For the first time in several years, the U.S. went nearly three months without having a bank failure or closure, but on Oct. 2, two financial institutions were shut down by the FDIC.
The Bank of Georgia, located in Peachtree City, GA, and Hometown National Bank, located in Longview, WA. were closed down by the FDIC on Friday, Oct. 2. These bank failures are the first two for the month of October and bring the overall number of bank closures in 2015 to 8.
10/2/2015 *** Washington *** Longview *** Hometown National Bank *** $1.6 million dollar estimated FDIC DIF cost.
10/2/2015 *** Georgia *** Peachtree City *** The Bank of Georgia *** $23.2 million dollar estimated FDIC DIF cost.
The total DIF for failed banks this week is $24.8 million.
If you were banking at The Bank of Georgia in Peachtree City, GA, you are now banking at Fidelity Bank. If you were banking at Hometown National Bank in Longview, WA, you are now banking at Twin City Bank.
For more on the FDIC bank closure lists you can go to the FDIC website and search through their report of failed banks, credit unions, and Trusts.
In 2014, there were a total of 18 banks that went into receivership, merged with another financial institutions, or closed their doors entirely.
Entering 2015, there are around 425 banks and other financial organizations on the troubled list due to mortgages, derivatives, and bad investments.
At the current rate of banks and financial institutions closing their doors so far this year, the estimated total number of failures for 2015 could reach 10.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.