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Sunday, October 04, 2009

Failed Banks and the Deposit Insurance Fund

by Calculated Risk on 10/04/2009 02:59:00 PM

As a companion to the Oct 2nd Problem Bank List (unofficial), below is a list of failed banks since Jan 2007.

From the FDIC FAQs: (ht JB)

11. When is the DIF expected to go negative?

FDIC estimates that the DIF balance as of September 30, 2009 will be negative.
However the DIF reserves against future losses, and the DIF still has cash to pay for bank closures - but I show the DIF balance as zero on the following graph:

Deposit Insurance Fund Click on graph for larger image in new window.

The graph shows the cumulative estimated losses to the FDIC Deposit Insurance Fund (DIF) and the quarterly assets of the DIF (as reported by the FDIC). Note that the FDIC takes reserves against future losses in the DIF, and collects fees and special assessments - so you can't just subtract estimated losses from assets to determine the assets remaining in the DIF.

The cumulative estimated losses for the DIF, since early 2007, is now over $44.5 billion.

Regulators closed three more banks on Friday, and that brings the total FDIC insured bank failures to 98 in 2009. Although regulators have slowed down in recent weeks, they are still on pace to close over 130 banks this year - the most since 1992.

Failed Bank List

Deposits, assets and estimated losses are all in thousands of dollars.

Losses for failed banks in 2009 are the initial FDIC estimates. The percent losses are as a percent of assets. Note that losses for the Irwin banks were combined by the FDIC, so one of the banks shows up as zero percent in the table.

See description below table for Class and Cert (and a link to FDIC ID system).

The table is wide - use scroll bars to see all information!

Click here for a full screen version.

NOTE: Columns are sortable - click on column header (Assets, State, Bank Name, Date, etc.)

Class: from FDIC
The FDIC assigns classification codes indicating an institution's charter type (commercial bank, savings bank, or savings association), its chartering agent (state or federal government), its Federal Reserve membership status (member or nonmember), and its primary federal regulator (state-chartered institutions are subject to both federal and state supervision). These codes are:
  • N National chartered commercial bank supervised by the Office of the Comptroller of the Currency
  • SM State charter Fed member commercial bank supervised by the Federal Reserve
  • NM State charter Fed nonmember commercial bank supervised by the FDIC
  • SA State or federal charter savings association supervised by the Office of Thrift Supervision
  • SB State charter savings bank supervised by the FDIC
  • Cert: This is the certificate number assigned by the FDIC used to identify institutions and for the issuance of insurance certificates. You can click on the number and see "the last demographic and financial data filed by the selected institution".