FDIC Bank Failure Report

This weekend, the Federal Deposit Insurance Corporation closed three banks: Century Bank, FSB of Sarasota, Florida; Orion Bank of Naples, Florida; and Pacific Coast National Bank of San Clemente, California. The total assets of the closed banks were $3,562,400,000, and total deposits were approximately $2,861,900,000. The cost to the FDIC is estimated at $968,400,000.

According to our methodology, the recoverable value of the banks was $1,875,500,000, or only 52.65% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.70% (down from last week's 57.73%).

Cumulative cost-to-FDIC so far in the Depression was brought to $51,476,900,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $515,523,980,000, and total FDIC-insured deposits to $348,929,220,000. The recoverable value of all failed banks was only $297,452,320,000 (57.70% of the declared value).

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The closures in Florida confirm our model of Florida as the state with the poorest quality assets. Century Bank had a recoverable value by our model of only 39.42% - the 5th worst so far in the Depression. In keeping with the spirit of poor quality of assets, we are introducing the Frugal Scotsman's Ten Nastiest Bank Closures To Date. We will be updating this list as newer, nastier closures occur. We are quite confident that this will be a regular feature, given the trend in place of deteriorating bank asset quality.

1. IndyMac (CA) - 22.99%
2. BankUnited FSB (FL) - 28.91%
3. First Bank of Idaho - 37.39%
4. Community Bank of Nevada - 39.10%
5. Century Bank FSB (FL) - 39.42%
6. First Bank of Beverly Hills (CA) - 40.39%
7. Bank of Clark County (WA) - 40.81%
8. Horizon Bank (MN) - 40.98%
9. Union Bank (AZ) - 41.13%
10. Franklin Bank (TX) - 41.18%

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On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.

1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida (up from #11)
10. Arizona

The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.

1. Florida (36.00, up from 32.44%)
2. California (42.43%, up from 42.37%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Georgia (53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)

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The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets its first adjustment now with a subtraction of 986,400,000. The value stands at 44,013,600. Forty-four weeks to go!