As of October 26, 2009, over 100 banks have failed this year. Most of these are smaller regional banks who, in order to compete with larger banks, offered risky loans and are now facing customer defaults. Larger banks were offered government bailouts to prevent failure, but these smaller banks whose failures are not seen as major risks to the economy are left without taxpayer assistance.
The FDIC covers savings accounts, checking accounts, and certificates of deposit to ensure that customers hardly notice when one of these smaller banks fail. As long as a bank is a member of FDIC, and most are, customers should be confident that even if a bank fails, they will be able to withdraw their deposits within the coverage limit. Predicting the increase of bank failures this year, the FDIC decided over a year ago to increase its insurance limits. In 2008, only 26 banks failed compared to 106 so far this year.
Although there is often worry in the press that FDIC is underfunded and might run out of money, that situation is highly unlikely. The FDIC is requiring banks to start paying their FDIC premiums which have largely been ignored for decades to increase its available funds. The FDIC also has an extensive line of credit with the Treasury, and because Congress will always vote to make sure the FDIC will be able to cover necessary expenses, it is in effect a limitless credit line.
Here is a full list of banks that have failed since 2000. I will update this list as necessary.
| Bank | Location | Failed Date |
|---|---|---|
| Riverview Community Bank | Otsego, MN | October 23, 2009 |
| Partners Bank | Naples, FL | October 23, 2009 |
| Hillcrest Bank Florida | Naples, FL | October 23, 2009 |
| Flagship National Bank | Bradenton, FL | October 23, 2009 |
| First DuPage Bank | Westmont, IL | October 23, 2009 |
| Bank of Elmwood | Racine, WI | October 23, 2009 |
| American United Bank | Lawrenceville, GA | October 23, 2009 |
| San Joaquin Bank | Bakersfield, CA | October 16, 2009 |
| Warren Bank | Warren, MI | October 2, 2009 |
| Southern Colorado National Bank | Pueblo, CO | October 2, 2009 |
| Jennings State Bank | Spring Grove, MN | October 2, 2009 |
| Georgian Bank | Atlanta, GA | September 25, 2009 |
| Irwin Union Bank, F.S.B. | Louisville, KY | September 18, 2009 |
| Irwin Union Bank and Trust Company | Columbus, IN | September 18, 2009 |
| Venture Bank | Lacey, WA | September 11, 2009 |
| Corus Bank, N.A. | Chicago, IL | September 11, 2009 |
| Brickwell Community Bank | Woodbury, MN | September 11, 2009 |
| Vantus Bank | Sioux City, IA | September 4, 2009 |
| Platinum Community Bank | Rolling Meadows, IL | September 4, 2009 |
| InBank | Oak Forest, IL | September 4, 2009 |
| First State Bank | Flagstaff, AZ | September 4, 2009 |
| First Bank of Kansas City | Kansas City, MO | September 4, 2009 |
| Mainstreet Bank | Forest Lake, MN | August 28, 2009 |
| Bradford Bank | Baltimore, MD | August 28, 2009 |
| Affinity Bank | Ventura, CA | August 28, 2009 |
| First Coweta Bank | Newnan, GA | August 21, 2009 |
| CapitalSouth Bank | Birmingham, AL | August 21, 2009 |
| Guaranty Bank | Austin, TX | August 21, 2009 |
| ebank | Atlanta, GA | August 21, 2009 |
| Colonial Bank | Montgomery, AL | August 14, 2009 |
| Community Bank of Nevada | Las Vegas, NV | August 14, 2009 |
| Union Bank, National Association | Gilbert, AZ | August 14, 2009 |
| Dwelling House Savings and Loan Association | Pittsburgh, PA | August 14, 2009 |
| Community Bank of Arizona | Phoenix, AZ | August 14, 2009 |
| First State Bank | Sarasota, FL | August 7, 2009 |
| Community National Bank of Sarasota County | Venice, FL | August 7, 2009 |
| Community First Bank | Prineville, OR | August 7, 2009 |
| Integrity Bank | Jupiter, FL | July 31, 2009 |
| Peoples Community Bank | West Chester, OH | July 31, 2009 |
| Mutual Bank | Harvey, IL | July 31, 2009 |
| First State Bank of Altus | Altus, OK | July 31, 2009 |
| First BankAmericano | Elizabeth, NJ | July 31, 2009 |
| Waterford Village Bank | Williamsville, NY | July 24, 2009 |
| Security Bank of North Metro | Woodstock, GA | July 24, 2009 |
| Security Bank of North Fulton | Alpharetta, GA | July 24, 2009 |
| Security Bank of Jones County | Gray, GA | July 24, 2009 |
| Security Bank of Houston County | Perry, GA | July 24, 2009 |
| Security Bank of Gwinnett County | Suwanee, GA | July 24, 2009 |
| Security Bank of Bibb County | Macon, GA | July 24, 2009 |
| Vineyard Bank | Rancho Cucamonga, CA | July 17, 2009 |
| Temecula Valley Bank | Temecula, CA | July 17, 2009 |
| First Piedmont Bank | Winder, GA | July 17, 2009 |
| BankFirst | Sioux Falls, SD | July 17, 2009 |
| Bank of Wyoming | Thermopolis, WY | July 10, 2009 |
| Rock River Bank | Oregon, IL | July 2, 2009 |
| Millennium State Bank of Texas | Dallas, TX | July 2, 2009 |
| John Warner Bank | Clinton, IL | July 2, 2009 |
| Founders Bank | Worth, IL | July 2, 2009 |
| First State Bank of Winchester | Winchester, IL | July 2, 2009 |
| First National Bank of Danville | Danville, IL | July 2, 2009 |
| Elizabeth State Bank | Elizabeth, IL | July 2, 2009 |
| Mirae Bank | Los Angeles, CA | June 26, 2009 |
| Horizon Bank | Pine City, MN | June 26, 2009 |
| Neighborhood Community Bank | Newnan, GA | June 26, 2009 |
| MetroPacific Bank | Irvine, CA | June 26, 2009 |
| Community Bank of West Georgia | Villa Rica, GA | June 26, 2009 |
| Southern Community Bank | Fayetteville, GA | June 19, 2009 |
| First National Bank of Anthony | Anthony, KS | June 19, 2009 |
| Cooperative Bank | Wilmington, NC | June 19, 2009 |
| Bank of Lincolnwood | Lincolnwood, IL | June 5, 2009 |
| Strategic Capital Bank | Champaign, IL | May 22, 2009 |
| Citizens National Bank | Macomb, IL | May 22, 2009 |
| BankUnited, FSB | Coral Gables, FL | May 21, 2009 |
| Westsound Bank | Bremerton, WA | May 8, 2009 |
| America West Bank | Layton, UT | May 1, 2009 |
| Silverton Bank, NA | Atlanta, GA | May 1, 2009 |
| Citizens Community Bank | Ridgewood, NJ | May 1, 2009 |
| American Southern Bank | Kennesaw, GA | April 24, 2009 |
| Michigan Heritage Bank | Farmington Hills, MI | April 24, 2009 |
| First Bank of Idaho | Ketchum, ID | April 24, 2009 |
| First Bank of Beverly Hills | Calabasas, CA | April 24, 2009 |
| Great Basin Bank of Nevada | Elko, NV | April 17, 2009 |
| American Sterling Bank | Sugar Creek, MO | April 17, 2009 |
| New Frontier Bank | Greeley, CO | April 10, 2009 |
| Cape Fear Bank | Wilmington, NC | April 10, 2009 |
| Omni National Bank | Atlanta, GA | March 27, 2009 |
| FirstCity Bank | Stockbridge, GA | March 20, 2009 |
| TeamBank, NA | Paola, KS | March 20, 2009 |
| Colorado National Bank | Colorado Springs, CO | March 20, 2009 |
| Freedom Bank of Georgia | Commerce, GA | March 6, 2009 |
| Security Savings Bank | Henderson, NV | February 27, 2009 |
| Heritage Community Bank | Glenwood, IL | February 27, 2009 |
| Silver Falls Bank | Silverton, OR | February 20, 2009 |
| Corn Belt Bank & Trust Co. | Pittsfield, IL | February 13, 2009 |
| Sherman County Bank | Loup City, NE | February 13, 2009 |
| Riverside Bank of the Gulf Coast | Cape Coral, FL | February 13, 2009 |
| Pinnacle Bank of Oregon | Beaverton, OR | February 13, 2009 |
| FirstBank Financial Services | McDonough, GA | February 6, 2009 |
| County Bank | Merced, CA | February 6, 2009 |
| Alliance Bank | Culver City, CA | February 6, 2009 |
| Suburban FSB | Crofton, MD | January 30, 2009 |
| Ocala National Bank | Ocala, FL | January 30, 2009 |
| MagnetBank | Salt Lake City, UT | January 30, 2009 |
| 1st Centennial Bank | Redlands, CA | January 23, 2009 |
| Bank of Clark County | Vancouver, WA | January 16, 2009 |
| National Bank of Commerce | Berkeley, IL | January 16, 2009 |
| Sanderson State Bank | Sanderson, TX | December 12, 2008 |
| Haven Trust Bank | Duluth, GA | December 12, 2008 |
| First Georgia Community Bank | Jackson, GA | December 5, 2008 |
| PFF Bank & Trust | Pomona, CA | November 21, 2008 |
| Downey Savings & Loan | Newport Beach, CA | November 21, 2008 |
| Community Bank | Loganville, GA | November 21, 2008 |
| Franklin Bank, SSB | Houston, TX | November 7, 2008 |
| Security Pacific Bank | Los Angeles, CA | November 7, 2008 |
| Freedom Bank | Bradenton, FL | October 31, 2008 |
| Alpha Bank & Trust | Alpharetta, GA | October 24, 2008 |
| Meridian Bank | Eldred, IL | October 10, 2008 |
| Main Street Bank | Northville, MI | October 10, 2008 |
| Washington Mutual Bank FSB | Park City, UT | September 25, 2008 |
| Washington Mutual Bank | Henderson, NV | September 25, 2008 |
| Ameribank | Northfork, WV | September 19, 2008 |
| Silver State Bank | Henderson, NV | September 5, 2008 |
| Integrity Bank | Alpharetta, GA | August 29, 2008 |
| Columbian Bank & Trust | Topeka, KS | August 22, 2008 |
| First Priority Bank | Bradenton, FL | August 1, 2008 |
| First National Bank of Nevada | Reno, NV | July 25, 2008 |
| First Heritage Bank, NA | Newport Beach, CA | July 25, 2008 |
| IndyMac Bank | Pasadena, CA | July 11, 2008 |
| First Integrity Bank, NA | Staples, MN | May 30, 2008 |
| ANB Financial, NA | Bentonville, AR | May 9, 2008 |
| Hume Bank | Hume, MO | March 7, 2008 |
| Douglass National Bank | Kansas City, MO | January 25, 2008 |
| Miami Valley Bank | Lakeview, OH | October 4, 2007 |
| NetBank | Alpharetta, GA | September 28, 2007 |
| Metropolitan Savings Bank | Pittsburgh, PA | February 2, 2007 |
| Bank of Ephraim | Ephraim, UT | June 25, 2004 |
| Reliance Bank | White Plains, NY | March 19, 2004 |
| Guaranty National Bank of Tallahassee | Tallahassee, FL | March 12, 2004 |
| Dollar Savings Bank | Newark, NJ | February 14, 2004 |
| Pulaski Savings Bank | Philadelphia, PA | November 14, 2003 |
| First National Bank of Blanchardville | Blanchardville, WI | May 9, 2003 |
| Southern Pacific Bank | Torrance, CA | February 7, 2003 |
| Farmers Bank of Cheneyville | Cheneyville, LA | December 17, 2002 |
| Bank of Alamo | Alamo, TN | November 8, 2002 |
| AmTrade International Bank | Atlanta, GA | September 30, 2002 |
| Universal Federal Savings Bank | Chicago, IL | June 27, 2002 |
| Connecticut Bank of Commerce | Stamford, CT | June 26, 2002 |
| New Century Bank | Shelby Township, MI | March 28, 2002 |
| Net 1st National Bank | Boca Raton, FL | March 1, 2002 |
| NextBank, NA | Phoenix, AZ | February 7, 2002 |
| Oakwood Deposit Bank Co. | Oakwood, OH | February 1, 2002 |
| Bank of Sierra Blanca | Sierra Blanca, TX | January 18, 2002 |
| Hamilton Bank, NA | Miami, FL | January 11, 2002 |
| Sinclair National Bank | Gravette, AR | September 7, 2001 |
| Superior Bank, FSB | Hinsdale, IL | July 27, 2001 |
| Malta National Bank | Malta, OH | May 3, 2001 |
| First Alliance Bank & Trust Co. | Manchester, NH | February 2, 2001 |
| National State Bank of Metropolis | Metropolis, IL | December 14, 2000 |
| Bank of Honolulu | Honolulu, HI | October 13, 2000 |
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{ 5 comments… read them below or add one }
I think you are right about not worrying too much about the FDIC running out of money. I don’t like when people say things like limitless though. Somebody has to fund that line of credit if they ever have to use it. Last I checked the US tax payers were already funding the banks, the auto industry, and the real estate industry in other forms so it would kind of hurt if we had to start funding the FDIC too.
It’s limitless because the government will just “print more money” if needed… increase the money supply. The FDIC will be the last thing the government will let fail, it’s the last sign of faith. The banking system can only operate with public faith in the government to supply money, and that faith is only as strong as the solvency of the FDIC.
Unfortunately, banks in my state (Georgia) have been hit particularly hard with bank failures.
I am unemployed and looking for Merchant Service Department, Admistrative Support. Know any one in the banking industry.
One thing to keep in mind is that there are about 8000 banks in the country. So 100 banks represents a tad over 1% failure rate. Look at it that way and it helps keep it in perspective.