On May 6, the FDIC closed down their third bank for 2016 as First Cornerstone Bank shuttered its doors. This institution is the second bank failure in the past two weeks, with Trust Company Bank being closed down by regulators in on April 29.
This bank failure is also the first for the month of May, and brings the overall number of bank closures in 2016 to 3.
5/6/2016 *** Pennsylvania *** King of Prussia *** First Cornerstone Bank *** $10.8 million dollar estimated FDIC DIF cost.
The total DIF for failed banks this week is $10.8 million.
If you were banking at First Cornerstone Bank in King of Prussia, PA, you are now banking at First-Citizens Bank & Trust Company based out of Raleigh, North Carolina.
For more on the FDIC bank closure lists you can go to the FDIC website and search through their report of failed banks, credit unions, and Trusts.
In 2015, there were a total of 8 banks that went into receivership, merged with another financial institutions, or closed their doors entirely.
Entering 2016, there are around 425 banks and other financial organizations on the troubled list due to mortgages, derivatives, and bad investments.
At the current rate of banks and financial institutions closing their doors so far this year, the estimated total number of failures for 2016 could reach 9.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.