Bank Failures in Brief – 2024 (2024)

FAQs

What banks are collapsing in 2024? ›

Republic First Bank failed on April 26, 2024. Citizens Bank of Sac City, Iowa, failed on November 3, 2023. Heartland Tri-State Bank failed on July 28, 2023.

More US regional bank failures could be on the way thanks to what Pacific Investment Management warns is a “very high” concentration of troubled commercial real estate loans on their books. “The real wave of distress is just starting” for lenders to everything from malls to offices, says Pimco's John Murray.

If your bank closes, the FDIC will either try to move your money to another bank in good standing or mail you a check for up to the insured amount. If it doesn't move your money, the bank should mail you a check within two business days of closing.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

Consulting firm Klaros Group analyzed about 4,000 U.S. banks and found 282 banks face the dual threat of commercial real estate loans and potential losses tied to higher interest rates. The majority of those banks are smaller lenders with less than $10 billion in assets.

As a result, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank. Signature Bank and First Republic Bank collapsed for similar reasons as Silicon Valley Bank. Notably, all three banks had many customers with uninsured deposits.

Why are banks failing all of a sudden? ›

It stemmed from the bank's risky mortgage lending practices. Even more recently were the failures of Silicon Valley Bank and Signature Bank in 2023. These niche banks with large amounts of uninsured deposits have led federal regulators to look at additional regulatory practices to help keep financial systems stable.

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

If your bank fails, up to $250,000 of deposited money (per person, per account ownership type) is protected by the FDIC. When banks fail, the most common outcome is that another bank takes over the assets and your accounts are simply transferred over. If not, the FDIC will pay you out.

Those include high-yield savings accounts, money-market funds, certificates of deposit and short-term Treasurys. All of those are boasting interest rates around 3% to 5%. These accounts typically pay interest rates that adjust with those set by the Federal Reserve—or around 3% to 4% right now.

The collapse of Washington Mutual (WaMu) in 2008 stands out as the largest bank failure in U.S. history, according to the FDIC. When regulators seized it, WaMu had more than $300 billion in assets and $188 billion in deposits, making it the sixth-largest U.S. bank.

FDIC Problem Bank List is a confidential list, published by the Federal Deposit Insurance Corporation (FDIC) every quarter, of U.S. banks and thrifts that are on the brink of financial insolvency.

Bank of America's Financial Health

In recent years, Bank of America's financial performance has been relatively stable. In 2022, the bank reported a net income of $20.4 billion, a decrease from the previous year's $27.4 billion. However, its revenue increased from $91.2 billion in 2021 to $95.2 billion in 2022.