Areas of Concern
December 13, 2011 3:52 PM
State: Georgia<br>Number of failures: 74 (2008-present)
Georgia, particularly the area around Atlanta, has been a Circle of Death for community banks. Most of those banks were overly exposed to residential development, which crashed when housing demand flat lined.
State: Florida<br>Number of Failures: 57
Most of the bank failures in Florida, a victim of a collapsed housing bubble, has been along the state’s east and west coasts.
State: Illinois<br>Number of failures: 47
Illinois, and specifically Chicago, has suffered from an overabundance of banks, creating intense competition and creating a higher number of institutions at risk of getting shut down.
State: California<br>Number of failures: 38
California, like Florida, suffered tremendously from a sudden crash in housing valuations. Many banks suffered as borrowers often handed over the keys on underwater mortgages, particularly in Southern California.
State: Minnesota<br>Number of failures: 17
An overheated real estate market, particularly in major metropolitan areas, has been bad news for Minnesota’s banks.
State: Washington<br>Number of failures: 17
Commercial real estate is often faulted for the high level of problematic assets on the balance sheets of banks in Washington.
