The FDIC released updated financial information for all banks it insures last week, and the results are worse than even last quarter. Most notably, overdue loans have reached an all time high – 4.35% of all loans are overdue which means about $320 billion in borrowed money has stopped being paid back.
Obviously some banks are in more trouble than others. For instance, Corus Bank (one of the top 100 largest banks in the U.S. by deposit size) reports that more than 70% of its loans are overdue!
Nevertheless, the trends across the whole industry continue to be scary, and the FDIC data makes us conclude that despite some news headlines talking about profits from TARP, the banking industry is weakening and not improving.
To show this increased weakness, here are a few troubling statistics from this quarter’s report:
As we wrote a few weeks ago about why you should care if your bank fails, there are a few important reasons to know if your bank is in trouble even if your money is FDIC insured. Thus, given that the data shows banks are continuing to deteriorate, it’s a good idea to search for your bank on BankFox and check its bank health report. As of today, we’ve updated our reports using the FDIC’s new data from the second quarter of 2009.
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