FDIC reports another bank closing, but it's actually part of the good news

The FDIC announced last week the takeover of a Fort Myers, Florida bank.  It was the third takeover of a Florida bank this year.  But that's good news.

U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.

 In 2007, only three banks went under. That number jumped to 25 in 2008, after the financial meltdown, and ballooned to 140 in 2009.

 In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to a total of 92 in 2011.

 Last year, bank failures slowed to 51 — still more than normal. In a strong economy, an average of only four or five banks close annually.

 The sharply reduced pace of bank closings shows sustained improvement.

I know, I know, closing a bank shows improvement?  Yes, it does in this case because the FDIC fund that is used to back-up depositors in these cases is in the black and the fund balance is expected to increase greatly over the next few years.

Want to learn more, read the full article.

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FDIC closes 5 banks. Total for year is now 39

Five more banks closed by FDIC.

Regulators have shut down a total of five banks in Florida, Georgia and Michigan, lifting the number of U.S. bank failures this year to 39. That follows 157 bank closures in 2010 in a limping economy and mounting soured loans.


The Federal Deposit Insurance Corp. on Friday seized the banks: First National Bank of Central Florida, based in Winter Park, Fla., with $352 million in assets; Cortez Community Bank of Brooksville, Fla., with $70.9 million in assets; First Choice Community Bank of Dallas, Ga., with $308.5 million in assets; Park Avenue Bank, based in Valdosta, Ga., with $953.3 million in assets; and Community Central Bank in Mount Clemens, Mich., with $476.3 million in assets. Sphere: Related Content

FDIC bank closures - and they're off!

The FDIC hit the ground running this year by closing three more banks, bringing the total this year to 14.

The failed banks, so-called community banks, are located in Georgia and Illinois, but have a message that resonates across the country.

Community banks get their money locally, and lend locally.  When they venture into commercial loans, which tend to be larger, they enter dangerous ground because a problem with a commercial loan translates into a large hit on the bank's books.
Read the full report from the New York Times, Regulators close three banks

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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