Top Buyers of Failed U.S. Banks

When a U.S. bank fails, it is up to the FDIC to ensure the stability of the failed bank's assets and deposits so that customers won't lose out when their bank of choice goes under.

To do this, the FDIC can either arrange for the sale of the failed bank's assets to an existing financial institution or directly pay out the failed bank's deposits, as long as they fall within the FDIC's insurance limits. The former "Purchase and Assumption Method" is most commonly used, but requires the FDIC to find a willing buyer, and often must sell assets at a discount, which may potentially cause billions in losses to the FDIC fund.

Some institutions are repeatedly tapped by the FDIC to buy up assets of failed banks, which can be an attractive situation as the purchasing bank does not necessarily have to buy all of the failed bank's assets and can see their deposits under management increase literally overnight. The rest of the assets are eventually auctioned off by the FDIC.

So, which institutions have bought the most* failed U.S. banks? Click ahead to find out!

By Paul Toscano
Posted 23 Oct 2009
Updated 3 Nov 2009

*Institutions buying the same number of banks are ranked by the size of assets belonging to the failed bank. This number is not necessarily the amount assumed by the purchasing bank.

Headquarters: Raleigh, North Carolina

Failed Banks Purchased: 2
Total Assets: $2.97 billion
Total Deposits: $2.93 billion
Cost to FDIC: $1.19 billion

Georgian Bank (9/25/09)
Venture Bank (9/11/09)

Headquarters: Hamilton, Ohio

Failed Banks Purchased: 2
Total Assets: $3.13 billion
Total Deposits: $2.54 billion
Total Cost to FDIC: $874 million

Irwin Union Bank and Trust (9/18/09)
Irwin Union Bank, F.S.B. (9/18/09)

Headquarters: San Diego, California

Failed Banks Purchased: 2
Total Assets: $3.3 billion
Total Deposits: $2.55 billion
Cost to FDIC: $785 million

Alliance Bank (2/6/09)
Vineyard Bank (7/17/09)

Headquarters: Omaha, Nebraska

Failed Banks Purchased: 2
Total Assets: $3.65 billion
Total Deposits: $3.23 billion
Cost to FDIC: $862 million

First National Bank of Nevada (7/25/08)
First Heritage Bank, NA (7/25/08)

Headquarters: Winston-Salem, North Carolina

Failed Banks Purchased: 2
Total Assets: $25.57 billion
Total Deposits: $20.52 billion
Total Cost to FDIC: $3 billion

Haven Trust Bank (12/12/08)
Colonial Bank (8/14/09)

Headquarters: St. Cloud, Minnesota

Failed Banks Purchased: 4
Total Assets: $681.7 million
Total Deposits: $638.6 million
Total Cost to FDIC: $87 million

Alpha Bank & Trust (10/24/08)
Horizon Bank (6/26/09)
Community National Bank of Sarasota County (8/7/09)
ebank (8/21/09)

Headquarters: Chicago, Illinois

Failed Banks Purchased: 4
Total Assets: $7.79 billion
Total Deposits: $7.72 billion
Total Cost to FDIC: $1.92 billion

Heritage Community Bank (2/27/09)
InBank  (9/4/09)
Platinum Community Bank (9/4/09)
Corus Bank, N.A. (9/11/09)

Headquarters: Pinehurst, Georgia

Failed Banks Purchased: 6
Total Assets: $2.79 billion
Total Deposits: $2.40 billion
Total Cost to FDIC: $1.7 billion

Security Bank of Gwinnett County (7/24/09)
Security Bank of North Fulton (7/24/09)
Security Bank of North Metro (7/24/09)
Security Bank of Bibb County (7/24/09)
Security Bank of Houston County (7/24/09)
Security Bank of Jones County (7/24/09)

Failed Banks: 7*
Total Assets: $378.19 billion
Total Deposits: $236.83 billion
Total Cost to FDIC: $8.15 billion

New Frontier Bank (4/10/09)
Community Bank of Nevada (8/14/09)
Indymac Bank (7/11/08)
Magnet Bank (1/30/09)
First Bank of Beverly Hills (4/24/09)
Community Bank of West Georgia (6/26/09)
FirstCity Bank (3/18/09)

*Over the past two years, the FDIC has either used its Deposit Insurance National Bank (an entity created by the FDIC) or directly paid out deposits of a failed institution when no buyer existed to assume the assets of a failed bank. This list represents these situations.

Headquarters: Minneapolis, Minn.

Failed Banks Purchased: 12
Total Assets: $36.39 billion
Total Deposits: $27.87 billion
Total Cost to FDIC: $4.79 billion

Downey Savings & Loan (11/21/08)
PFF Bank & Trust (11/21/08)
First Bank of Idaho (4/24/09)
Community Bank of Lemont (10/30/09)
San Diego National Bank (10/30/09)
California National Bank (10/30/09)
Pacific National Bank (10/30/09)
Park National Bank (10/30/09)
Citizens National Bank (10/30/09)
Madisonville State Bank (10/30/09)
North Houston Bank (10/30/09)
First Bank of Oak Park (10/30/09)