Bank closures have slowed considerably through the first three months of 2013 compared to the same period last year, a report on bank closures from SNL Financial, a research firm for the financial services industry. The four banks that have closed so far this year were LaGrange, Ga.-based Frontier Bank with $258 million in assets; Chicago-based Covenant Bank with $58 million in assets; Andover, Minn.-based 1st Regents Bank with $49 million in assets; and University Place, Wash.-based Westside Community Bank with $91 million in assets.
The four closures were a significant drop from last year when 15 banks were closed from Jan. 1 through March 23, according to the report. None of the closures so far this year have involved loss-share agreements. Out of the 51 closures in 2012, 20 involved loss-share agreements with the FDIC, and 58 out of the 92 closures in 2011 involved them as well. The median cost to the deposit insurance fund, according to the report, has been 22% of the failed banks’ assets in 2013, compared to 21% last year and 23% in 2011.