Both Premier Bank and Covenant Bank and Trust of Rock Springs, Georgia, were closed by regulators late last week putting the total number of bank failures in 2012 at 15. If these are the last banks to fail for the month of March we’ll be looking at a total of 60 for the year at our current Q1 pace. This is a far cry from 2009 and 2010 when we saw a total of 140 and 157 failures respectively for those years – and nearly 35 percent lower than last years number of 92.
Covenant Bank and Trust was a small community based bank with just two branches and according to MyBankTracker.com, the FDIC found a buyer for the bank’s assets in Stearns Bank, of St. Cloud, Minnesota. Convenant Bank controlled assets of just $95.7 million and had only $90.6 million in deposits within their two Minnesota locations.
As for Premier Bank of Wilmette, Illinois, the FDIC brokered a deal with International Bank of Chicago to buy the assets and assume the deposits of the failed bank. Premier bank also had just two branches in Wilmette and Chicago, IL and the Bank of Chicago is expected to open these branches under their brand sometime this week.
Recent History Lesson on Failed US Banks:
The US has had to deal with a number of bank failures throughout it’s history. Below is the top 10 list of the largest number of bank failures by year (recent history only):
1) 1989 - 534
2) 1988 - 470
3) 1990 - 382
4) 1991 - 271
5) 1987 - 262
6) 1986 - 204
7) 1992 - 181
8) 1985 - 180
9) 2010 - 157
10) 2009 - 140