Bank Failures in 2013

In the years leading up to the Great Recession bank failures were almost unheard of.  Then, in 2008, 26 banks were seized with many (IndyMac and Washington Mutual) making headline news. It took until 2010 for the number of failures to peak at 157 and it has been coming down slowly ever since. Thankfully, this year has seen fewer banks shut down than in any year since, 24.

Most banks have always been safe. But the Top 40 continue to show some of the most dangerous banks still out there. Perhaps the best way of describing this level of risk is to look at our projections for the 40th ranked bank in recent years:

Fall 2013: Cornerstone Bank of Duluth, Ga. has about a 37% chance of closing in the next year.
Fall 2012: Golden State Bank of Upland, Ca. had about a 54% chance. Today it is 6.6% (still risky by banking standards)
Fall 2011: Idaho Banking Company of Boise, ID at 76% (now 29%)

As you can see, the overall level of risk has fallen. But risky banks tend to take years to recover, if they ever do. As such, The Bank Blog intends to keep making new quarterly lists for some time to come. As banks fail, we will provide recaps as well. However, there will no longer be weekly notes when there are no failures as that is now the majority of weeks.

The Bank Blog

Number Four Fails

For the first time in nearly two months, regulators decided to shut down a bank. Fourth-ranked Texas Community Bank, N.A. of The Woodlands, Texas, was closed today by the Office of the Comptroller of the Currency. Spirit of Texas Bank, SSB (4230th) of College Station, Texas, has agreed to acquire $147.9 million of the failed bank's approximately $160.1 million in total assets. In addition, they will assume $142.6 million in total deposits. The FDIC will retain the remaining assets for later disposition.The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.8 million.

No New Failures

As of 9:00 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.

No New Failures

As of 6:45 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.

The Fall Top 40

The Bank Blog has ranks the Top 40 most likely to fail, regulated, deposit taking banks in the United States.

Shutdowns have fallen to a post-crisis low. Only three failures since the previous update, all on the Summer Top 40. Seven other banks departed the list of which one was acquired, two others were re-capitalized and the others all remaining among the 60 riskiest banks in the nation. Therefore would also like to caution our readers not to infer that currently listed banks or those leaving the list are now safe. While the overall likelihood of failure has fallen, distressed banks may not prove to be the best banking partners.

Only returning banks from the prior list are listed in bold and newly failed banks are listed in italics. 



1. THE BANK OF UNION of  EL RENO, OK 
2. THE NATIONAL REPUBLIC BANK OF CHICAGO of CHICAGO, IL 
3. EASTERN SAVINGS BANK of HUNT VALLEY, MD 
4. TEXAS COMMUNITY BANK, N.A. of THE WOODLANDS, TX 
5. AZTECAMERICA BANK of BERWYN, IL 
6. AMERICAN METRO BANK of CHICAGO, IL 
7. SLAVIE FEDERAL SAVINGS BANK of BEL AIR, MD 
8. FIRSTSECURE BANK AND TRUST CO. of PALOS HILLS, IL 
9. THE PEOPLES BANK of COVINGTON, GA
10. BEACH COMMUNITY BANK of FORT WALTON BEACH, FL 
11. PARK CITIES BANK of DALLAS, TX
12. OPTIMUMBANK of PLANTATION, FL
13. CAPITOL CITY BANK & TRUST COMPANY of ATLANTA, GA
14. CITY NATIONAL BANK OF NEW JERSEY of NEWARK, NJ 
15. ENTERPRISE BANK OF SOUTH CAROLINA of EHRHARDT, SC
16. SECURANT BANK & TRUST of MILWAUKEE, WI
17. THE COLUMBIA SAVINGS BANK of CINCINNATI, OH
18. VALLEY BANK of MOLINE, IL
19. INDEPENDENCE FEDERAL SAVINGS BANK of WASHINGTON, DC
20. CENTRUST BANK, NATIONAL ASSOCIATION of NORTHBROOK, IL
21. THE BANK OF GEORGIA of PEACHTREE CITY, GA
22. GUARANTY BANK of BROWN DEER, WI
23. FIRST SOUTHERN BANK of PATTERSON, GA
24. FIRST CITY BANK OF FLORIDA of FORT WALTON BEACH, FL
25. INDEPENDENT BANKERS' BANK OF FLORIDA of LAKE MARY, FL
26. HOMETOWN NATIONAL BANK of LONGVIEW, WA
27. DUPAGE NATIONAL BANK of WEST CHICAGO, IL
28. CECIL BANK of ELKTON, MD
29. BANK OF EASTMAN of EASTMAN, GA
30. EASTSIDE COMMERCIAL BANK of CONYERS, GA
31. BANK OF LAS VEGAS of LAS VEGAS, NV
32. STATE BANK OF HERSCHER of HERSCHER, IL  
33. LEGACY STATE BANK of LOGANVILLE, GA
34. PNA BANK DOWNERS of GROVE, IL
35. PBI BANK of LOUISVILLE, KY
36. THE HERITAGE BANK of HINESVILLE, GA
37. SECURITY SAVINGS BANK, SSB of SOUTHPORT, NC
38. SUNRISE BANK OF ALBUQUERQUE of ALBUQUERQUE, NM
39. GWINNETT COMMUNITY BANK of DULUTH, GA
40. CORNERSTONEBANK of ATLANTA, GA



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No New Failures

The Fall Top 40 is coming soon!

As of 5:30 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.

As of 5:10 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.