Friday Bank Failure Report For April 27, 2012

It has been a long time since I last reported on bank failures. Today the FDIC announced four closings so it gives me a chance to catch us up on that front. The count today for 2012 is 21 bank failures. One positive note is that the rate of bank failures has dropped, substantially. There were 91 bank failures in 2011 and 157 in 2010. The main driver behind these failures is still commercial real estate mortgages. Here is the latest graph from Trepp, Inc. (it is for February):

I wish to remind readers that I intend these announcements to represent a positive thing for the economy. By trying to prevent bank closings, needed capital is tied up and prevented from reaching the economy. These regional and local banks are the mainstays of commercial real estate loans, and those loans are taking them down. They are also the primarly lenders to SMEs (small to medium business enterprises) which contribute about one-half of the commerce and create one-half of the jobs in America. These banks’ inability to quickly deal with their problems been one of the primary causes of the credit crunch. Consequently, this is one of the major factors hindering a recovery. Thus when you see the FDIC closing a bank, capital is no longer bring wasted and tied up in failed enterprises. It is a sign of the economy trying to recover.

Here is the list:

Bank Name

City

State

CERT #

Acquiring Institution

Closing Date

Updated Date

Plantation Federal Bank Pawleys Island SC 32503 First Federal Bank April 27, 2012 April 27, 2012
Inter Savings Bank, fsb D/B/A InterBank, fsb Maple Grove MN 31495 Great Southern Bank April 27, 2012 April 27, 2012
HarVest Bank of Maryland Gaithersburg MD 57766 Sonabank April 27, 2012 April 27, 2012
Bank of the Eastern Shore Cambridge MD 26759 No Acquirer April 27, 2012 April 27, 2012
Fort Lee Federal Savings Bank, FSB Fort Lee NJ 35527 Alma Bank April 20, 2012 April 24, 2012
Fidelity Bank Dearborn MI 33883 The Huntington National Bank March 30, 2012 April 23, 2012
Covenant Bank & Trust Rock Spring GA 58068 Stearns Bank, N.A. March 23, 2012 March 27, 2012
New City Bank Chicago IL 57597 No Acquirer March 9, 2012 March 20, 2012
Global Commerce Bank Doraville GA 34046 Metro City Bank March 2, 2012 March 15, 2012
Home Savings of America Little Falls MN 29178 No Acquirer February 24, 2012 February 24, 2012
Central Bank of Georgia Ellaville GA 5687 Ameris Bank February 24, 2012 March 13, 2012
SCB Bank Shelbyville IN 29761 First Merchants Bank, National Association February 10, 2012 March 8, 2012
Charter National Bank and Trust Hoffman Estates IL 23187 Barrington Bank & Trust Company, National Association February 10, 2012 March 8, 2012
BankEast Knoxville TN 19869 U.S.Bank National Association January 27, 2012 March 8, 2012
Patriot Bank Minnesota Forest Lake MN 34823 First Resource Bank January 27, 2012 March 8, 2012
Tennessee Commerce Bank Franklin TN 35296 Republic Bank & Trust Company January 27, 2012 March 8, 2012
First Guaranty Bank and Trust Company of Jacksonville Jacksonville FL 16579 CenterState Bank of Florida, N.A. January 27, 2012 March 8, 2012
American Eagle Savings Bank Boothwyn PA 31581 Capital Bank, N.A. January 20, 2012 March 8, 2012
The First State Bank Stockbridge GA 19252 Hamilton State Bank January 20, 2012 March 8, 2012
Central Florida State Bank Belleview FL 57186 CenterState Bank of Florida, N.A. January 20, 2012 March 8, 2012
Western National Bank Phoenix AZ 57917 Washington Federal December 16, 2011 March 8, 2012
Premier Community Bank of the Emerald Coast Crestview FL 58343 Summit Bank December 16, 2011 March 8, 2012
Central Progressive Bank Lacombe LA 19657 First NBC Bank November 18, 2011 March 8, 2012
Polk County Bank Johnston IA 14194 Grinnell State Bank November 18, 2011 March 8, 2012
Community Bank of Rockmart Rockmart GA 57860 Century Bank of Georgia November 10, 2011 March 8, 2012
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