After checking the FDIC bank failure list, I met with some friends and ate, drank, and was merry. Before heading to bed, I checked the site again. Another bank failed. Bank of Clark County in Vancouver, WA failed. From the Press Release:

As of January 13, 2009, Bank of Clark County had total assets of $446.5 million and total deposits of $366.5 million. At the time of closing, there were approximately $39.3 million in uninsured deposits held in approximately 138 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

I expect more bank failures in 2009 than 2008. This is for a number of reasons. First, additional damage to the economy will become evident (this is damage that was done during the credit bubble). Second, local (smaller) banks will fail when commercial real estate problems worsen. Third, I expect the government will let the smaller banks fail with greater frequency. Survival of the fittest only applies if you don’t have enough money to properly bribe the government.