A total of over 77 banks have closed in 2009 and counting. According to Dick (Richard Bove), a financial analyst for Rochdale Securities who has been the securities business since 1965 another 150 to 200 banks fail. In 2008, he was ranked by Zacks as the top financial analyst in the country.
He created a list called Bove's List which I talked about in my blog on July 20, 2008 entitled, "Check to See if Your Bank is on Bove's List". Some of the banks listed in his March 2008 report have closed or are still in financial trouble. Bove has identified 8 banks that he likes. The banks are: Bank of NY Mellon, Northern Trust, State Street, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JP Chase Morgan.
As a comparison, in 1987, the FDIC listed 1,575 problem banks and more than 10% of the banks were on the FDIC problem list. In 1987, 184 banks failed. The FDIC reports that number of troubled banks 252, soared during the fourth quarter of 2008 to the highest level since 1994.
BankUnited FSB is the largest bank failure in 2009 in terms of the percentage loss on failed bank’s assets. The two previous largest bank failures in the history of banking, in terms of loss to the FDIC, were Indy Mac Bank in July 2008 and American S&L in September 1988.
According to a Global Finance banks across the world were ranked. In the study 50 of the world's safest banks are identified. One bank in the US was listed in the top 20, Bank of NY Mellon (BK). Wells Fargo was also listed in the top 50 and in another report was listed as the best consumer internet bank. Other banks listed in the top 50 safest banks were US Bancorp and BB&T.
Here are 4 tips to help you research your bank's health.
1. If you bank has closed check the FDIC website to see if it is FDIC insured.
2. Move at least some of your money to a credit union or a smaller bank or banks such as PNC or BB&T that did not invest in the sub-prime mortgage loans.
3. Do research on your current banks and look at the earnings over the past two to three years as well as the number of branches that have closed.
4. Put your money in more than one bank. As your grandmother used to say "never leave all your eggs in one basket."
The following banks closed in 2009.
Guaranty Bank
CapitalSouth Bank
First Coweta Bank
ebank
Community Bank of Nevada
Community Bank of Arizona
Union Bank, National Association
Colonial Bank
Dwelling House Savings and Loan Association
Community First Bank
Community National Bank of Sarasota County
First State Bank
Mutual Bank
First BankAmericano
Peoples Community Bank
Integrity Bank
First State Bank of Altus
Security Bank of Jones County
Security Bank of Houston County
Security Bank of Bibb County
Security Bank of North Metro
Security Bank of North Fulton
Security Bank of Gwinnett County
Waterford Village Bank
Temecula Valley Bank
Vineyard Bank
BankFirst
First Piedmont Bank
Bank of Wyoming
Founders Bank
Millennium State Bank of Texas
First National Bank of Danville
Elizabeth State Bank
Rock River Bank
First State Bank of Winchester
John Warner Bank
Mirae Bank
MetroPacific Bank
Horizon Bank
Neighborhood Community Bank
Community Bank of West Georgia
First National Bank of Anthony
Cooperative Bank
Southern Community Bank
Bank of Lincolnwood
Citizens National Bank
Strategic Capital Bank
BankUnited, FSB
Westsound Bank
America West Bank
Citizens Community Bank
Silverton Bank, NA
First Bank of Idaho
First Bank of Beverly Hills
Michigan Heritage Bank
American Southern Bank
Great Basin Bank of Nevada
American Sterling Bank
New Frontier Bank
Cape Fear Bank
Omni National Bank
TeamBank, NA
Colorado National Bank
FirstCity Bank
Freedom Bank of Georgia
Security Savings Bank
Heritage Community Bank
Silver Falls Bank
Pinnacle Bank of Oregon
Corn Belt Bank & Trust Co.
Riverside Bank of the Gulf Coast
Sherman County Bank
County Bank
Alliance Bank
FirstBank Financial Services
Ocala National Bank
Suburban FSB
MagnetBank
1st Centennial Bank
Bank of Clark County
National Bank of Commerce
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