List of Failed Banks in the U.S.

Failed banks have been in the news a lot over the last year, especially after Silicon Valley closed in the spring of 2023. But the reality is, outside of major crises, we don’t see a lot of bank closings.

While it’s not something you need to be overly worried about, it’s wise to be proactive and know what to do if it happens.

Here’s an overview of how bank failures work, with stats on failed banks and a breakdown of every bank closure from 2000 to now.

What Is a Failed Bank?

A failed bank is one that federal or state regulators closed due to insolvency.

When a bank can no longer service its depositors, they fail, and FDIC insurance goes into effect, providing bank customers with access to their funds up to the covered limit ($250,000 per depositor).

The federal government can close national banks, and state banking commissioners can close state banks.

However, they don’t do this until there’s adequate proof the bank can no longer meet its obligations.

Why Do Banks Fail?

The most common reason banks fail is that their liabilities exceed their assets.

A bank’s liabilities are those owed to creditors and depositors. It doesn’t always mean the bank did something wrong. Sometimes, it’s due to an investment gone bad or the inability to borrow funds from solvent banks.

Unfortunately, when word gets out that a bank is at risk, depositors may rush to the bank to take out their funds, further decreasing the bank’s assets and making it more insolvent.

Are Bank Failures Common?

Bank failures aren’t as common as most people think. When banks fail, many people get concerned that more will follow.

But throughout recent history, there have only been two banking crises, with hundreds of banks closing at a time.

• The first was during the Savings and Loans crisis from 1980 to 1995, when almost 3,000 banks closed due to consecutive high inflation and interest rates, making it impossible for banks to survive.
• The second was during the housing crisis of 2008, which caused many bank failures, not to mention a broken housing industry.

Aside from those times of crisis, there were an average of 0-10 bank closings per year, which shows there’s nothing to panic about when you hear of one or even several bank closings, and often a depositor rush to the bank could worsen things during times of panic.

When Are Bank Failures Most Frequent?

In the last 24 years, there have been over 500 bank closings, but bank failures haven’t been as common in recent years.

According to the FDIC, 2009 to 2011 saw the largest number of bank failures, with a total of 389 failures within three years. The numbers drastically decreased from there, with no bank failures in 2018, 2021, or 2022.

Where Do Bank Failures Usually Happen?

Bank failures happen around the country, but the most prominent states with bank failures since 2000 include:

• California: 43 closings
• Florida: 76 closings
• Georgia: 93 closings
• Illinois: 69 closings

Then there are states like Idaho, Maine, and Montana that have had zero bank closings in the last 24 years.

What Was the Largest Bank Failure?

Washington Mutual was the largest bank failure in US history. The bank closed in 2008 due to the housing crisis and held $307 billion in assets when it closed.

The fall of Washington Mutual occurred because of a bank run where Washington Mutual customers withdrew $17 billion in assets in less than two weeks.

The second largest bank failure occurred at First Republic Bank on May 1, 2023. This California Bank was closed by the California Department of Financial Protection and Innovation. The bank had $229.1 billion in assets when it closed.

The third largest bank failure in US history also occurred in 2023 in California.

Regulators shut down Silicon Valley Bank on March 10, 2023, and it was the largest bank failure since the 2008 recession. At the time of closure, Silicon Valley Bank had $209 billion in assets.

List of Failed Banks Since 2000

Failed Banks in 2000

Failed Banks in 2001

Failed Banks in 2002

Failed Banks in 2003

Failed Banks in 2004

Failed Banks in 2005

No bank failures were recorded.

Failed Banks in 2006

No bank failures were recorded.

Failed Banks in 2007

Failed Banks in 2008

Failed Banks in 2009

Failed Banks in 2010

Failed Banks in 2011

Failed Banks in 2012

Failed Banks in 2013

Failed Banks in 2014

Failed Banks in 2015

Failed Banks in 2016

Failed Banks in 2017

Failed Banks in 2018

No bank failures were recorded.

Failed Banks in 2019

Failed Banks in 2020

Failed Banks in 2021

No bank failures were recorded.

Failed Banks in 2022

No bank failures were recorded.

Failed Banks in 2023

Source: FDIC List of Failed Banks

Failed Banks in 2024

No bank failures have currently been recorded.

Steps To Take if You’re Concerned About Banks Failing

If you’re worried about the possibility of your bank failing, there are steps you can take.

First and foremost, only deposit funds with an FDIC-insured bank. If you have over $250,000 to deposit, spread the wealth, placing the funds at various banks, and not all at one, so you don’t have more than is insured at one bank.

If you’re married or have someone you can put on the account as a joint account holder, you get double the typical $250,000 coverage.

The same applies to credit unions, which are insured by the National Credit Union Administration (NCUA). If you bank with a credit union, ensure that your funds are covered by NCUA insurance.

You can also consider other account types with different rules, such as trust or retirement accounts. Always ask what the depository rules are and how you’d be insured in the face of a bank failure before choosing accounts.

Learn More:

• How to Insure Excess Deposits

Final Thoughts

The idea of a failed bank can be unsettling, but as long as your bank is FDIC insured, you don’t have much to worry about.

While you might be without your funds for a day or two if a bank fails, you won’t lose your funds in an FDIC-insured account.