Forty Failed Banks and Credit Unions of 2008 (2024)

Linda McGlasson • December 31, 2008
Forty Failed Banks and Credit Unions of 2008 (1)
Failed banking institutions - the one number that continued to grow all year.After a year in which only three banks closed (and none the two years prior), 2008 saw 25 banks and 15 credit unions shuttered. Following is a list of the 40 banking institutions that failed in 2008.

Some Facts About Failed Banking Institutions:

Failed institutions in 2007: Banks 3 | Credit Unions 3

Failed institutions in 2008: Banks 25 | Credit Unions 15

States w/most failed institutions - 2008: CA (10), GA (5), CT, NV (3 each)

Cities w/most failed institutions - 2008: Alpharetta, GA., Bradenton, FL., Henderson, NV., Newport Beach, CA. (2 each)

Source: FDIC, NCUA.

Institution: Norlarco Credit Union
Ft. Collins, CO.
Assets/Deposits: $290 million
Date of Closure: January 24, 2008
Regulator: Colorado State Commissioner of Financial Services
Acquired By: Public Service Credit Union

Institution: Douglass National Bank
Kansas City, MO.
Assets/Deposits: $58.5 million/$53.8 million
Date of Closure: January 25, 2008
Regulator: OCC
Acquired By: Liberty Bank and Trust

Institution: Hume Bank
Hume, Mo.
Assets/Deposits: $18.7 million/$13.6 million
Date of Closure: March 7, 2008
Regulator: Commissioner of Missouri's Division of Finance
Acquired By: Security Bank

Institution: St. Luke Baptist Federal Credit Union
Laurelton, New York
Assets/Deposits: $49,734
Date of Closure: May 3, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: ANB Financial
Bentonville, AR.
Assets/Deposits: $2.1 billion/ $1.8 billion
Date of Closure: May 9, 2008
Regulator: OCC
Acquired By: Pulaski Bank and Trust Company

See Also
What Happens When A Bank Fails? | BankrateHow to Choose a Credit Union: 10 Factors to ConsiderWhy NWCU and Other Credit Unions Aren’t Impacted by Recent Bank Failures

Institution: Father Burke Federal Credit Union
Bronx, NY.
Assets/Deposits: $1.2 million
Date of Closure: May 12, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: Cal State 9 Credit Union
Concord, CA.
Assets/Deposits: $339 million
Date of Closure: May 22, 2008
Regulator: NCUA
Acquired By: Patelco Credit Union

Institution: First Integrity Bank
Staples, MN.
Assets/Deposits: $54.7 million/$50.3 million
Date of Closure: May 30, 2008
Regulator: OCC
Acquired By: First International Bank and Trust

Institution: Sterlent Credit Union
Pleasanton, CA.
Assets/Deposits: $94.6 million
Date of Closure: July 1, 2008
Regulator: NCUA
Acquired By: Patelco Credit Union

Institution: IndyMac Bank, FSB
Pasadena, CA.
Assets/Deposits: $32.01 billion/$19.06 billion
Date of Closure: July 11, 2008
Regulator: OTS
Acquired By: FDIC conservatorship

Institution: Meriden F.A. Federal Credit Union
Meriden, CT.
Assets/Deposits: $337, 968
Date of Closure: July 16, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: First National Bank of Nevada
Reno, NV.
Assets/Deposits: $3.4 billion/$3 billion
Date of Closure: July 25, 2008
Regulator: OCC
Acquired By: Mutual of Omaha Bank

Institution: First Heritage Bank
Newport Beach, CA.
Assets/Deposits: $254 million/$233 million
Date of Closure: July 25, 2008
Regulator: OCC
Acquired By: Mutual of Omaha Bank

Institution: New London Security FCU
New London, CT.
Assets/Deposits: $12.7 million
Date of Closure: July 28, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: First Priority Bank
Bradenton, FL
Assets/Deposits: $259 million/$227 million
Date of Closure: August 1, 2008
Regulator: Commissioner of the Florida Office of Financial Regulation
Acquired By: SunTrust Bank

Institution: Port Trust Federal Credit Union
Charleston, S.C.
Assets/Deposits: $460,915
Date of Closure: August 5, 2008
Regulator: NCUA
Acquired By: CPM Federal Credit Union

Institution: Columbian Bank and Trust Co.
Topeka, KS.
Assets/Deposits: $752 million/$622 million
Date of Closure: August 22, 2008
Regulator: Kansas Office of the State Bank Commissioner
Acquired by: Citizens Bank & Trust

Institution: Integrity Bank
Alpharetta, GA.
Assets/Deposits: $1.1 billion/$974 million
Date of Closure: August 29, 2008
Regulator: Georgia Department of Banking and Finance
Acquired By: Regions Bank

Institution: Valley Credit Union
San Jose, CA.
Assets/Deposits: $257 million
Date of Closure: September 2, 2008
Regulator: NCUA
Acquired By: NCUA Conservatorship

Institution: Silver State Bank
Henderson, NV.
Assets/Deposits: $2 billion/$1.7 billion
Date of Closure: September 5, 2008
Regulator: Nevada Financial Institutions Division
Acquired By: Nevada State Bank/National Bank of Arizona

Institution: Interfaith Federal Credit Union
East Orange, N.J.
Assets/Deposits: $388,000
Date of Closure: September 17, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: AmeriBank, Inc.
Northfork, W.V.
Assets/Deposits: $115 million/$102 million
Date of Closure: September 19, 2008
Regulator: OTS
Acquired By: Pioneer Community Bank, / The Citizen Savings Bank

Institution: Washington Mutual Bank
Henderson, NV.
Assets/Deposits: $307 billion/$188 billion
Date of Closure: September 25, 2008
Regulator: OTS
Acquired By: JP Morgan Chase

Institution: Kaiperm Federal Credit Union
Oakland, CA.
Assets/Deposits: $91 million
Date of Closure: September 29, 2008
Regulator: NCUA
Acquired By: Alliant Credit Union

Institution: TEXDOT WF Credit Union
Wichita Falls, TX.
Assets/Deposits: $1.8 million
Date of Closure: September 30, 2008
Regulator: NCUA
Acquired By: Postel Family Credit Union

Institution: N&W Poca Divisi
on Federal Credit Union
Bluefield, W.V.
Assets/Deposits: $6 million
Date of Closure: October 6, 2008
Regulator: NCUA
Acquired By: NCUA Liquidation

Institution: Main Street Bank
Northville, Mich.
Assets/Deposits: $98 million/$86 million
Date of Closure: Oct. 10, 2008
Regulator: Michigan Office of Financial & Insurance Services
Acquired By: Monroe Bank & Trust

Institution: Meridian Bank
Eldred, IL.
Assets/Deposits: $39.18 million/$36.88 million
Date of Closure: October 10, 2008
Regulator: Illinois Division of Banking
Acquired By: National Bank

Institution: High Desert Federal Credit Union
Apple Valley, CA.
Assets/Deposits: $149 million
Date of Closure: October 16, 2008
Regulator: NCUA
Acquired By: NCUA Conservatorship

Institution: Alpha Bank & Trust
Alpharetta, GA.
Assets/Deposits: $354.1 million/$346.2 million
Date of Closure: October 24, 2008
Regulator: Georgia Department of Banking and Finance
Acquired By: Stearns Bank, N.A.

Institution: Freedom Bank
Bradenton, FL.
Assets/Deposits: $287 million/$254 million
Date of Closure: October 31, 2008
Regulator: Florida Office of Financial Regulation
Acquired By: Fifth Third Bank

Institution: Franklin Bank SSB
Houston, TX.
Assets/Deposits: $5.1 billion/$3.7 billion
Date of Closure: November 7, 2008
Regulator: Texas Department of Savings and Mortgage Lending
Acquired By: Prosperity Bank

Institution: Security Pacific Bank
Los Angeles, CA.
Assets/Deposits: 4561.1 million/$450.1 million
Date of Closure: November 7, 2008
Regulator: California Department of Financial Institutions
Acquired By: Pacific Western

Institution: The Community Bank
Loganville, GA.
Assets/Deposits: $681 million/$611 million
Date of Closure: November 21, 2008
Regulator: Georgia Department of Banking and Finance
Acquired By: Bank of Essex

Institution: Downey Savings and Loan Association
Newport Beach, CA.
Assets/Deposits: $12.8 billion/$9.7 billion
Date of Closure: November 21, 2008
Regulator: OTS
Acquired By: U.S. Bank

Institution: PFF Bank and Trust
Pomona, CA.
Assets/Deposits: $3.7 billion/$2.4 billion
Date of Closure: November 21, 2008
Regulator: OTS
Acquired By: U.S. Bank

Institution: West Hartford Credit Union
Farmington, CT.
Assets/Deposits: $2.9 million
Date of Closure: December 5, 2008
Regulator: Connecticut Department of Banking
Acquired By: NCUA

Institution: First Georgia Community Bank
Jackson, GA.
Assets/Deposits: $$237.5 million/$197.4 million
Date of Closure: December 5, 2008
Regulator: Georgia Department of Banking and Finance
Acquired By: United Bank

Institution: Sanderson State Bank
Sanderson, TX.
Assets/Deposits: $37 million/$27.9 million
Date of Closure: December 12, 2008
Regulator: Texas Department of Banking
Acquired By: Pecos County State Bank

Institution: Haven Trust Bank
Duluth, GA.
Assets/Deposits: $572 million/$515 million
Date of Closure: December 12, 2008
Regulator: Georgia Department of Banking and Finance
Acquired By: Branch Banking & Trust Company (BB&T)

Forty Failed Banks and Credit Unions of 2008 (2024)

FAQs

How many credit unions failed in 2008? ›

Dec. 31, 2008 – Nineteen consumer-owned credit unions fail in 2008, resulting in a loss of $232 million to the National Credit Union Share Insurance Fund.

Keep Reading ›
Why did credit unions survive 2008 financial crisis? ›

We propose that as public sentiment against banks turned sharply negative, some consumers found credit unions more appealing, due to their emphasis on value creation for the community rather than profit maximization. This shift directly led to an increase in market share for credit unions.

Read More ›
What happens to credit unions if banks collapse? ›

If the bank fails, you'll get your money back. Nearly all banks are FDIC insured. You can look for the FDIC logo at bank teller windows or on the entrance to your bank branch. Credit unions are insured by the National Credit Union Administration.

View Details ›
Which credit unions have failed? ›

Conservatorships and Liquidations
YearDateCredit Union Name
202209/30/2022Paducah Teachers Federal Credit Union
202203/04/2022Empire Financial Federal Credit Union
202201/03/2022Pomona Postal Federal Credit Union
202112/30/2021Portsmouth Schools Federal Credit Union
41 more rows

Know More ›
Is a credit union safer than a bank right now? ›

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

Continue Reading ›
What was the largest bank to fail in 2008? ›

SVB's collapse marked the second largest bank failure in U.S. history after Washington Mutual's in 2008.

Learn More Now ›
Can banks seize your money if the economy fails? ›

It indicates an expandable section or menu, or sometimes previous / next navigation options. Your money is safe in a bank, even during an economic decline like a recession. Up to $250,000 per depositor, per account ownership category, is protected by the FDIC or NCUA at a federally insured financial institution.

View More ›
Why do banks hate credit unions? ›

First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.

Show Me More ›
Are credit unions safer than banks during a recession? ›

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

See Details ›
Has anyone ever lost money in a credit union? ›

“Not one penny of insured savings has ever been lost by a member of a federally insured credit union.”

Explore More ›

Who are the top 5 credit unions? ›

  • No. 1 — Navy Federal Credit Union.
  • No. 2 — State Employees' Credit Union.
  • No. 3 — Pentagon Federal Credit Union.
  • No. 4 — Boeing Employees' Credit Union.
  • No. 5 — SchoolsFirst Federal Credit Union.
  • No. 6 — Golden 1 Credit Union.
  • No. 7 — America First Credit Union.
  • No. 8 — Alliant Credit Union.
May 14, 2024

See Details ›
Is money safe in a credit union? ›

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.

Read On ›
How often do credit unions fail? ›

Angela Vossmeyer, an associate professor of economics at Claremont McKenna College, said that data from the National Credit Union Administration shows that six to seven credit unions, on average, have entered conservatorship or liquidation annually since 2017.

Read On ›
Will credit unions survive a recession? ›

Also, a 2022 report by the Ascent stated research shows credit unions are less likely to fail compared to banks during recessions. If you want a financial partner that you're more likely to be able to stick with long-term, even during economic uncertainty, credit unions tend to fare better than banks.

Read More ›
Which two institutions failed in 2008? ›

The financial crisis started with Bear Stearns and Lehman brothers. The U.S. government did not bailout Lehman and the institution filed for bankruptcy and eventually closed. Bear Stearns was picked up by JP Morgan and no longer exists.

Discover More Details ›
What is the downfall of a credit union? ›

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Get More Info Here ›
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