This weekend bank regulators closed yet another bank, this one a $53.7 million institution in Staples, Minn.
It marks the fourth bank to be shuttered by regulators this year.
Last year, regulators shut down one bank in the same period.
What’s going on here? It’s easy to point to a depressed housing market and tightening credit. Banks’ and thrifts’ profits dropped considerably in the first quarter as they moved more money over to cover potential loan losses.
But it’s hard to know in each bank’s case if those two factors led to their demise. Regulators generally provide little detail in bank closings, other than to say management wasn’t following “safe and sound banking practices.” Sometimes they don’t even say that.
One thing’s certain: There is a trend here. With seven more months to go in the year, we’ll probably see more. Stay tuned.