Around The Corner From 100 Banks Closed
At least we made it out of September without hitting the magic number. However, it doesn’t look like we’ll make it out of October without hitting triple digits, as today, regulators closed three more banks in the nation. Those closures are:
Warren Bank, based in Warren, MI, which will have $501 million in deposits and $83 million in assets assumed by Huntington National Bank in Columbus, Ohio
Jennings State Bank in Spring Grove, MN, which will have $52.4 million in deposits and $56.3 million in assets assumed by Central Bank of Stillwater, MN.
Southern Colorado National Bank, Pueblo, CO, which will have $31.9 million in deposits and $39.5 in assets assumed by Legacy Bank of Wiley, CO.
Jennings Bank got caught up in the commercial real estate crash that’s expected to come, but it was almost expected as one of its former VP’s ended up in jail for illegal loan practices. Warren Bank’s problems were bad loans. I couldn’t find any information on what the problem with Southern Colorado was, except that the amount of their deposits kept dropping and the FDIC felt they were on the verge of collapse.
The countdown is on; who will be unlucky #100? Will it happen next Friday, or some day during the week? This should be an interesting next seven days, I figure. There is one big change lately, though. It’s not Southern banks closing as much these days. Sure, the banks closing are in states that also have financial issues, but it had mainly been southern or southwestern banks before. Just an interesting shift I thought I’d point out.