Also, this year is still small on the “number of failed banks” list. Banks fail fairly often and this one failing would be no news normally.
Too early to call, but this might be a signal of things to come.
Look at the failed bank list: https://www.fdic.gov/resources/resolutions/bank-failures/fai...
Small banks fail. Big banks don’t. If anything this year is abnormal in that big banks have failed.
Naive read is that the bank just had 54 million in withdrawals that it couldn't cover?
Guessing that isn't correct. Curious on details. Was this a surprise?
Sounds like they had some bad loans on the books, smaller banks in rural communities often struggle to adequately assess loan risk because talent is hard to find.
A rural bank gave out one of its largest loans, a few million, to a guy to build a crypto farm 3-4 years ago. She called me up during the crypto crash asking for advice on how to price all of these GPUs he bought at the top of the market since he was facing liquidation. The bank took a bath on it. And that was just one of many. Tons of PPP fraud, small Town corruption, etc.
They just need to kick the can long enough to give impairments caused by rapid rate increases time to burn off.
