The U.S. recorded its fourth bank failure this year — the first collapse of financial institutions since 2017, according to data from the Federal Deposit Insurance Corp (FDIC).
The most recent failure was on Nov. 1 when City National Bank of New Jersey closed its three branches with assets of about $120.6 million and deposits totaling $111.2 million. Assets and deposits were assumed by Industrial Bank, a press release from the FDIC indicated.
“On average, there are five bank failures each year in non-crisis times, according to FDIC data. There have been only three years since 1933 without a single bank failure,” said the FDIC release. Bank failures increased dramatically in the last financial crisis, rising from 25 in 2008 to 140 in 2009. The number reached a peak of 157 in 2010.
Resolute Bank in Maumee, Ohio closed on Oct. 25 and was assumed by Buckeye State Bank in Powell, Ohio. It had one branch with $27.1 million in total assets and $26.2 million in total deposits.
Louisa Community Bank of Louisa, Kentucky also shuttered on Oct. 25, and the assets were purchased by Kentucky Farmers Bank Corporation in Catlettsburg, Kentucky. As of June 30, Louisa Community Bank had approximately $29.7 million in total assets and $26.5 million in total deposits.
Enloe State Bank of Cooper, Texas closed May 31 with total assets of $36.7 million and total deposits of $31.3 million. Approximately $500,000 in deposits exceeded FDIC insurance limits. Legend Bank in Bowie, Texas assumed deposits.
Last year was the first time since 2006 that not one U.S. bank failed during the year, and the third time since the FDIC was founded in 1933 that an entire year went by without a bank going under. Among smaller banks and those that are most vulnerable to failure, just eight of them failed in 2017. All of the failed banks were bought by bigger banks, noted the report.
