Health of smaller banks still a worry

A Wisconsin bank was hit by losses and took money from the TARP program. Now they are laying off. Marshall & Ilsley Corp., Wisconsin’s largest bank, is cutting 830 jobs and slashing its dividend after posting a fourth-quarter net loss on borrower defaults. The stock dropped 18 percent in early trading.

The health of smaller local and regional banks is a concern as larger banks may not be willing to buy smaller banks. Of course if banks fail, the FDIC assigns assets to another bank. We are not saying Marshall & Ilsley is in that situation by any means.

Here is a list of banks that failed in 2008, and there are some big names on the list:

Sanderson State Bank, Sanderson, TX December 12, 2008
Haven Trust Bank, Duluth, GA December 12, 2008
First Georgia Community Bank, Jackson, GA December 5, 2008
PFF Bank and Trust, Pomona, CA November 21, 2008
Downey Savings and Loan, Newport Beach, CA November 21, 2008
The Community Bank, Loganville, GA November 21, 2008
Security Pacific Bank, Los Angeles, CA November 7, 2008
Franklin Bank, SSB, Houston, TX November 7, 2008
Freedom Bank, Bradenton, FL October 31, 2008
Alpha Bank & Trust, Alpharetta, GA October 24, 2008
Meridian Bank, Eldred, IL October 10, 2008
Main Street Bank, Northville, MI October 10, 2008
Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT September 25, 2008
Ameribank, Northfork, WV September 19, 2008
Silver State Bank, Henderson, NV September 5, 2008
Integrity Bank, Alpharetta, GA August 29, 2008
The Columbian Bank and Trust, Topeka, KS August 22, 2008
First Priority Bank, Bradenton, FL August 1, 2008
First Heritage Bank, NA, Newport Beach, CA July 25, 2008
First National Bank of Nevada, Reno, NV July 25, 2008
IndyMac Bank, Pasadena, CA July 11, 2008
First Integrity Bank, NA, Staples, MN May 30, 2008
ANB Financial, NA, Bentonville, AR May 9, 2008
Hume Bank, Hume, MO March 7, 2008
Douglass National Bank, Kansas City, MO January 25, 2008