This is the list of links to IRA's failed banks forensics pages for the banks that were closed by the FDIC in January 2010. These pages are part of our ongoing studies to understand the nature and sensitivities surrounding bank risk. We share them here so other researchers can also ponder the "patterns in the noise".
Columbia River Bank - The Dalles, OR 1-22-2010
Evergreen Bank - Seattle, WA 1-22-2010
Charter Bank - Santa Fe, NM 1-22-2010
Bank of Leeton - Leeton, MO 1-22-2010
Premier American Bank - Miami, FL 1-22-2010
Town Community Bank & Trust - Antioch, IL 1-15-2010
St. Stephen State Bank - St. Stephen, MN 1-15-2010
Barnes Banking Company - Kaysville, UT 1-15-2010
Horizon Bank - Bellingham, WA 1-8-2010
Sunday, January 24, 2010
Wednesday, January 13, 2010
First Bank Closure of 2010
On January 8, 2010 the FDIC failed Horizon Bank in Bellingham, Washington. Here is the forensic page for this bank.
Horizon Bank
Note from the data that the first indications this bank was in trouble was in early 2008. At the end of 2007, the bank's Federal Home Loan Bank (FHLB) advances exceeded the 15% maximum and crossed into territory the FDIC considers to be a Moral Hazard. One quarter later(in March 2008), the lending default rate went from 1.6 basis points to 26.1 basis points. A basis point is 1/100th of 1 percent.
The track record of the next two years shows things worsening progressively finally resulting in the first FDIC closure of 2010.
Horizon Bank
Note from the data that the first indications this bank was in trouble was in early 2008. At the end of 2007, the bank's Federal Home Loan Bank (FHLB) advances exceeded the 15% maximum and crossed into territory the FDIC considers to be a Moral Hazard. One quarter later(in March 2008), the lending default rate went from 1.6 basis points to 26.1 basis points. A basis point is 1/100th of 1 percent.
The track record of the next two years shows things worsening progressively finally resulting in the first FDIC closure of 2010.
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