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Another Friday with No Bank Failures


Another Friday with No Bank Failures

This was the second Friday in a row without a bank failure. Perhaps the FDIC started the Labor Day Weekend early. The total number of bank failures for 2010 remains at 118. Last Friday I generated a table showing the states with the most bank failures for 2010. Florida is on top with 22 bank failures.

There was one failure this week, but it wasn't a bank. It was a credit union. First American Credit Union in Wisconsin was liquidated on August 31st, and the NCUA arranged for First Community FCU to assume the assets and liabilities of the liquidated credit union. First American was a sizable credit union with $136.9 million in assets and 17,447 members. This brings the number of closed credit unions for 2010 to 14. Note, the NCUA's press release (pdf) stated that this was the 15th closure for 2010. However, based on the NCUA's list of 2010 credit union closures, the number appears to be 15.

Below is a summary of this week's one credit union failure:

14th Credit Union Liquidation of 2010 (closed on Aug 31)

  • NCUA Press Release
  • Liquidated CU: First American Credit Union, Beloit, WI
  • Size: $136.9 million in assets and served 17,447 members
  • Acquiring CU: First Community FCU, Parchment, MI
  • Financial Ratings: 1 out of 5 at DepositAccounts.com, 1 star at Bankrate.com, 0 star at BauerFinancial

The above ratings are based on 3/31/2010 data except for DepositAccounts.com which is based on June 2010 data.


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Anonymous   |     |   Comment #3
I do not know about Illinois but here in Georgia it is because there are so many counties (159) and each one thinks they should have their own community bank.  Many of the rural counties are just too poor to support their own bank.  Maybe this recession will pare them down to a more reasonable number of healthy banks.  I hope after all the dust settles, the requirements to establish new banks are made more stringent.
CraigPD   |     |   Comment #4
@Last Rose, Here's a possible explanation given the housing bubble -

Home-Price Appreciation x (New Construction Units ÷ Population) ∝ Bank Failures/Capita