Dramatic collapses made 2023 the biggest year ever for bank failures

Before Silicon Valley Bank collapsed in March, it had been 28 months since a U.S. bank went up in smoke — the longest stretch without a failure in more than 15 years.

SVB’s unexpected demise kicked off a historic year for bank failures. The banks that went under had $548.7 billion of combined assets, the largest total ever in a single year — outpacing both 1984, when Continental Illinois failed (Bank of America eventually bought the remnants), and 2008, when Washington Mutual collapsed (JPMorgan Chase purchased what was left).

San Francisco-based First Republic Bank goes down as the second-largest failure in U.S. history. Santa Clara, California-based Silicon Valley Bank follows at number three on the all-time list and New York City-based Signature Bank is the fourth-largest bank to fail.

The year also brought the demise of crypto-friendly Silvergate Bank — in what was a voluntary self-liquidation rather than a failure — and the failure of Heartland Tri-State Bank after its CEO reportedly fell victim to a crypto scam. In all, five banks failed, the most in a single year since 2017.

The failures come at a considerable cost to more than 100 surviving banks that have more than $5 billion of assets. Those larger banks will have to pay special assessments of 13.4 basis points annually to make up for a $16.3 billion hit to the Deposit Insurance Fund.

What follows is a recap of the year when bank failures roared back to bite the industry.