Tuesday, July 27, 2010
(graphic: carrolltongeorgia.com)
Banks continue to fail in large numbers across the country, marking the second consecutive year in which more than 100 financial institutions have shuttered their doors. After 140 banks collapsed in 2009, this year has witnessed 103 failures so far, putting it on pace to surpass last year’s bleak total.
The weak economy has left commercial property and development floundering, causing loan holders to fall behind on payments or default altogether. This in turn has wrecked the balance sheets of local and regional banks, such as the seven that turned to the Federal Deposit Insurance Corporation (FDIC) for help last week.
The seven were: Crescent Bank and Trust Co. of Georgia, with about $1 billion in assets; Sterling Bank of Florida ($407.9 million in assets); Home Valley Bank of Oregon ($251.8 million); SouthwestUSA Bank of Nevada ($214 million); Williamsburg First National Bank of South Carolina ($139.3 million in assets); Community Security Bank of Minnesota ($108 million); and. Thunder Bank of Kansas ($32.6 million).
The last two years mark the worst period for bank failures since the savings and loan crisis came to an end in 1992, when 181 institutions went under.
The worst year on record since the FDIC was created in 1933 was 1989, with 534 closures.
-Noel Brinkerhoff
US Bank Failures in 2010 Surpass 100 (by Marcy Gordon, Associated Press)
A History of Bank Failures in the United States (DaveManuel.com)
Bank Failures for Year Pass 100 Mark (by Noel Brinkerhoff, AllGov)
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