Deposit insurance United States

 

The United States was the first country to establish an official deposit insurance scheme, the Federal Deposit Insurance Corporation, during a Great Depression banking crisis in 1933.

A separate fund, the National Credit Union Share Insurance Fund (NCUSIF) administered by the National Credit Union Administration (NCUA), was created in 1970 to insure deposits at credit unions.

In Massachusetts, the Depositors Insurance Fund (DIF) insures deposits in excess of the FDIC limits at state-chartered savings banks

 

 

History
Inception

During the 1930s, the U.S. and the rest of the world experienced a severe economic contraction that is now called the Great Depression. In the U.S. during the height of the Great Depression, the official unemployment rate was 25% and the stock market had declined 75% since 1929. Bank runs were common because there wasn't insurance on deposits at banks, banks kept only a fraction of deposits in reserve, and customers ran the risk of losing the money that they had deposited if their bank failed.

On June 16, 1933, President Franklin D. Roosevelt signed the Banking Act of 1933. This legislation:

Established the FDIC as a temporary government corporation
Gave the FDIC authority to provide deposit insurance to banks
Gave the FDIC the authority to regulate and supervise state nonmember banks
Funded the FDIC with initial loans of $289 million through the U.S. Treasury and the Federal Reserve
Extended federal oversight to all commercial banks for the first time
Separated commercial and investment banking (Glass–Steagall Act)
Prohibited banks from paying interest on checking accounts
Allowed national banks to branch statewide, if allowed by state law

Historical insurance limits
Bank sign indicating the original insurance limit offered by the FDIC of $2,500 in 1934.1934 - $2,500
1935 - $5,000
1950 - $10,000
1966 - $15,000
1969 - $20,000
1974 - $40,000
1980 - $100,000
2008 - $250,000
The temporary increase in 2008 of the insurance limit to $250,000 was made permanent in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

S&L and bank crisis of the 1980s

Main article: Savings and loan crisis
Federal deposit insurance received its first large-scale test in the late 1980s and early 1990s during the savings and loan crisis (which also affected commercial banks and savings banks).

The brunt of the crisis fell upon a parallel institution, the Federal Savings and Loan Insurance Corporation (FSLIC), created to insure savings and loan institutions (S&Ls, also called thrifts). Due to a confluence of events, much of the S&L industry was insolvent, and many large banks were in trouble as well. The FSLIC became insolvent and merged into the FDIC. Thrifts are now overseen by the Office of Thrift Supervision, an agency that works closely with the FDIC and the Comptroller of the Currency. (Credit unions are insured by the National Credit Union Administration.) The primary legislative responses to the crisis were the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), and Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA).

This crisis cost taxpayers an estimated $150 billion to resolve.

2008-2010 Financial crisis2008As a result of the financial crisis in 2008, twenty-five U.S. banks became insolvent and were taken over by the FDIC. However, during that year, the largest bank failure in terms of dollar value occurred on September 26, 2008 when Washington Mutual experienced a 10-day bank run on its deposits.

2009On July 31, 2009, the FDIC launched its Legacy Loans Program (LLP). This initiative is aimed at helping banks rid their balance sheets of toxic assets so they can raise new capital and increase lending.

On August 14, 2009, Bloomberg reported that more than 150 publicly traded U.S. lenders had nonperforming loans above 5% of their total holdings. This is important because former regulators say that this is the level that can wipe out a bank's equity and threaten its survival. While this ratio doesn't always lead to bank failures if the banks in question have raised additional capital and have properly established reserves for the bad debt, it is an important indicator for future FDIC activity.

On August 21, 2009, the 2nd largest bank, Guaranty Bank, in Texas became insolvent and was taken over by BBVA Compass , the U.S. division of Banco Bilbao Vizcaya Argentaria SA, the second-largest bank in Spain. This is the first foreign company to buy a failed bank during the credit crisis of 2008 and 2009. In, addition, the FDIC agreed to share losses with BBVA on about 11 billion of Guaranty Bank's loans and other assets. This transaction alone cost the FDIC Deposit Insurance Fund $3 Billion.

On August 27, 2009, the FDIC increased the number of troubled banks to 416 in the second quarter. That number compares to 305 just three months earlier. At the end of the third quarter that number jumped to 552.

At the close of 2009, a total of 140 banks had become insolvent. This is the largest number of bank failures in a year since 1992, when 179 institutions failed.

2010On February 23, 2010, FDIC chairman Sheila Bair warned that the number of failures in 2010 could surpass the 140 banks that were seized in 2009. Commercial Real Estate overexposure has now been deemed the most serious threat to banks in 2010.

On April 30, 2010, the FDIC used emergency powers to seize three banks in Puerto Rico at a cost of $5.3 billion.

In 2010, 157 banks with approximately $92 billion in total assets failed.

FundsFormer fundsBetween 1989 and 2006, there were two separate FDIC funds — the Bank Insurance Fund (BIF), and the Savings Association Insurance Fund (SAIF). The latter was established after the savings & loans crisis of the 1980s. The existence of two separate funds for the same purpose led to banks attempting to shift from one fund to another, depending on the benefits each could provide. In the 1990s, SAIF premiums were at one point five times higher than BIF premiums; several banks attempted to qualify for the BIF, with some merging with institutions qualified for the BIF to avoid the higher premiums of the SAIF. This drove up the BIF premiums as well, resulting in a situation where both funds were charging higher premiums than necessary.

Then Chairman of the Federal Reserve Alan Greenspan was a critic of the system, saying that "We are, in effect, attempting to use government to enforce two different prices for the same item – namely, government-mandated deposit insurance. Such price differences only create efforts by market participants to arbitrage the difference." Greenspan proposed "to end this game and merge SAIF and BIF".

Deposit Insurance FundIn February, 2006, President George W. Bush signed into law the Federal Deposit Insurance Reform Act of 2005 ("FDIRA") and a related conforming amendments act. The FDIRA contains technical and conforming changes to implement deposit insurance reform, as well as a number of study and survey requirements. Among the highlights of this law was merging the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) into a new fund, the Deposit Insurance Fund (DIF). This change was made effective March 31, 2006. The FDIC maintains the DIF by assessing depository institutions an insurance premium. The amount each institution is assessed is based both on the balance of insured deposits as well as on the degree of risk the institution poses to the insurance fund.

Bank failures typically represent a cost to the DIF because FDIC, as receiver of the failed institution, must liquidate assets that have declined substantially in value while at the same time making good on the institution's deposit obligations.

A March 2008 memorandum to the FDIC Board of Directors shows a 2007 year-end Deposit Insurance Fund balance of about $52.4 billion, which represented a reserve ratio of 1.22% of its exposure to insured deposits totaling about $4.29 trillion. The 2008 year-end insured deposits were projected to reach about $4.42 trillion with the reserve growing to $55.2 billion, a ratio of 1.25%. As of June 2008, the DIF had a balance of $45.2 billion. However, 9 months later, in March, 2009, the DIF fell to $13 billion. That was the lowest total since September, 1993 and represented a reserve ratio of 0.27% of its exposure to insured deposits totaling about $4.83 trillion. In the second quarter of 2009, the FDIC imposed an emergency fee aimed at raising $5.6 billion to replenish the DIF. However, Saxo Bank Research reported that after Aug 7th further bank failures had reduced the DIF balance to $648.1 million. FDIC-estimated costs of assuming additional failed banks on Aug 14th exceeded that amount. The FDIC announced its intent, on September 29, 2009 to assess the banks in advance for three years of premiums in an effort to avoid DIF insolvency. The FDIC revised its estimated costs of bank failures to about $100 billion over the next four years, an increase of $30 billion from the $70 billion estimate of earlier in 2009. The FDIC board voted to require insured banks to prepay $45 billion in premiums to replenish the fund. News media reported that the prepayment move would be inadequate to assure the financial stability of the FDIC insurance fund. The FDIC elected to request the prepayment so that the banks could recognize the expense over three years, instead of drawing down banks' statutory capital abruptly, at the time of the assessment. The fund is mandated by law to keep a balance equivalent to 1.15 percent of insured deposits. As of June 30, 2008, the insured banks held approximately $7,025 billion in total deposits, though not all of those are insured.

The DIF's reserves are not the only cash resources available to the FDIC: in addition to the $18 billion in the DIF as of June, 2010; the FDIC has $19 billion of cash and U.S. Treasury securities held as of June, 2010 and has the ability to borrow up to $500 billion from the Treasury. The FDIC can also demand special assessments from banks as it did in the second quarter of 2009.

"Full Faith and Credit"In light of apparent systemic risks facing the banking system, the adequacy of FDIC's financial backing has come into question. Beyond the funds in the Deposit Insurance Fund above and the FDIC's power to charge insurance premia, FDIC insurance is additionally assured by the Federal government. According to the FDIC.gov website (as of January 2009), "FDIC deposit insurance is backed by the full faith and credit of the United States government". This means that the resources of the United States government stand behind FDIC-insured depositors." The statutory basis for this claim is less than clear. Congress, in 1987, passed a non-binding "Sense of Congress" to that effect, but there appear to be no laws strictly binding the government to make good on any insurance liabilities unmet by the FDIC.

Insurance requirementsTo receive this benefit, member banks must follow certain liquidity and reserve requirements. Banks are classified in five groups according to their risk-based capital ratio:

Well capitalized: 10% or higher
Adequately capitalized: 8% or higher
Undercapitalized: less than 8%
Significantly undercapitalized: less than 6%
Critically undercapitalized: less than 2%
When a bank becomes undercapitalized the FDIC issues a warning to the bank. When the number drops below 6% the FDIC can change management and force the bank to take other corrective action. When the bank becomes critically undercapitalized the FDIC declares the bank insolvent and can take over management of the bank.

Resolution of insolvent banksThe two most common methods employed by FDIC in cases of insolvency or illiquidity are:

Purchase and Assumption Method (P&A), in which all deposits (liabilities) are assumed by an open bank, which also purchases some or all of the failed bank's loans (assets). Other failed assets are auctioned online, primarily through The Debt Exchange and First Financial Network.
Payout Method, in which insured deposits are paid by the FDIC, which attempts to recover its payments by liquidating the receivership estate of the failed bank. These are straight deposit payoffs and are only executed if the FDIC doesn’t receive a bid for a P&A transaction or for an insured deposit transfer transaction. In a straight deposit payoff, no liabilities are assumed and no assets are purchased by another institution. Also, the FDIC determines the insured amount for each depositor and pays that amount to him or her. In calculating each customer’s total deposit amount, the FDIC includes all the interest accrued up to the date of failure under the contractual terms of the depositor’s account.
Insured productsFDIC deposit insurance covers deposit accounts, which, by the FDIC definition, include:

demand deposit accounts (checking accounts), and negotiable order of withdrawal accounts (NOW accounts, i.e., savings accounts that have check-writing privileges)
savings deposit accounts (savings accounts), and money market deposit accounts (MMDAs, i.e., higher-interest savings accounts subject to check-writing restrictions)
time deposit accounts including certificates of deposit (CDs)
outstanding cashier's checks, interest checks, and other negotiable instruments drawn on the accounts of the bank.
accounts denominated in foreign currencies
Accounts at different banks are insured separately. All branches of a bank are considered to form a single bank. Also, an Internet bank that is part of a brick and mortar bank is not considered to be a separate bank, even if the name differs. Non-US citizens are also covered by FDIC insurance.

The FDIC publishes a guide entitled Your Insured Deposits, which sets forth the general characteristics of FDIC deposit insurance, and addresses common questions asked by bank customers about deposit insurance.

Items not insuredOnly the above types of accounts are insured. Some types of uninsured products, even if purchased through a covered financial institution, are:

Stocks, bonds, mutual funds, and money funds
The Securities Investor Protection Corporation, a separate institution chartered by Congress, provides protection against the loss of many types of such securities in the event of a brokerage failure, but not against losses on the investments.
Further, as of September 19, 2008, the US Treasury is offering an optional insurance program for money market funds, which guarantees the value of the assets.
Exceptions have occurred, such as the FDIC bailout of bondholders of Continental Illinois.
Investments backed by the U.S. government, such as US Treasury securities
The contents of safe deposit boxes.
Even though the word deposit appears in the name, under federal law a safe deposit box is not a deposit account – it is merely a secured storage space rented by an institution to a customer.
Losses due to theft or fraud at the institution.
These situations are often covered by special insurance policies that banking institutions buy from private insurance companies.
Accounting errors.
In these situations, there may be remedies for consumers under state contract law, the Uniform Commercial Code, and some federal regulations, depending on the type of transaction.
Insurance and annuity products, such as life, auto and homeowner's insurance.
See alsoFDIC Enterprise Architecture Framework
FDIC problem bank list
Temporary Liquidity Guarantee Program
National Credit Union Administration
Too Big to Fail policy
Financial crisis of 2007-2010


List of largest U.S. bank failures

 

This is an incomplete list of the largest U.S. bank failures with respect to total assets under management at the time of the bank failure (banks with $1.0 billion or more in assets are listed here). Assets of the banks listed here are figures provided by the Federal Deposit Insurance Corporation.

 

Bank City State Date Assets at time of failure
Washington Mutual Seattle Washington 2008 $307 billion
Continental Illinois National Bank and Trust Chicago Illinois 1984 $40.0 billion
First Republic Bank Dallas Texas 1988 $32.5 billion
IndyMac Pasadena California 2008 $32 billion
American Savings and Loan Stockton California 1988 $30.2 billion
Colonial Bank Montgomery Alabama 2009 $25 billion
Bank of New England Boston Massachusetts 1991 $21.7 billion
MCorp Dallas Texas 1989 $18.5 billion
FBOP Corp banking subsidiaries Oak Park Illinois 2009 $18.4 billion
Gibraltar Savings and Loan Simi Valley California 1989 $15.1 billion
First City National Bank Houston Texas 1988 $13.0 billion
Guaranty Bank Austin Texas 2009 $13.0 billion
Downey Savings and Loan Newport Beach California 2008 $12.8 billion
BankUnited FSB Coral Gables Florida 2009 $12.8 billion
HomeFed Bank San Diego California 1992 $12.2 billion
AmTrust Bank Cleveland Ohio 2009 $12.0 billion
WesternBank Mayaguez Puerto Rico 2010 $11.9 billion
United Commercial Bank San Francisco California 2009 $11.2 billion
Southeast Bank Miami Florida 1991 $11.0 billion
Goldome Buffalo New York 1991 $9.9 billion
California National Bank Los Angeles California 2009 $7.8 billion
Corus Bank Chicago Illinois 2009 $7.0 billion
First Federal Bank of California Santa Monica California 2009 $6.1 billion
R-G Premier Bank of Puerto Rico Hato Rey Puerto Rico 2010 $5.9 billion
Franklin Bank Houston Texas 2008 $5.1 billion
Silverton Bank Atlanta Georgia 2009 $4.1 billion
Imperial Capital Bank La Jolla California 2009 $4.0 billion
PFF Bank & Trust Pomona California 2008 $3.7 billion
La Jolla Bank La Jolla California 2010 $3.6 billion
Frontier Bank Everett Washington 2010 $3.5 billion
Amcore Bank Rockford Illinois 2010 $3.4 billion
First National Bank of Nevada Reno Nevada 2008 $3.4 billion
Riverside National Bank of Florida Fort Pierce Florida 2010 $3.4 billion
Midwest Bank and Trust Company Elmwood Park Illinois 2010 $3.2 billion
Superior Bank Birmingham Alabama 2011 $3.0 billion
TierOne Bank Lincoln Nebraska 2010 $2.8 billion
Irwin Union Bank and Trust Colorado. Columbus Indiana 2009 $2.7 billion
Orion Bank Naples Florida 2009 $2.7 billion
EuroBank San Juan Puerto Rico 2010 $2.6 billion
ANB Financial Bentonville Arkansas 2008 $2.1 billion
First Regional Bank Los Angeles California 2010 $2.1 billion
ShoreBank Chicago Illinois 2010 $2.1 billion
Silver State Bank Henderson Nevada 2008 $2.0 billion
New Frontier Bank Greeley Colorado 2009 $2.0 billion
Georgian Bank Atlanta Georgia 2009 $2.0 billion
Vineyard Bank Rancho Cucamonga California 2009 $1.9 billion
Peoples First Community Bank Panama City Florida 2009 $1.8 billion
County Bank Merced California 2009 $1.7 billion
CenTrust Bank Miami Florida 1990 $1.7 billion
Hillcrest Bank Overland Park Kansas 2010 $1.6 billion
Advanta Bank Corp Draper Utah 2010 $1.6 billion
CF Bancorp Port Huron Michigan 2010 $1.6 billion
Mutual Bank Harvey Illinois 2009 $1.6 billion
Community Bank of Nevada Las Vegas Nevada 2009 $1.5 billion
First Bank of Beverly Hills Calabasas California 2009 $1.5 billion
Temecula Valley Bank Temecula California 2009 $1.5 billion
New South Federal Savings Bank Irondale Alabama 2009 $1.5 billion
Horizon Bank Bellingham Washington 2010 $1.3 billion
United States National Bank San Diego California 1973 $1.3 billion
Premier Bank Jefferson City Missouri 2010 $1.2 billion
Broadway Bank Chicago Illinois 2010 $1.2 billion
Security Bank of Bibb County Macon Georgia 2009 $1.2 billion
Charter Bank Santa Fe New Mexico 2010 $1.2 billion
Alliance Bank Culver City California 2009 $1.1 billion
City Bank Lynnwood Washington 2010 $1.1 billion
Columbia River Bank The Dalles Oregon 2010 $1.1 billion
Community Bank and Trust Cornelia Georgia 2010 $1.1 billion
Integrity Bank Alpharetta Georgia 2008 $1.1 billion
Affinity Bank Ventura California 2009 $1.0 billion
Appalachian Community Bank Ellijay Georgia 2010 $1.0 billion

 

A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. More specifically, a bank usually fails economically when the market value of its assets declines to a value that is less than the market value of its liabilities. As such, the bank is unable to fulfill the demands of all of its depositors on time. Also, a bank may be taken over by the regulating government agency if Shareholders Equity (i.e. capital ratios) are below the regulatory minimum.

The failure of a bank is generally considered to be of more importance than the failure of other types of business firms because of the interconnectedness of banking institutions. It is often feared that the effects of a failure of one bank can quickly spread throughout the economy and possibly result in the failure of other banks, whether or not those banks were solvent at the time. As a result, banking institutions are typically subjected to rigorous regulation, and bank failures are of major public policy concern in countries across the world.

In the United States, deposits in savings and checking accounts are backed by the FDIC. Currently, each account owner is insured up to $250,000 in the event of a bank failure. When a bank fails, in addition to insuring the deposits, the FDIC acts as the receiver of the failed bank, taking control of the bank's assets and deciding how to settle its debts.

No advance notice is given to the public when a bank fails. Under ideal circumstances, a bank failure can occur without customers losing access to their funds at any point. For example, in the 2008 failure of Washington Mutual the FDIC was able to broker a deal in which JP Morgan Chase bought the assets of Washington Mutual for $1.9 billion. Existing customers were immediately turned into JP Morgan Chase customers, without disruption in their ability to use their ATM cards or do banking at branches. Such policies are designed to discourage bank runs that might cause economic damage on a wider scale.
 

List of bank failures in 2010

The following 157 banks have failed in 2010:

Bank City State Date Assets
  ($mil.)
Horizon Bank Bellingham Washington 02010-01-08January 8, 2010 1,300
Town Community Bank & Trust Antioch Illinois 02010-01-15January 15, 2010 70
St. Stephen State Bank St. Stephen Minnesota 02010-01-15January 15, 2010 25
Barnes Banking Company Kaysville Utah 02010-01-15January 15, 2010 828
Premier American Bank Miami Florida 02010-01-22January 22, 2010 351
Bank of Leeton Leeton Missouri 02010-01-22January 22, 2010 20
Charter Bank Sante Fe New Mexico 02010-01-22January 22, 2010 1,200
Evergreen Bank Seattle Washington 02010-01-22January 22, 2010 489
Columbia River Bank The Dalles Oregon 02010-01-22January 22, 2010 1,100
First National Bank of Georgia Carrollton Georgia 02010-01-29January 29, 2010 833
Florida Community Bank Immokalee Florida 02010-01-29January 29, 2010 876
Marshall Bank, N.A. Hallock Minnesota 02010-01-29January 29, 2010 60
Community Bank and Trust Cornelia Georgia 02010-01-29January 29, 2010 1,210
First Regional Bank Los Angeles California 02010-01-29January 29, 2010 2,180
American Marine Bank Bainbridge Island Washington 02010-01-29January 29, 2010 373
1st American State Bank of Minnesota Hancock Minnesota 02010-02-05February 5, 2010 18
La Jolla Bank La Jolla California 02010-02-19February 19, 2010 3,600
George Washington Savings Bank Orland Park Illinois 02010-02-19February 19, 2010 413
The La Coste National Bank La Coste Texas 02010-02-19February 19, 2010 54
Marco Community Bank Marco Island Florida 02010-02-19February 19, 2010 120
Carson River Community Bank Carson City Nevada 02010-02-26February 26, 2010 51
Rainier Pacific Bank Tacoma Washington 02010-02-26February 26, 2010 718
Centennial Bank Ogden Utah 02010-03-05March 5, 2010 215
Waterfield Bank Germantown Maryland 02010-03-05March 5, 2010 156
Bank of Illinois Normal Illinois 02010-03-05March 5, 2010 212
Sun American Bank Boca Raton Florida 02010-03-05March 5, 2010 536
LibertyPointe Bank New York New York 02010-03-12March 12, 2010 210
The Park Avenue Bank New York New York 02010-03-12March 12, 2010 520
Statewide Bank Covington Louisiana 02010-03-12March 12, 2010 243
Old Southern Bank Orlando Florida 02010-03-12March 12, 2010 316
American National Bank Parma Ohio 02010-03-19March 19, 2010 70
Advanta Bank Corp Draper Utah 02010-03-19March 19, 2010 1,600
Century Security Bank Duluth Georgia 02010-03-19March 19, 2010 97
Bank of Hiawassee Hiawassee Georgia 02010-03-19March 19, 2010 378
Appalachian Community Bank Ellijay Georgia 02010-03-19March 19, 2010 1,010
First Lowndes Bank Luverne Alabama 02010-03-19March 19, 2010 137
State Bank of Aurora Aurora Minnesota 02010-03-19March 19, 2010 28
Desert Hills Bank Phoenix Arizona 02010-03-26March 26, 2010 497
Unity National Bank Cartersville Georgia 02010-03-26March 26, 2010 292
Key West Bank Key West Florida 02010-03-26March 26, 2010 88
McIntosh Commercial Bank Carrollton Georgia 02010-03-26March 26, 2010 363
Beach First National Bank Myrtle Beach South Carolina 02010-04-09April 9, 2010 585
City Bank Lynnwood Washington 02010-04-16April 16, 2010 1,130
Tamalpais Bank San Rafael California 02010-04-16April 16, 2010 629
Innovative Bank Oakland California 02010-04-16April 16, 2010 269
Butler Bank Lowell Massachusetts 02010-04-16April 16, 2010 268
Riverside National Bank of Florida Fort Pierce Florida 02010-04-16April 16, 2010 3,420
AmericanFirst Bank Clermont Florida 02010-04-16April 16, 2010 91
First Federal Bank of North Florida Palatka Florida 02010-04-16April 16, 2010 393
Lakeside Community Bank Sterling Heights Michigan 02010-04-16April 16, 2010 53
Amcore Bank Rockford Illinois 02010-04-23April 23, 2010 3,400
Broadway Bank Chicago Illinois 02010-04-23April 23, 2010 1,200
Citizens Bank and Trust Company of Chicago Chicago Illinois 02010-04-23April 23, 2010 77
Lincoln Park Saving Bank Chicago Illinois 02010-04-23April 23, 2010 200
New Century Bank Chicago Illinois 02010-04-23April 23, 2010 486
Peotone Bank and Trust Company Peotone Illinois 02010-04-23April 23, 2010 130
Wheatland Bank Naperville Illinois 02010-04-23April 23, 2010 437
BC National Banks Butler Missouri 02010-04-30April 30, 2010 67
CF Bancorp Port Huron Michigan 02010-04-30April 30, 2010 1,650
Champion Bank Creve Coeur Missouri 02010-04-30April 30, 2010 187
Eurobank San Juan Puerto Rico 02010-04-30April 30, 2010 2,560
Frontier Bank Everett Washington 02010-04-30April 30, 2010 3,500
R-G Premier Bank of Puerto Rico Hato Rey Puerto Rico 02010-04-30April 30, 2010 5,920
Westernbank Puerto Rico Mayaguez Puerto Rico 02010-04-30April 30, 2010 11,940
1st Pacific Bank of California San Diego California 02010-05-07May 7, 2010 336
Towne Bank of Arizona Mesa Arizona 02010-05-07May 7, 2010 120
Access Bank Champlin Minnesota 02010-05-07May 7, 2010 32
The Bank of Bonifay Bonifay Florida 02010-05-07May 7, 2010 243
Midwest Bank and Trust Company Elmwood Park Illinois 02010-05-14May 14, 2010 3,170
New Liberty Bank Plymouth Michigan 02010-05-14May 14, 2010 109
Satilla Community Bank St. Marys Georgia 02010-05-14May 14, 2010 136
Southwest Community Bank Springfield Missouri 02010-05-14May 14, 2010 97
Pinehurst Bank St. Paul Minnesota 02010-05-21May 21, 2010 61
Bank of Florida-Southeast Fort Lauderdale Florida 02010-05-28May 28, 2010 595
Bank of Florida-Southwest Naples Florida 02010-05-28May 28, 2010 641
Bank of Florida-Tampa Bay Tampa Florida 02010-05-28May 28, 2010 245
Sun West Bank Las Vegas Nevada 02010-05-28May 28, 2010 361
Granite Community Bank Granite Bay California 02010-05-28May 28, 2010 103
TierOne Bank Lincoln Nebraska 02010-06-04June 4, 2010 2,800
First National Bank Rosedale Mississippi 02010-06-04June 4, 2010 60
Arcola Homestead Savings Bank Arcola Illinois 02010-06-04June 4, 2010 17
Washington First International Bank Seattle Washington 02010-06-11June 11, 2010 521
Nevada Security Bank Reno Nevada 02010-06-18June 18, 2010 480
Peninsula Bank Englewood Florida 02010-06-25June 25, 2010 644
First National Bank Savannah Georgia 02010-06-25June 25, 2010 253
High Desert State Bank Albuquerque New Mexico 02010-06-25June 25, 2010 81
Bay National Bank Baltimore Maryland 02010-07-09July 9, 2010 282
Ideal Federal Savings Bank Baltimore Maryland 02010-07-09July 9, 2010 6
USA Bank Port Chester New York 02010-07-09July 9, 2010 190
Home National Bank Blackwell Oklahoma 02010-07-09July 9, 2010 561
Woodlands Bank Bluffton South Carolina 02010-07-16July 16, 2010 376
First National Bank of the South Spartanburg South Carolina 02010-07-16July 16, 2010 682
Mainstreet Savings Bank Hastings Michigan 02010-07-16July 16, 2010 97
Metro Bank of Dade County Miami Florida 02010-07-16July 16, 2010 442
Turnberry Bank Aventura Florida 02010-07-16July 16, 2010 264
Olde Cypress Community Bank Clewiston Florida 02010-07-16July 16, 2010 169
Community Security Bank New Prague Minnesota 02010-07-23July 23, 2010 108
Crescent Bank and Trust Co Jasper Georgia 02010-07-23July 23, 2010 1,000
Sterling Bank Lantana Florida 02010-07-23July 23, 2010 408
Williamsburg First National Bank Kingstree South Carolina 02010-07-23July 23, 2010 139
Thunder Bank Sylvan Grove Kansas 02010-07-23July 23, 2010 33
SouthwestUSA Bank Las Vegas Nevada 02010-07-23July 23, 2010 214
Home Valley Bank Cave Junction Oregon 02010-07-23July 23, 2010 252
Bayside Savings Bank Port Saint Joe Florida 02010-07-30July 30, 2010 66
Coastal Community Bank Panama City Florida 02010-07-30July 30, 2010 373
NorthWest Bank and Trust Acworth Georgia 02010-07-30July 30, 2010 168
The Cowlitz Bank Longview Washington 02010-07-30July 30, 2010 529
Liberty Bank Eugene Oregon 02010-07-30July 30, 2010 768
Ravenswood Bank Chicago Illinois 02010-08-06August 6, 2010 265
Palos Bank and Trust Palos Heights Illinois 02010-08-13August 13, 2010 493
ShoreBank Chicago Illinois 02010-08-20August 20, 2010 2,160
Community National Bank Bartow Florida 02010-08-20August 20, 2010 68
Independent National Bank Ocala Florida 02010-08-20August 20, 2010 156
Imperial Savings & Loan Martinsville Virginia 02010-08-20August 20, 2010 9
Butte Community Bank Chico California 02010-08-20August 20, 2010 499
Pacific State Bank Stockton California 02010-08-20August 20, 2010 312
Los Padres Bank Solvang California 02010-08-20August 20, 2010 870
Sonoma Valley Bank Sonoma California 02010-08-20August 20, 2010 337
Horizon Bank Bradenton Florida 02010-09-10September 10, 2010 188
Bank of Ellijay Ellijay Georgia 02010-09-17September 17, 2010 169
First Commerce Community Bank Douglasville Georgia 02010-09-17September 17, 2010 248
Peoples Bank Winder Georgia 02010-09-17September 17, 2010 447
ISN Bank Cherry Hill New Jersey 02010-09-17September 17, 2010 82
Bramble Savings Bank Milford Ohio 02010-09-17September 17, 2010 48
Maritime Savings Bank West Allis Wisconsin 02010-09-17September 17, 2010 351
Haven Trust Bank Florida Ponte Vedra Beach Florida 02010-09-24September 24, 2010 149
North County Bank Arlington Washington 02010-09-24September 24, 2010 289
Wakulla Bank Crawfordville Florida 02010-10-01October 1, 2010 424
Shoreline Bank Shoreline Washington 02010-10-01October 1, 2010 104
Security Savings Bank, FSB Olathe Kansas 02010-10-15October 15, 2010 508
WestBridge Bank and Trust Company Chesterfield Missouri 02010-10-15October 15, 2010 92
Premier Bank Jefferson City Missouri 02010-10-15October 15, 2010 1,200
Hillcrest Bank Overland Park Kansas 02010-10-22October 22, 2010 1,600
First Bank of Jacksonville Jacksonville Florida 02010-10-22October 22, 2010 81
Progress Bank of Florida Tampa Florida 02010-10-22October 22, 2010 111
First National Bank of Barnesville Barnesville Georgia 02010-10-22October 22, 2010 131
Gordon Bank Gordon Georgia 02010-10-22October 22, 2010 29
First Suburban National Bank Maywood Illinois 02010-10-22October 22, 2010 149
First Arizona Savings Scottsdale Arizona 02010-10-22October 22, 2010 272
K Bank Randallstown Maryland 02010-11-05November 5, 2010 538
Western Commercial Bank Woodland Hills California 02010-11-05November 5, 2010 99
First Vietnamese American Bank Westminster California 02010-11-05November 5, 2010 48
Pierce Commercial Bank Tacoma Washington 02010-11-05November 5, 2010 221
Tifton Banking Company Tifton Georgia 02010-11-12November 12, 2010 144
Darby Bank & Trust Vidalia Georgia 02010-11-12November 12, 2010 655
Copper Star Bank Scottsdale Arizona 02010-11-12November 12, 2010 204
Gulf State Community Bank Carrabelle Florida 02010-11-19November 19, 2010 112
Allegiance Bank of North America Bala Cynwyd Pennsylvania 02010-11-19November 19, 2010 106
First Banking Center Burlington Wisconsin 02010-11-19November 19, 2010 821
Paramount Bank Farmington Hills Michigan 02010-12-10December 10, 2010 253
Earthstar Bank Southampton Pennsylvania 02010-12-10December 10, 2010 113
Chestatee State Bank Dawsonville Georgia 02010-12-17December 17, 2010 244
First Southern Bank Batesville Arkansas 02010-12-17December 17, 2010 156
Community National Bank Lino Lakes Minnesota 02010-12-17December 17, 2010 29
United Americas Bank Atlanta Georgia 02010-12-17December 17, 2010 194
Appalachian Community Bank McCaysville Georgia 02010-12-17December 17, 2010 68
The Bank of Miami Coral Gables Florida 02010-12-17December 17, 2010 448

Total Assets ($mil.) from bank failures in 2010: $95,975.


 

List of bank failures in 2011

The following 40 banks have failed in 2011:

Bank City State Date Assets
  ($mil.)
First Commercial Bank of Florida Orlando Florida 02011-01-07January 7, 2011 599
Legacy Bank Scottsdale Arizona 02011-01-07January 7, 2011 151
Oglethorpe Bank Brunswick Georgia 02011-01-14January 14, 2011 231
Enterprise Banking Company McDonough Georgia 02011-01-21January 21, 2011 96
CommunitySouth Bank and Trust Easley South Carolina 02011-01-21January 21, 2011 402
Bank of Asheville Asheville North Carolina 02011-01-21January 21, 2011 188
United Western Bank Denver Colorado 02011-01-21January 21, 2011 1,650
FirsTier Bank Louisville Colorado 02011-01-28January 28, 2011 782
First Community Bank Taos New Mexico 02011-01-28January 28, 2011 2,300
First State Bank Camargo Oklahoma 02011-01-28January 28, 2011 44
Evergreen State Bank Stoughton Wisconsin 02011-01-28January 28, 2011 247
American Trust Bank Roswell Georgia 02011-02-04February 4, 2011 238
North Georgia Bank Watkinsville Georgia 02011-02-04February 4, 2011 153
Community First Bank Chicago Illinois 02011-02-04February 4, 2011 51
Peoples State Bank Hamtramck Michigan 02011-02-11February 11, 2011 391
Canyon National Bank Palm Springs California 02011-02-11February 11, 2011 211
Sunshine State Community Bank Port Orange Florida 02011-02-11February 11, 2011 126
Badger State Bank Cassville Wisconsin 02011-02-11February 11, 2011 84
Habersham Bank Clarkesville Georgia 02011-02-18February 18, 2011 387
Citizens Bank of Effingham Springfield Georgia 02011-02-18February 18, 2011 214
Charter Oak Bank Napa California 02011-02-18February 18, 2011 121
San Luis Trust Bank, FSB San Luis Obispo California 02011-02-18February 18, 2011 333
Valley Community Bank St. Charles Illinois 02011-02-25February 25, 2011 123
First National Bank of Davis Davis Oklahoma 02011-03-11March 11, 2011 90
Legacy Bank Milwaukee Wisconsin 02011-03-11March 11, 2011 190
Bank of Commerce Wood Dale Illinois 02011-03-25March 25, 2011 163
Western Springs National Bank and Trust Western Springs Illinois 02011-04-11April 11, 2011 186
Nevada Commerce Bank Las Vegas Nevada 02011-04-11April 11, 2011 144
Bartow County Bank Cartersville Georgia 02011-04-15April 15, 2011 330
New Horizons Bank East Ellijay Georgia 02011-04-15April 15, 2011 110
Nexity Bank Birmingham Alabama 02011-04-15April 15, 2011 793
Superior Bank Birmingham Alabama 02011-04-15April 15, 2011 3,000
Rosemount National Bank Rosemount Minnesota 02011-04-15April 15, 2011 37
Heritage Banking Group Carthage Mississippi 02011-04-15April 15, 2011 224
Community Central Bank Mount Clemens Michigan 02011-04-29April 29, 2011 476
Park Avenue Bank Valdosta Georgia 02011-04-29April 29, 2011 953
First Choice Community Bank Dallas Georgia 02011-04-29April 29, 2011 309
Cortez Community Bank Brooksville Florida 02011-04-29April 29, 2011 71
First National Bank of Central Florida Winter Park Florida 02011-04-29April 29, 2011 352
Coastal Bank Cocoa Beach Florida 02011-05-11May 11, 2011 129


2008–2010 bank failures in the United States
List of acquired or bankrupt United States banks in the late 2000s financial crisis
Canada Deposit Insurance Corporation

 

Related:
FDIC Federal Deposit Insurance Corporation

Deposit insurance in United States

Bank regulation in the United States
USA PATRIOT Act

 

 

 

 


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