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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