Bank Failures Are Shockingly More Common Than You Think, Here’s 23 In Minnesota In Recent Years
There's been some panic and fear after two banks made national news after they failed. First, Silicon Valley Bank failed. Next, customers of Signature Bank were spooked and started withdrawing their deposits. It became the third-biggest bank collapse in history.
It's called a bank run, where customers panic and try to withdraw all of their money. The problem is when everyone tries to withdraw their money, the bank doesn't have all of it in liquified assets. Remember that scene in "It's A Wonderful Life?" George does a pretty good job explaining it.
I knew there were some banks that collapsed during the 2008 recession and the following years, but I had no idea there were so many. The Federal Deposit Insurance Corporation (FDIC) actually has a list of bank failures since October 1, 2001. 23 Banks from Minnesota have failed, many of them outside of the recession.
So what exactly is a bank failure? The FDIC describes it as the closing of a bank by a federal or state banking regulatory agency. It happens when a bank is unable to meet its obligations to depositors and others.
The good news is that if a bank fails and they are insured by the FDIC, you won't lose your money up to the insured limit. That's $250,000 per depositor, per insured bank.
Graph Of Bank Closures Federally Since 2001
List of Banks That Have Failed In Minnesota Since 2000
- First Integrity Bank, NA Staples - May 30, 2008
- Horizon Bank, Pine City - June 26, 2009
- Mainstreet Bank, Forest Lake - August 28, 2009
- Brickwell Community Bank, Woodbury - September 11, 2009
- Jennings State Bank, Spring Grove - October 2, 2009
- Riverview Community Bank - Otsego - October 23, 2009
- Prosper Bank, Oakdale - November 6, 2009
- St. Stephen State Bank, St. Stephen - January 15, 2010
- Marshall Bank, N.A., Hallock - February 5, 2010
- 1st American State Bank of Minnesota, Hancock - February 5, 2010
- State Bank of Aurora, Aurora - March 19, 2010
- Access Bank, Champlin - May 7, 2010
- Pinehurst Bank, St. Paul - May 21,2010
- Community National Bank, Lino Lakes - December 17, 2010
- Rosemount National Bank, Rosemount - April 15, 2011
- The RiverBank, Wyoming - October 7, 2011
- Patriot Bank Minnesota, Forest Lake -January 27, 2012
- Home Savings Of America - Little Falls - February 24, 2012
- Inter Savings Bank, Maple Grove - April 27, 2012
- First Commercial Bank, Bloomington - September 7, 2012
- 1st Regents Bank, Andover - January 18, 2013
- Northern Star Bank, Mankato - December 19, 2014
You can find specific information on each closing and which institution acquired these banks from the FDIC website.
I was a little surprised to see the first bank I ever had an account with had failed back in 2010. When I was a little kid my mom set me up with a savings account at the State Bank Of Aurora, where I was born. It was acquired by the Northern State Bank, which is still in operation today.
Did you bank at any of these places?