FDIC Bank Failure Report

Well, what can we say. We forgot to do last week's closure. There were no closures by the FDIC this week, presumably caused by the massive snowstorm which has shut down most of the East Coast. However, we're confident the banking system will limp along just fine without the fine folks at the FDIC.

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On 05/02/10, the Federal Deposit Insurance Corporation closed one bank: 1st American State Bank of Minnesota, Hancock, MN. The assets of the closed bank were $18,200,000 and insured deposits were $16,300,000. The cost to the FDIC is estimated at $3,100,000. The closure data is available here, at the FDIC website.

According to our methodology, the recoverable value of the bank was only 72.53% of the declared asset value. This makes the recoverability of this week's closures strikingly above the cumulative recoverability since December of 2007, which stands at 57.66% (unchanged from last report). This means that the failed bank's assets were worth approximately 72.53¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.66¢ on the dollar.

Cumulative cost-to-FDIC so far in the Depression was brought to $59,646,820,000. These closures bring the total declared assets of all 181 FDIC-failed banks (since December of 2007) to $555,391,780,000, and total FDIC-insured deposits to $379,874,450,000. The recoverable value of all failed banks was only $320,227,630,000 (57.66% of the declared value).

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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 weighting with 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. Minnesota (up from #4)
4. Illinois (down from #3)
5. Utah
6. Kansas
7. Oregon
8. Missouri
9. Florida
10. Washington

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 (39.81%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.13%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Maryland (56.90%)

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The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $3,100,000. The value now stands at $36,299,520,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click on the Meter's link to read the FDIC press release). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.