FDIC Bank Failure Report

Last week, the Federal Deposit Insurance Corporation closed five banks: Dwelling House Savings and Loan Association (Pittsburgh, Pennsylvania); Colonial Bank (Montgomery, Alabama); Union Bank, N.A. (Gilbert, Arizona); Community Bank of Arizona (Phoenix, Arizona); and Community Bank of Nevada (Las Vegas, Nevada). Total assets of the closed banks were $26,815,900,000. The cost to the FDIC is estimated at $3,674,800,000. The percentage of FDIC loss out of total assets is 13.70%.

This closure brings the total assets of FDIC-failed banks (since December of 2007) to $446,280,180,000, with cost-to-FDIC brought to $32,654,500,000 - this includes the assets of Washington Mutual, whose closing offered no cost to the FDIC. The percentage of FDIC losses to total assets presently stands at 7.32%, up from 6.91% as of last report.

Upon elimination of WaMu's assets from the analysis, total assets are $139,280,180,000, and total cost is $23,654,500,000. The percentage of FDIC losses to total assets now stands at 23.45% down from 25.77% as of last report.

A new record and two runners up for the ratio for FDIC losses to bank assets in a single institution were made this week. The Community Bank of Nevada had a 51.41% ratio of losses to assets; Dwelling House, 50.75%; and Union Bank, 49.19%. These banks were seriously insolvent, with losses approaching those normally discovered in Ponzi schemes!

On the basis of the ratio of bank closures to population, and the ten most afflicted states are:

1. Nevada
2. Georgia
3. Utah
4. Illinois
5. Kansas
6. Oregon
7. Minnesota
8. Missouri
9. Florida
10. Colorado

On the basis of the total losses-to-assets ratio in each state, the worst are as follows:

1. Pennsylvania - 50.75%
2. Utah - 40.32%
3. Idaho - 39.11%
4. Michigan - 39.03%
5. Wyoming - 38.57%
6. Florida - 37.62%
7. West Virginia - 36.52%
8. Nevada - 35.56%
9. Maryland - 35.00%
10. South Dakota - 33.90%