David P. HoffmanW. Scott SorrelsYvonne M. Williams-Wass
The financial crisis that began in early 2008 made a devastating impact on the nation's financial institutions, particularly on community banks with smaller assets and portfolios that were vulnerable to the toxic market conditions. By late 2012, however, the once frantic pace of bank failures showed signs of slowing, and the number of banks in troubled conditions also appeared to begin stabilizing. The Federal Deposit Insurance Corporation (FDIC) announced that the number of banks on its “problem list” fell from 772 to 732 in the second quarter of 2012, the smallest number of “problem banks” since year-end 2009.1 However, 732 represents numerous problem banks, and as the economy continues to struggle into 2014, additional bank failures and other regulatory actions are likely to occur.
In its wake, ...