The number of bank failures in 2013 stands at 22 as of Oct. 11, compared with 43 as of the same time last year according to new research from SNL Financial.
According to SNL, only three of the 22 bank failures thus far in 2013 have involved a loss-share agreement. In 2012, the FDIC entered loss-share agreements with the buyers of 20 of the 51 closed banks. In 2011, the FDIC entered loss-share agreements with the buyers of 58 of the 92 closed banks. Under a loss-share agreement, the FDIC absorbs a portion of the loss on a specified pool of assets which maximizes asset recoveries and minimizes FDIC losses.
According to SNL data, the 22 failed banks had a total asset size ranging from $20.2 million to $5 billion. The most recent banks to close were Connecticut-based Community's Bank, established in 2001 and Texas-based First National Bank, established in 1934.