2009 YTD Bank Failures Already Most Since 1993

2009 YTD Bank Failures Already Most Since 1993 - 4/27/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

2009 YTD Bank Failures Already Most Since 1993
Kevin LaCroix

The D & O Diary. April 27, 2009
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EXCERPT: With the addition of four more bank closures this past Friday night, the YTD number of bank failures now stands at 29, which already exceeds 2008’s total of 25 and is the highest annual total since 1993, at the end of the last era of failed banks. All signs are that the number of bank failures will continue to grow in the months ahead, a prospect that is already affecting the D&O insurance marketplace, even for smaller community banks. The four banks that closed this past week were: American Southern Bank of Kennesaw, Georgia, which prior to its closure had assets of $112.3 million; Michigan Heritage Bank in Farmington Hills, Michigan, which previously had assets of $184.6 million; First Bank of Beverly Hills in Calabasas, California, which previously had assets of $1.5 billion; and First Bank of Idaho in Ketchum, Idaho, which has assets of $488.9 million. Although the assets of three of the banks were sold to other financial institutions, the FDIC was unable to find a buyer for First Bank of Beverly Hills, forcing the FDIC to assume the financial institutions assets. The closure of American Southern Bank adds to the growing list of failed banks in Georgia, which, as leads the nation in number of bank failures. With the addition of American Southern, there have been ten bank failures in Georgia since January 1, 2008, including five already in 2009. California is a close second behind Georgia in number of failed banks, and the failure of First Bank of Beverly Hills brings the number of California bank closures since January 1, 2008 to nine. But the overall geographic distribution of the latest four banks to fail, and indeed of the banks closed so far in 2009, highlights the fact that the bank woes are not concentrated in any one geographic area.

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