 4, 2009
127 The Tattnall Bank , December 4, 2009
126 First Security National Bank , December 4, 2009
125 The Buckhead Community Bank , December 4, 2009
124 Commerce Bank of Southwest Florida , November 20, 2009
123 Pacific Coast National Bank , November 13, 2009
122 Orion Bank , November 13, 2009
121 Century Bank, F.S.B. , November 13, 2009
120 United Commercial Bank , November 6, 2009
119 Gateway Bank of St. Louis , November 6, 2009
118 Prosperan Bank , November 6, 2009
117 Home Federal Savings Bank , November 6, 2009
116 United Security Bank , November 6, 2009
115 North Houston Bank , October 30, 2009
114 Madisonville State Bank , October 30, 2009
113 Citizens National Bank , October 30, 2009
112 Park National Bank , October 30, 2009
111 Pacific National Bank , October 30, 2009
110 California National Bank , October 30, 2009
109 San Diego National Bank , October 30, 2009
108 Community Bank of Lemont , October 30, 2009
107 Bank USA, N.A. , October 30, 2009
106 First DuPage Bank , October 23, 2009
105 Riverview Community Bank , October 23, 2009
104 Bank of Elmwood , October 23, 2009
103 Flagship National Bank , October 23, 2009
102 Hillcrest Bank Florida , October 23, 2009
101 American United Bank , October 23, 2009
100 Partners Bank , October 23, 2009

UPDATE #3

99th Bank: San Joaquin Bank, 16th October 2009

UPDATE #2

96/97/98

Three regional banks were closed by regulators on 2nd October, bringing the 2009 tally to 98. 
Warren
Bank,Michigan
Jennings State Bank,
Minnesota
Southern Colorado National Bank, Colorado

UPDATE #1
95th Bank: Georgian Bank, 25th September 2009

  1. September 18 2009, Irwin Union Bank, F.S.B., Louisville, KY
  2. September 18 2009, Irwin Union Bank and Trust Company, Columbus IN
  3. September 11 2009, Venture Bank, Lacey WA
  4. September 11 2009, Brickwell Community Bank, Woodbury MN
  5. September 11 2009, Corus Bank, N.A., Chicago IL
  6. September 4 2009, First State Bank, Flagstaff AZ
  7. September 4 2009, Platinum Community Bank, Rolling Meadows IL
  8. September 4 2009, Vantus Bank, Sioux City IA
  9. September 4 2009, InBank, Oak Forest IL
  10. September 4 2009, First Bank of Kansas City, Kansas City MO
  11. August 28 2009, Affinity Bank, Ventura CA
  12. August 28 2009, Mainstreet Bank, Forest Lake MN
  13. August 28 2009, Bradford Bank, Baltimore MD
  14. August 21 2009 , Guaranty Bank, Austin TRANSACTION
  15. August 21 2009, CapitalSouth Bank, Birmingham AL
  16. August 21 2009, First Coweta Bank, Newnan GA
  17. August 21 2009, ebank, Atlanta GA
  18. August 14 2009, Community Bank of Nevada, Las Vegas NV
  19. August 14 2009, Community Bank of Arizona, Phoenix AZ
  20. August 14 2009, Union Bank, National Association, Gilbert AZ
  21. August 14 2009, Colonial Bank, Montgomery AL
  22. August 14 2009, Dwelling House Savings and Loan Association, Pittsburgh PA
  23. August 7 2009, Community First Bank, Prineville OR
  24. August 7 2009, Community National Bank of Sarasota County, Venice FL
  25. August 7 2009, First State Bank, Sarasota FL
  26. July 31 2009, Mutual Bank, Harvey IL
  27. July 31 2009, First BankAmericano, Elizabeth NJ
  28. July 31 2009, Peoples Community Bank West Chester OH
  29. July 31 2009, Integrity Bank Jupiter FL
  30. July 31 2009, First State Bank of Altus Altus OK
  31. July 24 2009, Security Bank of Jones County Gray GA
  32. July 24 2009, Security Bank of Houston County Perry GA
  33. July 24 2009, Security Bank of Bibb County Macon GA
  34. July 24 2009, Security Bank of North Metro Woodstock GA
  35. July 24 2009, Security Bank of North Fulton Alpharetta GA
  36. July 24 2009, Security Bank of Gwinnett County Suwanee GA
  37. July 24 2009, Waterford Village Bank Williamsville NY
  38. July 17 2009, Temecula Valley Bank Temecula CA
  39. July 17 2009, Vineyard Bank Rancho Cucamonga CA
  40. July 17 2009, BankFirst Sioux Falls SD
  41. July 17 2009, First Piedmont Bank Winder GA
  42. July 10 2009, Bank of Wyoming Thermopolis WY
  43. July 2 2009, Founders Bank Worth IL
  44. July 2 2009, Millennium State Bank of Texas Dallas
  45. July 2 2009, First National Bank of Danville Danville IL
  46. July 2 2009, Elizabeth State Bank Elizabeth IL
  47. July 2 2009, Rock River Bank Oregon IL
  48. July 2 2009, First State Bank of Winchester Winchester IL
  49. July 2 2009, John Warner Bank Clinton IL
  50. June 26 2009, Mirae Bank Los Angeles CA
  51. June 26 2009, MetroPacific Bank Irvine CA
  52. June 26 2009, Horizon Bank Pine City MN
  53. June 26 2009, Neighborhood Community Bank Newnan GA
  54. June 26 2009, Community Bank of West Georgia Villa Rica GA
  55. June 19 2009, First National Bank of Anthony Anthony KS 
  56. June 19 2009, Cooperative Bank Wilmington NC 
  57. June 19 2009, Southern Community Bank Fayetteville GA
  58. June 5 2009, Bank of Lincolnwood Lincolnwood IL
  59. May 22 2009, Citizens National Bank Macomb IL
  60. May 22 2009, Strategic Capital Bank Champaign IL
  61. May 21 2009, BankUnited, FSB Coral Gables FL
  62. May 8 2009, Westsound Bank Bremerton WA
  63. May 1 2009, America West Bank Layton UT
  64. May 1 2009, Citizens Community Bank Ridgewood NJ
  65. May 2 2009, Silverton Bank, NA Atlanta GA
  66. April 24 2009, First Bank of Idaho Ketchum ID 
  67. April 24 2009, First Bank of Beverly Hills Calabasas CA
  68. April 24 2009, Michigan Heritage Bank Farmington Hills MI
  69. April 24 2009, American Southern Bank Kennesaw GA
  70. April 17 2009, Great Basin Bank of Nevada Elko NV 
  71. April 17 2009, American Sterling Bank Sugar Creek MO
  72. April 10 2009, New Frontier Bank Greeley CO 
  73. April 10 2009, Cape Fear Bank Wilmington NC
  74. March 27 2009, Omni National Bank Atlanta GA 
  75. March 27 2009, TeamBank, NA Paola KS
  76. March 20 2009, Colorado National Bank Colorado Springs CO 
  77. March 20 2009, FirstCity Bank Stockbridge GA
  78. March 6 2009, Freedom Bank of Georgia Commerce GA
  79. February 27 2009, Security Savings Bank Henderson NV
  80. February 27 2009, Heritage Community Bank Glenwood IL
  81. February 20 2009, Silver Falls Bank Silverton OR
  82. February 13 2009, Pinnacle Bank of Oregon Beaverton OR
  83. February 13 2009, Corn Belt Bank & Trust Co. Pittsfield IL
  84. February 13 2009, Riverside Bank of the Gulf Coast Cape Coral FL 
  85. February 13 2009, Sherman County Bank Loup City NE
  86. February 6 2009, County Bank Merced CA 
  87. February 6 2009, Alliance Bank Culver City CA
  88. February 6 2009, FirstBank Financial Services McDonough GA
  89. January 30 2009, Ocala National Bank Ocala FL 
  90. January 30 2009, Suburban FSB Crofton MD
  91. January 30 2009, MagnetBank Salt Lake City UT
  92. January 23 2009, 1st Centennial Bank Redlands CA
  93. January 16 2009, Bank of Clark County Vancouver WA 
  94. January 16 2009, National Bank of Commerce Berkeley IL

*

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About Chris M Skinner

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here…

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