Regulators closed eight banks

Posted: September 6, 2010 in Banks, Failures
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Regulators closed eight banks, bring the total bank failure for the year to 118.

Recently, Federal and State regulators closed eight banks, four located in California, two in Florida and one each in Virginia and Illinois, due to inadequate capital and mounting loan losses. Assets of these bank failures totaled $4.41 billion, and the cost to the FDIC is estimated to be $473.5 million. This brings the total number of bank failures for August to 10. The pace of bank failure this year is well ahead of 2009, which saw a total of 140 banks closed amid the recession and mounting loan defaults.

A failing bank in Chicago has started raising some eyebrows in the media and in congress with its ties to president Obama and several progressive organizations. The bank in question, Shore Bank, received $35 million in stimulus money. Two weeks ago it was taken over by the FDIC. Three banks alone in Illinois were taken over by the FDIC in August.

Do you think the pace will quicken on bank closings with the economy, stay the same, or go down?

FDIC Bank Failures
Year No. of Failed Banks Total Assets of Failed Banks Loss to FDIC’s DIF
2007 3 $2,602,500,000 $113,000,000
2008 25 $373,588,780,000 $15,708,200,000
2009 140 $170,867,000,000 $36,432,500,000
2010 118 $85,343,800,000 $19,664,400,000
Total 286 $632,402,080,000 $71,918,100,000

Bank Name City State CERT # Closing Date Updated Date
Sonoma Valley Bank Sonoma CA 27259 20-Aug-10 20-Aug-10
Los Padres Bank Solvang CA 32165 20-Aug-10 20-Aug-10
Butte Community Bank Chico CA 33219 20-Aug-10 20-Aug-10
Pacific State Bank Stockton CA 27090 20-Aug-10 20-Aug-10
ShoreBank Chicago IL 15640 20-Aug-10 20-Aug-10
Imperial Savings and Loan Association Martinsville VA 31623 20-Aug-10 20-Aug-10
Independent National Bank Ocala FL 27344 20-Aug-10 20-Aug-10
Community National Bank at Bartow Bartow FL 25266 20-Aug-10 20-Aug-10
Palos Bank and Trust Company Palos Heights IL 17599 13-Aug-10 17-Aug-10
Ravenswood Bank Chicago IL 34231 6-Aug-10 11-Aug-10

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