Closing of Bank in New Mexico Sets Post-Depression Record for Failures
A small New Mexico bank failed Thursday, becoming the 80th to fail this year and thus setting a post-Depression record for bank failures.
The new mark, topping the old record of 79 set last year, comes as many banks continue to pay the price for bad loans primarily in energy, real estate and agriculture. The all-time record for bank failures was set in 1933 during the height of the Depression, when more than 4,000 banks are believed to have failed. Banking regulators expect this year’s total to exceed 100.
The bank with the unhappy distinction of setting the record was Moncor Bank N.A., based in Roswell, N.M., which the Comptroller of the Currency declared insolvent due to “aggressive” growth policies “at the expense of safe and sound banking practices.”
As of Tuesday, the bank had assets of about $32 million and deposits of $24 million, regulators said.