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In April one of the largest bank failures in years occurred. State regulators shut down First NBC Bank, New Orleans. The FDIC was appointed the receiver and they promptly sold a small part of the assets (about 1 billion) to Whitney Bank. The December total assets of NBC were 4.74 billion. Of course, no customers lost money, but the FDIC really took a hit to its Deposit Insurance Fund.

A combination of aggressive lending and bad timing led to their downfall. That’s where sound appraisals help protect the community bank.

This is the largest failure in years, and you have to go back to 2008-2009 to find a closure of this size. It can still happen though. But the banking industry has come out of the woods and grows healthier every year.

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