About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured Savings Rates

Popular Posts

Featured Accounts

One Unusual Bank Failure Last Week


One Unusual Bank Failure Last Week

For several years after the 2008 financial crisis, Friday bank failures used to be common. Now it’s much less common. We haven’t seen a Friday bank failure since September 13. However, we did have one bank failure last week, and it didn’t take place on Friday. The small Bank of Jackson County in Florida was closed by state regulators on Wednesday, October 30. That was the 23rd bank failure of 2013. At this time last year there had been 49 bank failures.

The year that had the most bank failures after the last financial crisis was 2010 when 157 banks failed. Since then each year there have been fewer bank failures. Below is a summary of the bank failure numbers since 2005:

  • 2005: 0
  • 2006: 0
  • 2007: 3
  • 2008: 25
  • 2009: 140
  • 2010: 157
  • 2011: 92
  • 2012: 51
  • 2013: 23 (as of Nov 4)

The closure of Bank of Jackson County was typical. The FDIC was able to find a buyer. First Federal Bank of Florida, Lake City, Florida, agreed to assume all of the deposits. Consequently, no one lost any money. According to the FDIC FAQs:

No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to First Federal Bank of Florida.

CD customers of Bank of Jackson County will have to wait to see what happens with their rates. The acquiring bank may reduce rates on the existing CDs. However, customers will be allowed to make a penalty-free early withdrawal.

No credit unions have failed since September. However, the NCUA placed Mayfair Federal Credit Union in Philadelphia into conservatorship last Friday. During the conservatorship, NCUA will work to resolve issues affecting the credit union’s safety and soundness. It’s a small credit union with just 1,527 members and $14.3 million in assets.

The total number of credit union liquidations for this year remains at 13.

Below is the summary of last week’s bank failure:

23rd Bank Failure of 2013 (4th in Florida)

  • Closed Bank: Bank of Jackson County, Graceville, FL
  • FDIC Press Release
  • Size: 2 branches, $25.5 million in assets and $25.0 million in deposits
  • Acquiring Bank: First Federal Bank of Florida, Lake City, FL
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by First Federal Bank of Florida (FDIC Q&A)
  • Rate Changes: Bank of Jackson County's rates will be reviewed by First Federal Bank of Florida and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $5.1 million
  • Financial Ratings: 1 star at Bankrate.com, ? star at BauerFinancial, F & Texas Ratio of 328.25% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com and an F is lowest at DepositAccounts.com &, Texas Ratios over 100% is considered at risk. Ratings are based on June 30, 2013 data.


Related Posts