Eleven banks have already failed so far this year, according to the Federal Deposit Insurance Corp. (FDIC).
Last Friday, four banks faced the axe, as the global financial crisis from 2008 continues to loom over smaller financial institutions which did not get federal bailout money and suffer under piles of bad debt, exacerbated by falling housing prices, surging loan defaults and still-high joblessness.
A total of 157 banks failed in 2010, 140 in 2009 and only 25 in 2008, according to FDIC.
The FDIC insures deposits in almost 8,000 banks and savings associations in the country. When a bank fails the FDIC reimburses deposits of up to $250,000 per account. The pace of bank collapses in placing a strain on its finances.
As of Sept. 30, 2010, the FDIC fund had a deficit of $8 billion despite adding $7.2 billion during the quarter.
The four banks which were padlocked Friday:
The First State Bank, based in Camargo, Okla. with total assets of about $43.5 million and total deposits of about $40.3 million as of Sept. 30, 2010.
Evergreen State Bank, based in Stoughton, Wisc., with about $246.5 million in total assets and $195.2 million in total deposits as of Sept. 30, 2010.
Firs Tier Bank, based in Louisville, Colo., with total assets of about $781.5 million and total deposits of about $722.8 million as of Sept. 30, 2010.
First Community Bank, based in Taos, N.M., with total assets of about $2.31 billion and total deposits of about $1.94 billion as of Sept. 30, 2010.