Bank Failures Continue to Grow

Back in August I wrote bank failures by the numbers at that time there had been a total of 69 banks fail in the US during 2009. Unfortunately it is time to update those stats a little and provide a little more details on what the FDIC has been up to.

To date the FDIC has taken over 123 failed banking instutions representing approximately $115 billion in deposits. The takeovers typically happen on a Friday evening and the banks are hopefully reopened on Monday as part of whatever bank agreed to purchase the assets of the failed bank. Out of the 123 banks that have failed this year the FDIC board has on had to approve payout of insured deposits for 6 of the failed banks. What this means is the FDIC was able to find other banks willing to take on the deposits from the other 117 failed banks.

There has now been a bank failure in 31 states with some states like Georgia (21), Illinois (19), and California (15) experiencing multiple failures. The following table lists each state and the number failed banks within that state.

State Num Failed
GA 21
IL 19
CA 15
FL 11
MN 6
TX 5
AZ 4
CO 3
MI 3
MO 3
NV 3
OR 3
WA 3
AL 2
KS 2
MD 2
NC 2
NJ 2
UT 2
IA 1
ID 1
IN 1
KY 1
NE 1
NY 1
OH 1
OK 1
PA 1
SD 1
WI 1
WY 1

The total dollar value of deposits, however, doesn’t coorelate 1 to 1 with the number of failed banks. When looking at the total amount of deposits at the failed instiutions California takes the top spot with $26,350,300,000.00 followed by Alabama with $20,546,000,000.00. You can see from the table above that Alabama has only had two total banks fail. Colonial bank, which was taken over on August 14, 2009 had total deposits of approximately $20 billion which were luckily assumed by BB&T. This single failure was almost twice as large as the next biggest bank, in terms of deposits, Guaranty Bank in Austin, TX which had $12 billion in deposits. The following chart shows the states witht the highest dollar value of deposits. Notice Georgia with the most closed banks is only 6th in terms of total deposit dollars.

Top States

Last Friday November 13, 2009 saw the closing of three more banks, what this Friday holds we can’t be sure but I am willing to bet the unfortunate tide of bank closures isn’t going to end anytime soon. Has your bank been shutdown by the FDIC? I would love to hear about it.

You can find the complete list of failed banks including the official FDIC press releases and other details at the FDIC website.

{ 3 comments… read them below or add one }

1 AB November 18, 2009 at 10:28 am

My mom worked for the one bank that closed in Iowa. You are right – The FDIC showed up at 5 pm on a Friday. My mom called the bank president because she didn’t expect them! Well, she knew the bank was in trouble but didn’t realize they were coming *that day*. The bank president said be polite and cooperative. The FDIC brought a state trooper with them and a trooper occupied the bank through the weekend (labor day weekend!) until they reopened on Tuesday morning. They are still working through transitioning everything to the new bank.

When it hit the news that the bank was in trouble a lot of customers freaked out and closed their accounts. But in the end that was unnecessary as they weren’t one of the 6 for which the FDIC had to pay out deposits.

Oh – my mom still has her job! She worked for at a smaller branch and they retained all of the employees! They are still getting everything figured out as far as benefits and salary, though…

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2 Kyle November 18, 2009 at 8:37 pm

Thanks for sharing, glad your mom got to keep her job. If you know the bank is being assumed you should still be able to access your money. The problem is when the FDIC takes over and then they close it down. If they end up mailing your check you could be out your cash for a little while. The way I understand it they keep it super hush hush right up until they actually enter the bank after close on Friday. They try to cut down on the rush on the bank by not having it down during normal operating hours and hopefully back up under the new name on Monday.

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3 AB November 19, 2009 at 10:42 am

Oh, it was absolutely secret until they showed up on that Friday. My mom actually called the bank president’s cell phone to ensure these guys were legit. Employees from the new bank came with the FDIC people and they had to sign some agreement that they wouldn’t reveal where they were going until it was otherwise made public. That bank didn’t reopen until Tuesday morning, but it was labor day weekend so nobody expected the bank to be open on Monday morning anyway!

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