Report: 157 U.S. banks failed in 2010
D.C., Washington, United States (AHN) – A report released Tuesday by the Federal Deposit Insurance Corporation said 157 U.S. banks closed in 2010 and more are expected to shutter in the coming months. The figure is the worst since 1992 when a savings-and-loan crisis hit the country.
Prior to 2006, there were no bank closures. However, the crash of Wall Street and the global financial crisis triggered bank failures that the number of shuttered banks grew to 140 in 2009.
More alarming is that the FDIC has a list of 860 problem banks as of Sept. 30, the highest number since 1993. Statistically about 20 percent of problem banks on FDIC’s list eventually end up closing.
Because of the spate of bank failures, the FDIC coffers are depleted, although the agency forecast it will have sufficient funds in the future to address an expected rise in bank closures until 2014.
Trends, however, indicate the size of banks that failed has become smaller. For 2010, the average assets of shuttered banks stood at $92.1 billion, down 45.7 percent from the 2009 average of $169.7 billion.
In December alone, the FDIC listed eight banks that closed. These were:
- Community National Bank in Lino Lakes, MN
- First Southern Bank in Batesville, AR
- United Americas Bank in Atlanta, GA
- Appalachian Community Bank in McCaysville, GA
- Chestatee State Bank in Dawsonville, GA
- The Bank of Miami, National Association in Coral Gables, FL
- Earthstar Bank in Southampton, PA
- Paramount Bank iin Farmington Hills, MI.
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