It’s been a while since I’ve made one of these posts. I’ve been taking Fridays off. The FDIC has not. This Friday, four banks were added to the FDIC Failed Bank List:

1. Centennial Bank, Ogden, UT - $205.1 million in total deposits and an estimated hit to the Deposit Insurance Fund (DIF) of $96.3 million. This is a true closing, with the FDIC authorizing a payout of insured deposits. The FDIC estimates the bank had $1.8 million in uninsured deposits. There will be some unhappy customers.

2. Waterfield Bank, Germantown, MD - $156.4 million in deposits and an estimated hit to the DIF of $51.0 million. The FDIC created a new bank to ease the transition of assets to other banks.

3. Bank of Illinois, Normal, IL - $198.5 million in total deposits and an estimated hit to the DIF of $53.7 million. The FDIC entered into a loss-share agreement with Heartland Bank and Trust Company of Bloomington, Illinois on $166.6 million of Bank of Illinois’s assets.

4. Sun American Bank, Boca Raton, FL - $443.5 million in total deposits and an estimated hit to the DIF of $103.8 million. The FDIC entered into a loss-share agreement with First-Citizens Bank & Trust Company of Raleigh, North Carolina on $433.0 million of Sun American Bank’s assets.

26 banks have failed this year. Based on the actions of regulators, including the hiring of additional FDIC closing teams, bank failures are expected to increase substantially before the end of the year. The DIF has a negative balance (but this includes losses that have yet to be paid out. Cash still exists). Banks have already paid their insurance premiums for the next several quarters. The FDIC will be forced to tap their line of credit at the Treasury, it is only a matter of time.