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FDIC calls bank closures a short term ill but closure rates remain high

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In 2007, the FDIC seized only 3 banks, in 2008 they shut down 25, and in 2009, 130 banks failed! We’re only finishing out the second quarter of 2010 and 86 banks have already been seized. Florida, Georgia and Illinois have been hit the hardest so far this year, accounting for a combined 44% of all bank closings.

We predicted that at the acceleration rate over 2009 that 2010 would experience 178 closed banks and so far, we’re still on track for 2010 to see as many bank closures as 2007, 2008 and 2009 combined.

In the first quarter, it was said that the FDIC sees bank closures as a “short term problem,” yet each quarter this year has seen 43 bank closures each – that’s 88% more bank closures per quarter so far than the entire year of 2008 saw.

Below are heat maps comparing the quarters- the lighter the state, the fewer bank closings:




Q2 Closings:

To see all banks that closed in the first quarter click here. Below are all of the second quarter FDIC seizures:

  1. 04/09- Beach First National Bank, Myrtle Beach, SC
  2. 04/16- City Bank, Lynnwood, WA
  3. 04/16- Lakeside Community Bank, Sterling Heights, MI
  4. 04/16- First Federal Bank of North Florida, Palatka, FL
  5. 04/16- AmericanFirst Bank, Clermont, FL
  6. 04/16- Riverside National Bank of Florida, Fort Pierce, FL
  7. 04/16- Butler Bank, Lowell, MA
  8. 04/16- Innoavtive Bank, Oakland, CA
  9. 04/16- Tamalpais Bank, San Rafael, CA
  10. 04/23- Peotone Bank & Trust, Peotone, IL
  11. 04/23- Wheatland Bank, Naperville, IL
  12. 04/23- Amcore Bank, Rockford, IL
  13. 04/23- Broadway Bank, Chicago, IL
  14. 04/23- Citizens Bank & Trust, Chicago, IL
  15. 04/23- New Century Bank, Chicago, IL
  16. 04/23- Lincoln Park Savings Bank, Chicago
  17. 04/30- Champion Bank, Creve Coeur, MO
  18. 04/30- Frontier Bank, Everett, WA
  19. 04/30- BC National Banks, Butler, MO
  20. 04/30- CF Bancorp, Port Huron, MI
  21. 05/07- Access Bank, Champlin, MN
  22. 05/07- Towne Bank of Arizona, Mesa, AZ
  23. 05/07- 1st Pacific Bank of California, San Diego, CA
  24. 05/07- The Bank of Bonifay, Bonifay, FL
  25. 05/14- Midwest Bank & Trust, Elmwood Park, IL
  26. 05/14- New Liberty Bank, Plymouth, MI
  27. 05/14- Southwest Community Bank, Springfield, MO
  28. 05/14- Satilla Community Bank, Saint Marys, GA
  29. 05/21- Pinehurst Bank, Saint Paul, MN
  30. 05/28- Sun West bank, Las Vegas, NV
  31. 05/28- Bank of Florida- Tampa, Tampa, FL
  32. 05/28- Bank of Florida- Southwest, Naples, FL
  33. 05/28- Granite Community Bank, Granite Bay, CA
  34. 05/28- Bank of Floriday- Southwest, Fort Lauderdale, FL
  35. 06/04- TierOne Bank, Lincoln, NE
  36. 06/04- Arcola Homestead Savings Bank, Arcola, IL
  37. 06/04- First National Bank, Rosedale, MS
  38. 06/11- Washington First International Bank, Seattle, WA
  39. 06/18- Nevada Security Bank, Reno, NV
  40. 06/25- High Desert State Bank, Albuquerque, NM
  41. 06/25- Peninsula Bank, Englewood, FL
  42. 06/25- First National Bank, Savannah, GA

Bank closures continue to be a tricky economic health indicator, but we monitor closely not only how the real estate sector is performing but how lending is impacted over time.

Forecasting bank closures is tricky, but we are sitting at a steady pace currently for local banks to continue their fall. Perhaps the big box banks that got bailouts will scoop up the smaller banks. There are many political angles to take when it comes to bank closures and bailouts- let’s hear your take in the comments.

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14 Comments

14 Comments

  1. Real Estate Feeds

    July 7, 2010 at 8:08 pm

    FDIC calls bank closures a short term ill but closure rates remain high: In 2007, the FDIC siezed only 3 banks, in… https://bit.ly/d13Veb

  2. kristin terry

    July 7, 2010 at 8:19 pm

    FDIC calls bank closures a short term ill but closure rates remain high: In 2007, the FDIC siezed only 3 banks, in… https://bit.ly/cYutzu

  3. RealEstate Babble

    July 7, 2010 at 8:45 pm

    AgentGenius: FDIC calls bank closures a short term ill but closure rates remain high https://bit.ly/aavH3L Full https://bit.ly/d14ppJ

  4. Michele

    July 7, 2010 at 10:48 pm

    FDIC calls bank closures a short term ill but closure rates remain high: https://bit.ly/8YGyvx via @addthis

  5. MetroBrokersTV

    July 8, 2010 at 12:30 am

    FDIC calls bank closures a short term ill but closure rates remain high https://ow.ly/182FUo

  6. Natasha Hall

    July 8, 2010 at 12:42 am

    FDIC calls bank closures a short term ill but closure rates remain high https://ow.ly/182CD3

  7. Property Marbella

    July 8, 2010 at 5:44 am

    Bank closing and foreclosure together with short sale goes hand in hand. The four biggest foreclosure states are Florida, California, Nevada and Arizona; they stand together for over 50% of foreclosure. So look at the bank closed map again and you know where the next banks are going down.

  8. Joe Loomer

    July 8, 2010 at 3:47 pm

    More bank data – my head hurts.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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