by Calculated Risk on 10/02/2015 08:33:00 PM

First, a second failure today from the FDIC that makes eight in 2015: Twin City Bank, Longview, Washington, Assumes All of the Deposits of Hometown National Bank, Longview, Washington

As of June 30, 2015, Hometown National Bank had approximately $4.9 million in total assets and $4.7 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.6 million. ... Hometown National Bank is the eighth FDIC-insured institution to fail in the nation this year, and the first in Washington.

Click on graph for larger image.

The first graph shows the number of bank failures per year since the FDIC was founded in 1933.

Typically about 7 banks fail per year, so the 8 failures this year is close to normal.

Note: There were a large number of failures in the '80s and early '90s. Many of these failures were related to loose lending, especially for commercial real estate.  A large number of the failures in the '80s and '90s were in Texas with loose regulation.

Even though there were more failures in the '80s and early '90s, the recent financial crisis was much worse (large banks failed and were bailed out).

The second graph includes pre-FDIC failures. In a typical year - before the Depression - 500 banks would fail and the depositors would lose a large portion of their savings.

Then, during the Depression, thousands of banks failed. Note that the S&L crisis and recent financial crisis look small on this graph.