FDIC Bank Failure Report (05 March 2010)

On 26 February and 05 March 2010, the Federal Deposit Insurance Corporation closed six banks: Rainier Pacific Bank, Tacoma, WA; Carson River Community Bank, Carson City, NV; Sun American Bank, Boca Raton, FL; Bank of Illinois, Normal, IL; Waterfield Bank, Germantown, MD; and Centennial Bank, Ogden, UT. The assets of the closed banks were $1,887,100,000 and insured deposits were $1,497,490,000. The cost to the FDIC is estimated at $419,710,000. The closure data is available here, at the FDIC website.

According to our methodology, the recoverable value of the banks was only 57.11% of declared asset value. This makes the recoverability of this week's closures well below the cumulative recoverability since December of 2007, which stands at 57.63% (essentially unchanged from 57.64%). This means that the failed banks' assets were worth approximately 57.11¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.63¢ on the dollar.

Cumulative cost to the FDIC to close all 191 banks (since December of 2007) was brought to $61,735,260,000. These closures bring the total declared assets of failed institutions to $561,465,180,000, and total FDIC-insured deposits to $384,735,340,000. The recoverable value of all failed banks was only $323,600,080,000 (57.63% of the declared value).

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Stress in a State's banking system can be best seen in how costly that State's cumulative closures were to the FDIC. Below is the list of those States which likely have the most stressed banks, calculated by comparing that State's total FDIC cost of closures to their share of United States population. Only those States which have two or more closures are considered.

1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois

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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, representing those States which have the most overvalued banking system assets. Only those States which have had two or more closures are considered in this analysis.

1. Florida (40.50%, up from 39.95%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%)
5. Nevada (50.22%, up from 49.81%)
6. Ohio (50.84%)
7. Washington (54.17%, down from 55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Utah, replacing Maryland (58.13%)

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The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $419,710,000. The value now stands at $34,811,070,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.