List of bank failures in the US since 2008

The US banking system has experienced its fair share of challenges since 2008. The number of bank failures has been a notable issue during this period.

Between 2008 and 2012, a total of 465 banks failed in the US. This was largely due to the financial crisis of 2008, which led to a significant increase in foreclosures and subsequent loan defaults.

Many of these failures were concentrated in the Western and Southern states, where the housing market was particularly affected. States like California, Arizona, and Nevada were among the hardest hit.

Some notable bank failures include the failure of Washington Mutual, which was the largest bank failure in US history at the time, with assets of over $300 billion.

The year 2008 saw a significant number of bank failures, with 25 banks closing their doors alone. This was a result of the credit crunch that started in August 2007.

In total, 27 banks failed since the beginning of the credit crunch. The Federal Deposit Insurance Corporation (FDIC) took on the costs of these failures, with some banks costing more than others.

The largest bank failure in history was Washington Mutual, which had assets of $307 billion. Its assets were sold to JPMorgan Chase for $1.9 billion.

So far this year, 25 banks have gone under, which is a staggering number.

In the past year, a total of 27 banks have closed their doors since the credit crunch began in August 2007.

Some of the banks that have failed include Jackson, GA, which closed on December 5, 2008, with assets totaling $237.5 million.

The FDIC's deposit insurance fund has taken a hit, with the cost of closing these banks ranging from $72.2 million to over $1.6 billion.

Loganville, Ga, another bank that failed, had assets of $681.0 million, with the FDIC estimating the cost to be between $200 and $240 million.

In total, the FDIC has estimated that it will cost between $700 million and $1.6 billion to close the failed banks, including PFF Bank & Trust in Pomona, Calif.

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Washington Mutual is the largest bank failure in history, with assets totaling $307 billion when it closed on September 25, 2008. The bank's assets were bought by JPMorgan Chase for $1.9 billion.

The bank's collapse was a result of risky mortgage loans, which weighed it down and ultimately led to its failure. This is a stark contrast to smaller banks that shut down, like Kansas-based Almena State Bank in 2020, which held just $69 million in assets.

The scale of Washington Mutual's failure is massive, with its assets being roughly 4,400 times larger than Almena State Bank's. This highlights the significant difference in size between large and small banks.

In 2008, a total of 25 banks failed, a staggering number that highlights the severity of the financial crisis.

The Federal Deposit Insurance Corporation (FDIC) reported that this year alone saw more bank failures than in the entire period since the credit crunch began in August 2007.

The FDIC's deposit insurance fund took a hit, with some bank failures costing upwards of $200 million.

Jackson, GA, and Loganville, Ga, were two of the cities that saw bank failures in 2008.

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The Jackson bank, which closed on December 5, 2008, had assets of $237.5 million and a cost to the FDIC of $72.2 million.

In contrast, the Loganville bank, which closed on November 7, 2008, had assets of $681.0 million and a cost to the FDIC of $200-$240 million.

These numbers demonstrate the significant impact that bank failures can have on the economy and on depositors who lose their savings.

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In 2008, a total of 25 banks failed in the United States, with the first failure occurring on January 25, 2008, when the Douglass National Bank in Kansas City, Missouri, was closed by the FDIC.

The bank failures in 2008 were widespread, with banks in 13 states experiencing closures. The largest bank failure of the year was Washington Mutual Bank, which was closed on September 25, 2008, and acquired by JPMorgan Chase & Co.

Here are the top 5 states with the most bank failures in 2008:

In 2008, a total of 25 banks failed in the United States. This was a significant increase from previous years, with 26 banks failing when including the Utah-based wholly owned subsidiary of Washington Mutual.

The first bank to fail was Douglass National Bank on January 25, 2008, with assets of $58.5 million. This was followed by Hume Bank on March 7, 2008, with assets of $18.7 million.

Bear Stearns, a major investment bank, failed on March 16, 2008, with assets of $395,000. This was a major blow to the financial system, and it led to a series of emergency measures by the Federal Reserve to stabilize the economy.

Some of the notable bank failures in 2008 include:

The failure of these banks was a major contributor to the financial crisis of 2008, which had far-reaching consequences for the economy and the global financial system.

In 2010, a total of 157 banks failed in the United States.

This is a stark reminder of the financial struggles that many institutions faced during that time.

The number of bank failures in 2010 was significantly higher than the 140 failures that occurred in 2009.

Here are the top 5 banks that failed in 2010:

In 2012, banks continued to struggle, but not as many failed as in previous years.

The FDIC reported that 51 banks failed in 2012, which is a significant decrease from the 157 banks that failed in 2010.

One of the notable bank failures in 2012 was the Bank of the West (also known as Bank of the West, NA) in the state of California, which closed on May 18, 2012.

Here are some of the banks that failed in 2012:

These failures were a result of various factors, including the ongoing economic downturn and the struggling housing market.

Bank failures can be a result of poor management, such as the case of Guaranty Bank, which was shut down by regulators in 2009 due to its poor lending practices and significant losses.

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Deregulation and lack of oversight also played a role in the failure of banks like Washington Mutual, which was sold to JPMorgan Chase in 2008 after it was deemed insolvent.

The housing market bubble burst in 2007, causing a massive decline in housing prices and leaving many banks with worthless mortgage-backed securities, contributing to the failure of banks like IndyMac Bank and Countrywide Financial.

Deregulation can lead to reckless behavior by banks, as seen in the case of the Bank of Credit and Commerce International (BCCI), which was allowed to operate with little oversight.

The Gramm-Leach-Bliley Act of 1999 repealed parts of the Glass-Steagall Act, allowing commercial banks to engage in investment activities, which contributed to the financial crisis of 2008.

A lack of effective regulation can result in banks taking on excessive risk, as was the case with the collapse of the Continental Illinois National Bank and Trust Company in 1984.

The Federal Reserve's failure to regulate the growth of the shadow banking system, which includes non-bank financial institutions, contributed to the 2008 financial crisis.

Inadequate regulation can also lead to a lack of transparency, making it difficult for investors and regulators to understand the true risks associated with a bank's activities.

The collapse of the Washington Mutual Bank in 2008 was partly due to its lack of effective risk management and oversight, which was exacerbated by a lack of regulation.

Financial innovation played a significant role in the lead-up to the crisis, with the development of complex financial products like adjustable-rate mortgages and credit default swaps.

These products expanded dramatically in the years leading up to the crisis, with CDO issuance growing from $20 billion in Q1 2004 to over $180 billion by Q1 2007.

The credit quality of CDO's declined from 2000 to 2007, as the level of subprime and other non-prime mortgage debt increased from 5% to 36% of CDO assets.

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This boom in innovative financial products went hand in hand with increasing complexity, multiplying the number of actors connected to a single mortgage.

With more distance from the underlying asset, these actors relied on indirect information, including computer models of rating agencies and risk management desks.

Instead of spreading risk, this provided the ground for fraudulent acts, misjudgments, and market collapse.

Financial institutions' instability destabilized other institutions, leading to knock-on effects, as economists have studied the crisis as an instance of cascades in financial networks.

Martin Wolf, chief economics commentator at the Financial Times, noted that certain financial innovations enabled firms to circumvent regulations, such as off-balance sheet financing.

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The wrong banking model can be a major contributor to bank failures. During the crisis, cooperative banking institutions, like credit unions, showed surprising resilience.

A report by the International Labour Organization found that credit unions were less likely to fail than their commercial bank competitors. In fact, the cooperative banking sector had a 20% market share of the European banking sector, but accounted for only 7% of all the write-downs and losses between 2007 and 2011.

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This is a stark contrast to commercial banks, which had a much higher failure rate. In the U.S., the rate of commercial bank failures was almost triple that of credit unions in 2008. By 2010, the gap had widened even further, with commercial bank failures occurring at almost five times the rate of credit unions.

Credit unions also demonstrated a commitment to lending to small- and medium-sized businesses, a sector that was otherwise struggling. While overall lending to these businesses decreased, credit unions increased their lending, helping to support the local economy.

Here's a comparison of commercial bank and credit union failure rates during the crisis:

This data highlights the importance of having the right banking model in place. By prioritizing community-focused lending and cooperative ownership, credit unions were able to weather the financial storm and continue serving their members.

Economists predicted a significant increase in bank failures due to the 2008 financial crisis, which indeed occurred with over 465 bank failures between 2008 and 2012.

Many economists believed that the crisis was caused by a combination of factors, including excessive lending and a lack of regulation, which led to a housing market bubble that eventually burst.

In 2007, economists were warning about the dangers of subprime lending, which involved lending to borrowers who couldn't afford the loans, and the subsequent collapse of the housing market.

The Federal Reserve, led by Chairman Alan Greenspan, kept interest rates low for an extended period, making it easier for people to borrow money and fueling the housing bubble.

Economists like Nouriel Roubini predicted a severe economic downturn, which materialized in 2008 with the collapse of Lehman Brothers and a global recession.

The crisis led to a significant increase in bank failures, with the FDIC reporting 465 bank failures between 2008 and 2012.

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Banks rarely fail on weekends, but Signature Bank, which failed on Sunday, March 13, 2023, is an exception. Of the 572 bank failures since the year 2000, Signature Bank is the only one to fail on a Sunday.

The majority of bank failures occur on Fridays, including Silicon Valley Bank. In fact, 95% of bank failures since 2000 have happened on Fridays.

Here's a breakdown of bank failures by day of the week:

Regulators often wait until Friday to take over a failing bank, giving them the entire weekend to settle accounts and transition to new management. This helps prevent panic and bank runs that could lead to a financial crisis.

The OCC played a crucial role in stabilizing the banking system. They were deeply involved in the Troubled Asset Relief Program (TARP), which provided capital assistance to large institutions that received support.

The agency helped design and apply stress tests to assess how well these institutions could withstand a substantial credit shock. This was a massive effort to ensure the stability of the banking system.

The OCC also launched the Mortgage Metrics Report, which collected and analyzed data on millions of mortgage loans extended by national banks. This data has been particularly useful in showing which types of loan modifications can help distressed borrowers avoid foreclosure.

Examiners needed to understand the difficulty banks faced in accessing liquid funds during the crisis. They also needed to know more about the complex financial instruments held by banks, often hidden in off-balance sheet vehicles that clouded their exposure to risk.

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Mistakes can happen at any time, but bank failures are more likely to occur on certain days. In fact, 95% of bank failures since 2000 have happened on Fridays, including the infamous Silicon Valley Bank.

The data shows that Fridays are by far the most common day for bank failures, with 545 instances since 2000. This is likely due to the fact that banks traditionally operate Monday through Friday and close on weekends, giving regulators a longer window to settle accounts and transition to new management.

Here's a breakdown of bank failures by day of the week:

The fact that Signature Bank failed on a Sunday, March 13, 2023, is an exception to the rule.

By Month, bank failures tend to spike around the start of a new quarter. January, April, July, and October are the four biggest months for bank failures since 2000.

Looking at the numbers, January and April consistently rank high in bank failures. In fact, January is the month with the most bank failures, with 52 failures recorded. April is close behind with 61 failures.

A notable exception is March, which doesn't necessarily have an unusual number of bank failures. However, it's worth noting that bank failures in March aren't always unusual, but rather part of the overall trend.

Here's a breakdown of the top 4 months for bank failures since 2000:

The largest bank failure in U.S. history was the 2008 collapse of Washington Mutual, which held $307 billion in assets.

In 2023, First Republic Bank became the second-largest bank failure, with $232 billion in assets, followed closely by Silicon Valley Bank with $209 billion in assets.

The 2008 bank failures were a significant blow to the financial system, with 27 banks closing their doors, including 25 in 2008 alone.

Washington Mutual's failure was largely due to its holdings of risky mortgage loans, a common problem among banks at the time.

Silicon Valley Bank was roughly 2,000 times the size of some of the smaller banks that failed in 2023, such as Heartland Tri-State Bank and Citizens Bank of Sac City, which held $139 and $66 million in assets, respectively.

The FDIC's deposit insurance fund took a significant hit from the failures of these large banks, with some costs estimated to be in the hundreds of millions of dollars.

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The location of bank failures in the United States since 2000 is a fascinating topic. California, Florida, Georgia, and Illinois are the top four states in terms of the concentration of bank failures, accounting for a significant portion of the country's bank failures since the year 2000.

According to the data, California has seen 43 bank failures, Florida has seen 76, Georgia has seen 93, and Illinois has seen 70. These four states have been particularly hard hit by bank failures.

Here's a breakdown of the top 5 states with the most bank failures since 2000:

It's worth noting that these states have been particularly vulnerable to bank failures due to various economic factors, including the housing and loan crisis from 2008 to 2012.

California, Florida, Georgia, and Illinois are the top states for bank failures, with California alone accounting for 42 bank failures since 2000.

The state of New York, often considered the banking capital of the U.S., surprisingly has only seen six bank failures since 2000.

Georgia and Florida combined have seen 30% of the country's bank failures since the turn of the century.

These four states have seen the brunt of bank failures in the U.S., with California, Florida, and Georgia taking huge hits from the housing and loan crisis between 2008 and 2012.

In fact, the banking sectors of Georgia and Florida were severely impacted by the crisis, contributing to the high number of bank failures in these states.

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In the year 2000, the banking landscape was already showing signs of stress. Alabama had 7 bank failures that year, which was a significant number considering the state's relatively small size.

California, on the other hand, had a whopping 43 bank failures, making it the state with the highest number of failures that year. This was likely due to the state's high population and economic activity.

Florida was another state that struggled with bank failures, with 76 institutions failing in the year 2000. This was more than 10 times the number of failures in Alaska, which had a total of 0 bank failures that year.

Here's a breakdown of the top 5 states with the most bank failures in 2000:

It's worth noting that some states, like Alaska and Delaware, had no bank failures in 2000, which suggests that they had a more stable banking system at the time.

In 2008, a total of 25 banks closed their doors, a staggering number that highlights the severity of the credit crunch.

This year alone saw a significant increase in bank failures, with 25 banks going under.

The Federal Deposit Insurance Corporation (FDIC) reported that the cost to their deposit insurance fund ranged from $200 to $240 million for one of the failed banks, Loganville, Ga.

Loganville, Ga. was one of the banks that failed in 2008, with assets totaling $681.0 million.

In contrast, another bank, Jackson, GA, had assets of $237.5 million when it closed its doors on December 5, 2008.

The FDIC reported that the cost to their deposit insurance fund for Jackson, GA was $72.2 million.

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