FDIC Bank Failure Report - Extra-Late Edition

This week, the Federal Deposit Insurance Corporation closed five banks: First State Bank of Altus (Altus, Oklahoma); Integrity Bank (Jupiter, FL); Peoples Community Bank (West Chester, OH); First Bankamericano (Elizabeth, NJ); and Mutual Bank (Harvey, IL). Total assets of the closed banks were $2,694,200,000. The cost to the FDIC is estimated at $911,700,000. The percentage of FDIC loss out of total assets is 33.84%.

This closure brings the total assets of FDIC-failed banks (since December of 2007) to $418,695,280,000, with cost-to-FDIC brought to $28,794,700,000 - 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 6.88%, up from 6.70% as of last report.

Upon elimination of WaMu's assets from the analysis, total assets are $111,695,280,000, and total cost is $28,794,700,000. The percentage of FDIC losses to total assets now stands at 25.78% up from 25.58% as of last report.

The first closure of an Ohio bank in the Depression is a good sign for the accuracy of our Economic Stress Report. In the last edition, Ohio ranked as the second-most stressed State, according to our analysis. Indeed, three of the five States with this week's failures are on our watch list. We expect that our Stress Report will more accurately predict coming bank failures (an indicator of economic stress) in future months.

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

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

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

1. Utah - 40.32%
2. Idaho - 39.11%
3. Michigan - 39.03%
4. Wyoming - 38.57%
5. Florida - 38.12%
6. West Virginia - 36.52%
7. Maryland - 35.00%
8. South Dakota - 33.90%
9. Minnesota - 33.01%
10. Washington - 32.39%