bank failure friday

Bank Failure Friday - 3 more closures, tally for 2010 to 86

Ah, what would be a weekend start without a few more bank failures. This week's closures, along with their costs to the FDIC deposit insurance fund are:

  • High Desert State Bank, Albuquerque, New Mexico $20.9 million
  • First National Bank Savannah, Georgia - $68.9 million
  • Peninsula Bank, Englewood, Florida - $194.8 million

Last year's tally was 140. This years total bank failures are expected to top 2009.

Bank Failure Friday - 5 more, 3 in Florida

Another Friday, another announcement of five more bank closings by the FDIC. This week's winners are:

  1. Bank of Florida - Southeast
  2. Bank of Florida - Southwest
  3. Bank of Florida – Tampa Bay
  4. Sun West Bank - Las Vegas, NV
  5. Granite Community Bank - Granite Bay, CA

Cost to the FDIC: 3 Florida banks $203 million, California bank, $17.3 million and the Las Vegas bank, $96.7 million.

Bank Failure Friday - just a small one

Bank Failure Friday has just one reporting this week.

Pinehurt Bank, Minnesota. Cost to the FDIC: $6 million.

The FDIC also released it's quarterly report. A negative $20.7 billion in the deposit insurance fund was considered a positive.

The number of institutions on the FDIC's "Problem List" rose to 775, up from 702 at the end of 2009. In addition, the total assets of "problem" institutions increased during the quarter from $403 billion to $431 billion. These levels are the highest since June 30, 1993, when the number and assets of "problem" institutions totaled 793 and $467 billion, respectively, but the increase in the number of problem banks was the smallest in four quarters. Forty-one institutions failed during the first quarter. Chairman Bair noted that the vast majority of "problem" institutions do not fail.

The Deposit Insurance Fund (DIF) balance improved for the first time in two years. The DIF balance – the net worth of the fund – increased slightly to negative $20.7 billion, from negative $20.9 billion (unaudited) on December 31, 2009. The fund balance reflects a $40.7 billion contingent loss reserve that has been set aside to cover estimated losses. Just as banks reserve for loan losses, the FDIC has to set aside reserves for anticipated closings. Combining the fund balance with this contingent loss reserve shows total DIF reserves of $20 billion. Total insured deposits increased by 1.3 percent ($70.0 billion) during the first quarter.

Bank Failure Friday: Illinois Edition

It's rare to see so many bank failures in one state on the same day.

New Century Bank of Chicago, Illinois
Citizens Bank&Trust Company Of Chicago from Chicago, Illinois
Broadway Bank of Chicago, Illinois
Wheatland Bank of Naperville, Illinois
Peotone Bank and Trust Company of Peotone, Illinois
Lincoln Park Savings Bank of Chicago, Illinois

The really big one for the day:

FDIC Quarterly Report - Lowest Reserve Ratio on Record

The FDIC has released it's quarterly report and what pops out at you first is the fact the reserve ratio is currently negative.

FDIC reserve ratio Q4 2009

The Deposit Insurance Fund (DIF) decreased by $12.6 billion during the fourth quarter to a negative $20.9 billion (unaudited) primarily because of $17.8 billion in additional provisions for bank failures. Also, unrealized losses on available-for-sale securities combined with operating expenses reduced the fund by $692 million.

Accrued assessment income added $3.1 billion to the fund during the quarter, and interest earned, combined with termination fees on loss share guarantees and surcharges from the Temporary Liquidity Guarantee Program added $2.8 billion. For the year, the fund balance shrank by $38.1 billion, compared to a $35.1 billion decrease in 2008.