October 3, 2022

Two More Banks Added To The 2010 Bank Failure List

bank savings and loan

Bank failures continue to mount in the U.S. where numbers for 2010 have now surpassed those of 2009. Image by Alex4.

Another two banks have made the dreaded United States bank failure list for 2010. The Federal Deposit Insurance Corporation reported that the Western Commercial Bank of Woodland Hills, California and K Bank of Randallstown, Maryland were both closed by their respective state governing agencies.

The FDIC said that First California Bank of Westlake Village, California will purchase the only branch of Western Commercial Bank. The K Bank has seven branches and will be purchased by Manufacturers and Traders Trust Company, or M&T Bank, of Buffalo, New York.

Both banks will service the depositors of the two failed banks as normal, with the customers becoming depositors of the new banks. The FDIC will continue to insure deposits up to $250,000 per depositor.

With the closure of these two banks, the number of failed banks in 2010 has officially passed last year’s number. In 2009, the U.S. saw 140 bank failures. So far in 2010, 141 banks have ceased operations.

That brings the total to about 300 bank failures since the start of the financial crisis in 2008. The number is well below the crisis involving savings and loan in 1987 thru 1992. Over 1,000 banks went under during that period.

The FDIC has revised its estimates around bank losses. New estimates predict that losses incurred by the fund will be around $52 billion, down from $60 billion, for the period from 2010 to 2014.