Bank Closures Kick The Door Down
My goodness! We had been sitting on 98 bank closures for close to 3 weeks, and I started wondering if maybe we were just going to limp over the 100 mark, if we actually reached it.
It seems this one wasn’t even going to be close, as 7 banks were closed on the same day, with another bank, #99, being closed on Wednesday, bringing this year’s total to an amazing 106 banks. That’s phenomenal, and scary at the same time.
Instead of naming them all, which can be found in the news, I think it’s more important to talk about where these banks closed. All of them were small, regional banks. All of them closed in states where real estate is killing them. Florida led the list with 3 bank closures, followed by one in Georgia, Wisconsin, Minnesota, Illinois, and California. That only one bank closed in California with their ills is almost surprising, as much as none closing in Arizona or Nevada, with their housing situations, is also surprising.
This is the highest bank closure rate since 1992, when 181 banks closed the year the first President Bush was voted out of office. Seems to be something relating this family to bank closures, doesn’t it? Anyway, Georgia leads the year in bank closures with 20, Illinois is second at 17, and California is third with 10. California is a huge state, though, so it’s easier for them to absorb losses than the other two states.
Unfortunately, it’s not over yet. Since the average is more than 10 banks a month being closed, we’re on pace to have at least 120 banks close before the end of the year. There are no solutions at this time, so we’ll just have to sit back and wait to see who falls and who survives.