FDIC UPDATE: Lucky Sevens Ends the 17 Month FDIC DIF Cost Pattern

By Cal Okie
November 2, 2011 – 22:30 ET

Lucky Sevens Ends the 17 Month FDIC DIF Cost Pattern
The FDIC DIF cost for October 2011 totaled an estimated 776.7 million dollars. Rounded out to the nearest million dollars we get 777 million dollars (lucky sevens?).  This total ends the well established 17 month DIF cost pattern. If the pattern would of held this month, we should have seen DIF cost between 1.1 – 1.3 billion dollars.
So what’s next? We will just have to wait and see.
What have we learned in the past seventeen months?
  • The too big to fail bar for banks has been lowered.
  • The FDIC knows how to stay on a tight budget.
Here is my evidence that the too big to fail bar has been lowered. On April 30th 2010 the FDIC got hammered by large DIF cost. Since that day, the too big to fail bar has been lowered.
The list below shows the last group of weekly closures by the FDIC prior to the 17 month pattern. That Friday there were five closures. Three of those cost the FDIC over 1 billion dollars each.
DATE
STATE
CITY
BANK NAME
COST IN MILLIONS
4/30/10
MO
Butler
BC National Banks
11.4
4/30/10
PR
San Juan
Eurobank
743.9
4/30/10
PR
Hato Rey
R-G Premier Bank of Puerto Rico
1,230.0
4/30/10
PR
Mayaguez
Westernbank Puerto Rico
3,310.0
4/30/10
WA
Everett
Frontier Bank
1,370.0
Since that day we have not seen a single bank failures which has cost the FDIC over 1 billion dollars. As a matter of fact, the largest single bank failure had an estimated DIF cost of 406.9 million dollars. See list below.
DATE
STATE
BANK NAME
COST IN MILLIONS
10/15/10
MO
Premier Bank
406.9
8/20/10
IL
ShoreBank
367.7
10/22/10
KS
Hillcrest Bank
329.7
1/21/11
CO
United Western Bank
312.8
4/29/11
GA
The Park Avenue Bank
306.1
6/4/10
NE
TierOne Bank
297.6
8/19/11
FL
Lydian Private Bank
293.2
7/8/11
IL
First Chicago Bank & Trust
284.3
7/8/11
CO
Colorado Capital Bank
283.8
5/20/11
GA
Atlantic Southern Bank
273.5
9/23/11
VA
Bank of the Commonwealth
268.3
1/28/11
NM
First Community Bank
260
4/15/11
AL
Superior Bank
259.6
1/28/11
CO
FirsTier Bank
242.6
7/23/10
GA
Crescent Bank and Trust Company
242.4
10/21/11
CO
Community Banks of Colorado
224.9
5/14/10
IL
Midwest Bank and Trust Company
216.4
7/22/11
CO
Bank of Choice
213.6
11/5/10
MD
K Bank
198.4
6/25/10
FL
Peninsula Bank
194.8
4/29/11
MI
Community Central Bank
183.2
4/15/11
AL
Nexity Bank
175.4
7/29/11
IN
Integra Bank National Association
170.7
6/11/10
WA
Washington First International Bank
158.4
5/20/11
GA
First Georgia Banking Company
156.5
11/19/10
WI
First Banking Center
142.6
11/12/10
GA
Darby Bank & Trust Co.
136.2
8/5/11
WA
Bank of Whitman
134.8
10/7/11
MO
Sun Security Bank
118.3
8/12/11
KS
The First National Bank of Olathe
116.6
7/30/10
OR
LibertyBank
115.3
7/16/10
SC
Woodlands Bank
115
10/1/10
FL
Wakulla Bank
113.4
9/17/10
GA
The Peoples Bank
98.9
5/28/10
NV
Sun West Bank
96.7
2/18/11
CA
San Luis Trust Bank FSB
96.1
7/30/10
FL
Coastal Community Bank
94.5
4/29/11
GA
First Choice Community Bank
92.4
5/28/10
FL
Bank of Florida – Southwest
91.3
2/18/11
GA
Habersham Bank
90.3
12/10/10
MI
Paramount Bank
90.2
5/7/10
CA
1st Pacific Bank of California
87.7
2/11/11
MI
Peoples State Bank
87.4
9/17/10
WI
Maritime Savings Bank
83.6
9/24/10
FL
Haven Trust Bank Florida
83.6
10/15/10
KS
Security Savings Bank, F.S.B.
82.2
6/18/10
NV
Nevada Security Bank
80.9
1/14/11
GA
Oglethorpe Bank
80.4
6/17/11
GA
McIntosh State Bank
80
5/7/10
FL
The Bank of Bonifay
78.7
7/9/10
OK
Home National Bank
78.7
1/7/11
FL
First Commercial Bank of Florida
78
7/16/10
SC
First National Bank of the South
74.9
7/23/10
NV
SouthwestUSA Bank
74.1
9/24/10
WA
North County Bank
72.8
8/13/10
IL
Palos Bank and Trust Company
72
10/14/11
GA
Piedmont Community Bank
71.6
2/4/11
GA
American Trust Bank
71.5
5/28/10
FL
Bank of Florida – Southeast
71.4
9/17/10
GA
First Commerce Community Bank
71.4
10/7/11
MN
The RiverBank
71.4
4/15/11
GA
Bartow County Bank
69.5
6/25/10
GA
First National Bank
68.9
7/30/10
WA
The Cowlitz Bank
68.9
8/6/10
IL
Ravenswood Bank
68.1
7/16/10
FL
Metro Bank of Dade County
67.6
7/9/10
NY
USA Bank
67.1
10/14/11
IL
Country Bank
66.3
7/15/11
GA
High Trust Bank
66
7/29/11
SC
BankMeridian N.A.
65.4
10/21/11
GA
Community Capital Bank
62
2/18/11
GA
Citizens Bank of Effingham
59.4
9/10/10
FL
Horizon Bank
58.9
1/21/11
NC
The Bank of Asheville
56.2
9/17/10
GA
Bank of Ellijay
55.2
9/30/11
TX
First International Bank
53.8
4/15/11
MS
Heritage Banking Group
49.1
9/9/11
FL
First National Bank of Florida
46.9
1/21/11
SC
CommunitySouth Bank & Trust
46.3
10/14/11
NJ
First State Bank
45.8
7/23/10
FL
Sterling Bank
45.5
7/15/11
GA
One Georgia Bank
44.4
9/2/11
GA
Patriot Bank of Georgia
44.4
11/12/10
AZ
Copper Star Bank
43.6
3/11/11
WI
Legacy Bank
43.5
4/29/11
FL
First National Bank of Central Florida
42.9
11/19/10
FL
Gulf State Community Bank
42.7
3/25/11
IL
The Bank of Commerce
41.9
5/7/10
AZ
Towne Bank of Arizona
41.8
10/1/10
WA
Shoreline Bank
41.4
6/24/11
GA
Mountain Heritage Bank
41.1
5/28/10
FL
Bank of Florida – Tampa
40.3
7/30/10
GA
Northwest Bank & Trust
39.8
1/21/11
GA
Enterprise Banking Company
39.6
8/19/11
GA
First Southern National Bank
39.6
10/21/11
FL
Old Harbor Bank
39.3
10/14/11
NC
Blue Ridge Savings Bank, Inc
38
9/23/11
CA
Citizens Bank of Northern California
37.2
7/23/10
OR
Home Valley Bank
37.1
6/3/11
SC
Atlantic Bank and Trust
36.4
2/4/11
GA
North Georgia Bank
35.2
5/27/11
WA
First Heritage Bank
34.9
7/16/10
FL
Turnberry Bank
34.4
7/22/11
FL
LandMark Bank of Florida
34.4
10/22/10
GA
The First National Bank of Barnesville
33.9
10/22/10
AZ
First Arizona Savings, AFSB
32.8
8/20/10
CA
Pacific State Bank
32.6
10/21/11
GA
Decatur First Bank
32.6
4/8/11
NV
Nevada Commerce Bank
31.9
7/16/10
FL
Olde Cypress Community Bank
31.5
10/22/10
IL
First Suburban National Bank
31.4
5/14/10
GA
Satilla Community Bank
31.3
4/8/11
IL
Western Springs National Bank and Trust
31
8/19/11
IL
First Choice Bank
31
4/15/11
GA
New Horizons Bank
30.9
2/11/11
FL
Sunshine State Community Bank
30
5/14/10
MO
Southwest Community Bank
29
6/17/11
FL
First Commercial Bank of Tampa Bay
28.5
1/7/11
AZ
Legacy Bank
27.9
9/2/11
GA
CreekSide Bank
27.3
3/11/11
OK
First National Bank of Davis
26.5
8/5/11
IL
Bank of Shorewood
25.6
11/5/10
CA
Western Commercial Bank
25.2
5/14/10
MI
New Liberty Bank
25
10/22/10
FL
Progress Bank of Florida
25
11/12/10
GA
Tifton Banking Company
24.6
9/17/10
NJ
ISN Bank
23.9
8/20/10
FL
Independent National Bank
23.2
12/10/10
PA
Earthstar Bank
22.9
1/28/11
WI
Evergreen State Bank
22.8
2/25/11
IL
Valley Community Bank
22.8
7/8/11
CO
Signature Bank
22.3
2/18/11
CA
Charter Oak Bank
21.8
11/5/10
WA
Pierce Commercial Bank
21.3
6/25/10
NM
High Desert State Bank
20.9
1/28/11
OK
The First State Bank
20.1
10/15/10
MO
WestBridge Bank and Trust Company
18.7
7/23/10
MN
Community Security Bank
18.6
4/29/11
FL
Cortez Community Bank
18.6
2/11/11
WI
Badger State Bank
17.5
7/9/10
MD
Bay National Bank
17.4
8/20/10
CA
Butte Community Bank
17.4
5/28/10
CA
Granite Community Bank, NA
17.3
7/29/11
VA
Virginia Business Bank
17.3
7/30/10
FL
Bayside Savings Bank
16.2
10/22/10
FL
First Bank of Jacksonville
16.2
5/20/11
WA
Summit Bank
15.7
9/17/10
OH
Bramble Savings Bank
14.6
11/19/10
PA
Allegiance Bank of North America
14.2
5/6/11
FL
Coastal Bank
13.4
6/4/10
MS
First National Bank
12.6
2/4/11
IL
Community First Bank Chicago
11.7
7/16/10
MI
Mainstreet Savings Bank, FSB
11.4
7/15/11
AZ
Summit Bank
11.3
8/18/11
PA
Public Savings Bank
11
8/20/10
FL
Community National Bank at Bartow
10.3
8/20/10
CA
Sonoma Valley Bank
10.1
2/11/11
CA
Canyon National Bank
10
11/5/10
CA
First Vietnamese American Bank
9.6
10/22/10
GA
The Gordon Bank
9
7/23/10
SC
Williamsburg First National Bank
8.8
8/20/10
CA
Los Padres Bank
8.7
7/22/11
FL
Southshore Community Bank
8.3
7/15/11
FL
First Peoples Bank
7.4
10/28/11
IL
All American Bank
6.5
5/21/10
MN
Pinehurst Bank
6
5/7/10
MN
Access Bank
5.5
7/23/10
KS
Thunder Bank
4.5
4/15/11
MN
Rosemount National Bank
3.6
8/20/10
VA
Imperial Savings and Loan Association
3.5
6/4/10
IL
Arcola Homestead Savings Bank
3.2
7/9/10
MD
Ideal Federal Savings Bank
2.1
As I said earlier, we will have to wait and see what happens next. It has sure been a long … long time since we have seen a large bank failure. Are we overdue for one or many to happen, or are things getting just better?
You decide.
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