The Canadian Press - ONLINE EDITION

Regulators take over small bank in Oklahoma; Brings US bank failures to 12 in 2014

  • Print

WASHINGTON - Regulators have closed a lender in Oklahoma, bringing U.S. bank failures this year to 12 after 24 closures in all of 2013.

The Federal Deposit Insurance Corp. said Friday that it has taken over Freedom State Bank, based in Freedom, Oklahoma.

The bank, which operated one branch, had about $22.8 million in assets and $20.9 million in deposits.

Alva State Bank & Trust Co. agreed to pay the FDIC a premium of 1 per cent to assume all the deposits of Freedom State Bank. It also agreed to buy roughly $17.7 million of the failed bank's assets.

The failure of Freedom State Bank is expected to cost the deposit insurance fund $5.8 million.

U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.

Only three banks went under in 2007. That jumped to 25 in 2008, after the financial meltdown, and ballooned to 140 in 2009.

In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to 92 in 2011 and fell to 51 in 2012.

In a strong economy, about four or five banks close annually.

From 2008 through 2011, bank failures cost the deposit insurance fund an estimated $88 billion, and the fund fell into the red in 2009. With failures slowing, the fund's balance turned positive in the second quarter of 2011.The fund had a $48.9 billion balance as of March 31.

The FDIC has said it expects bank failures from 2012 through 2016 will cost the fund $10 billion.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Drew Willy says team couldn't get anything going

View more like this

Photo Store Gallery

  • JOE BRYKSA/WINNIPEG FREE PRESS Local-(Standup photo)- A wood duck swims through the water with fall refections in Kildonan Park Thursday afternoon.
  • A Canada goose makes takes flight on Wilkes Ave Friday afternoon- See Bryksa’s 30 Day goose a day challenge- Day 09- May 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should political leaders be highly visible on the front lines of flood fights and other natural disasters?

View Results

View Related Story

Ads by Google