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Bank failures had been relatively rare since the financial crisis of 2008 and 2009, but that all changed last year when First Republic and Silicon Valley Bank both collapsed and sent shockwaves through the banking industry. How do those failures stack up against other major domino falls? And what can you do to make sure you never need to lose any sleep over your bank’s health? Read on to learn about the history of bank failures.
The seven largest bank failures
| Bank name | Bank failure date | Assets* |
|---|
| Washington Mutual Bank | Sept. 25, 2008 | $307 billion |
| First Republic Bank | May 1, 2023 | $212 billion** |
| Silicon Valley Bank | March 10, 2023 | $209 billion** |
| Signature Bank | March 12, 2023 | $110 billion** |
| IndyMac Bank, F.S.B. | July 11, 2008 | $31 billion |
| Colonial Bank | Aug. 14, 2009 | $26 billion |
| First Republic Bank-Dallas, N.A. | July 29, 1998 | $17 billion |
*Assets rounded to nearest billion
**From the Federal Reserve as of Dec. 31, 2022
*** This list only includes failures and does not include banks that were provided assistance.
Bank failures have been uncommon in recent history
During the Great Depression, from 1930 to 1933, more than 9,000 banks failed. The Banking Act of 1933, signed by President Franklin Roosevelt, created the Federal Deposit Insurance Corporation (FDIC).
Bank failures are far less numerous today than they were in the 1930s, but they still occur. From 2001 through 2024, there have been 567 bank failures, according to the FDIC. More than 500 of these bank failures occurred between 2007 and 2014 due to the global financial crisis.
As of July 2024, there has been one bank failure this year: Republic First Bank (Philadelphia), which did business as Republic Bank. This failure occurred in April.
Because bank failures can happen, it’s important to have your money in a FDIC-insured bank or, if opting for a credit union, one that is insured by the National Credit Union Administration (NCUA). It’s also vital to understand how this type of insurance works, including what types of bank accounts are covered (savings, money market accounts, checking accounts and certificates of deposit, or CDs), and what the limitations include.
FDIC insurance is backed by the U.S. government and guarantees bank consumers that their money is safe for up to a limit of $250,000 per depositor, per FDIC-insured bank, per ownership category.
| Number of bank failures | Year | Number of bank failures |
|---|
| 2023 | 5 | 2011 | 92 |
| 2022 | 0 | 2010 | 157 |
| 2021 | 0 | 2009 | 140 |
| 2020 | 4 | 2008 | 25 |
| 2019 | 4 | 2007 | 3 |
| 2018 | 0 | 2006 | 0 |
| 2017 | 8 | 2005 | 0 |
| 2016 | 5 | 2004 | 4 |
| 2015 | 8 | 2003 | 3 |
| 2014 | 18 | 2002 | 11 |
| 2013 | 24 | 2001 | 4 |
| 2012 | 51 | | |
Always make sure your money is FDIC insured
It doesn’t matter whether it’s a year with no bank failures or 2010, with 157 failures — it’s crucial to always make sure your money is at an FDIC-insured bank, within FDIC insurance limits and following the FDIC’s rules. That way, even if you wake up to the surprising news that your bank is closing its doors, you’ll be able to get your money back up to the insured limit.
It’s important to note that credit unions can fail, too. If you’re a member of a credit union, make sure you’re covered by NCUA insurance.
FAQs
Washington Mutual Failure
The collapse of Washington Mutual (WaMu) in 2008 stands out as the largest bank failure in U.S. history, according to the FDIC.
What is the biggest bank failure in US history? ›
Washington Mutual Failure
The collapse of Washington Mutual (WaMu) in 2008 stands out as the largest bank failure in U.S. history, according to the FDIC.
Which banks are collapsing in 2024? ›
The First Bank to Collapse in 2024: What Led to the Failure of Republic Bank. The first bank to meet its demise in 2024 is smaller than its 2023 counterparts. In 2023 we saw Silicon Valley Bank (“SVB”) and First Republic Bank (“First Republic”) fail.
Which banks are in trouble in the USA? ›
List of Recent Failed Banks
| Bank Name | City | Fund |
|---|
| Heartland Tri-State Bank | Elkhart | 10544 |
| First Republic Bank | San Francisco | 10543 |
| Signature Bank | New York | 10540 |
| Silicon Valley Bank | Santa Clara | 10539 |
2 more rowsJun 6, 2024
Failed Bank List
| Bank Name | City | Closing Date |
|---|
| Citizens Bank | Sac City | November 3, 2023 |
| Heartland Tri-State Bank | Elkhart | July 28, 2023 |
| First Republic Bank | San Francisco | May 1, 2023 |
| Signature Bank | New York | March 12, 2023 |
6 more rowsApr 26, 2024
Enjoy complimentary access to top ideas and insights — selected by our editors. Since 2017, 15 banks have failed, with five banks failing in 2023 alone. Republic First Bank's demise on April 26 was the first failure of 2024. Its collapse renewed fears that last year's financial instability is still lingering.
What bank just folded? ›
There has only been one bank failure so far in 2024. Republic First Bank (Philadelphia), which did business as Republic Bank, failed April 26. That was the first Federal Deposit Insurance Corp. (FDIC) bank to fail since Citizens Bank of Sac City, Iowa failed in November 2023.
What is the safest bank in us? ›
Summary: Safest Banks In The U.S. Of September 2024
| Bank | Forbes Advisor Rating | Learn More CTA text |
|---|
| Chase Bank | 5.0 | Learn More |
| Bank of America | 4.2 | |
| Wells Fargo Bank | 4.0 | Learn More |
| Citi® | 4.0 | |
1 more rowAug 30, 2024
One question that often arises is, "Are Credit Unions Safer than Banks?" If you're looking for a short answer, you'll be happy to know that we're not making you read the whole post: Credit Unions and banks are roughly identical in safety because deposits at both are insured by the Federal government to $250,000.
Which three US banks just collapsed? ›
The collapses of Silicon Valley Bank and Signature Bank in March 2023—then the second- and third-largest bank failures in U.S. history—took consumers by surprise. Subsequently, three more banks failed in 2023: First Republic Bank in May, Heartland Tri-State Bank in July and Citizens Bank of Sac City in November.
Lloyds, Halifax and Bank of Scotland to close 237 branches in 2024/25 – here's the full list, plus alternatives. Lloyds, Halifax and Bank of Scotland, which are all part of the Lloyds Banking Group, will shut at least 237 of their bank branches in 2024 and 2025, the Group has confirmed.
Which banks are currently at risk? ›
The banks of greatest concern are Flagstar Bank and Zion Bancorporation, according to the screener. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion. The bank, however, only had $9.3 billion in total equity, making its total CRE exposure 553% of its total equity.
What happens to a loan if the bank fails? ›
If a lender collapses, your loan may be transferred to another institution, but you are still responsible for making payments. To protect yourself, make sure your contact information is up to date, keep copies of your statements, and continue making payments as usual.
What was the biggest financial collapse in the US? ›
The Great Depression of 1929–39
This was the worst financial and economic disaster of the 20th century. Many believe that the Great Depression was triggered by the Wall Street crash of 1929 and later exacerbated by the poor policy decisions of the U.S. government.
What was the first bank too big to fail? ›
Continental Illinois case. An early example of a bank rescued because it was "too big to fail" was the Continental Illinois National Bank and Trust Company during the 1980s.
What big bank collapsed in 2008? ›
In the spring of 2008, the investment bank Bear Stearns was acquired by JPMorgan Chase with the assistance of the Federal Reserve. In September, Lehman Brothers filed for bankruptcy, and the next day the Federal Reserve provided support to AIG, a large insurance and financial services company.
When did the bank of the United States collapse? ›
The Bank of United States, founded by Joseph S. Marcus in 1913 at 77 Delancey Street in New York City, was a New York City bank that failed in 1931.
