I posted yesterday about FDIC lawsuits against directors and officers of two failed Georgia banks.
In both those cases, the FDIC did not file suit until about three years after banks failed, so we should certainly expect to see more such lawsuits.
And, given the number of banks still working under consent orders and other actions, we’ll probably see more Georgia banks shut down. According to the Unofficial Problem Bank List published at Calculated Risk, there are still 60 Georgia banks that are operating under some sort of heightened regulator scrutiny.
But the pace of failures has slowed dramatically. Only 24 banks have failed in the U.S. so far in 2013, and it’s likely that closures are done for the year. Compare that to 51 failures in 2012, 92 in 2011, 157 in 2010, 140 in 2009, and 25 in 2008.
Georgia has led the nation in bank failures with 87 since 2008, but only three Georgia banks failed this year.
Even after the failures and consolidations of recent years, Georgia will have more banks than all but a handful of other states. And we’ll be exiting the banking crisis with a few apparent success stories. Ameris Bank of Moultrie acquired 10 failed banks over the last few years and is now buying The Prosperity Banking Co. in St. Augustine.
I sure don’t expect any serious inquiry this late in the game, but Georgia legislators should analyze the reasons that we had so many more failures than neighboring states. Elected officials with formal ties to problem or failed banks should not participate in those inquiries.
Yes, Florida has had 70 bank failures since 2008, but compare that to the 7 failures in Alabama, the 9 failures in South Carolina, and the 6 failures in Tennessee. Texas has only had 11 failures since 2008. (By the way, I didn’t triple-check all these numbers, so if anyone has corrections, please relay them via the comments.)
Click here for the full list of bank failures since 2000. It’s sortable by date, state, etc.