Failed Bank List

Closed Friday, January 30, 2009 · Salt Lake City, Salt Lake County, Utah

MagnetBank

No bank took over MagnetBank's deposits: the FDIC paid insured depositors directly. The estimated loss came to 57% of its assets, one of the 30 highest ratios among the 583 failures since 2000. It failed four years after it opened in 2005.

On the books, 2005 to 2008

Total assets and equity capital each quarter before closing, and the estimated lossTotal assetsEquity capitalEstimated loss$0$150M$300M$450M$600M200620072008Closed
Total assets peaked at $568 million in the first quarter of 2007 and were 47% lower at the final report. Equity capital went from 98% of assets in the third quarter of 2005 to 5.3% at the last report. By then 24% of its loans were 90 days or more past due or no longer accruing interest. It reported a net loss in three of its final four reporting years. The deepest annual loss, $24.3 million, was booked in 2008 in only part of the year.
Net income in each reporting year before closing, with equity capital as a share of assets at year endNet income per yearEquity to assets at year end$32M−$32M2005: −$3.0 million200563%2006: $1.1 million200610%2007: −$7.3 million20078.5%2008: −$24.3 million2008*5.3%
* 2008: January to September only, the last report before closing.

Size against the other 2009 failures

Total assets of the 140 banks that failed in 2009, log scale$10M$100M$1B$10B$100B
Total assets of each 2009 failure, log scale; MagnetBank in red.

By assets it ranked 65th of the 140 failures in 2009. Within Utah it ranks sixth by size of the 27 failures recorded since 1934. Across the failures of 2009, the median estimated loss came to 27% of assets. Ranked by estimated loss, it is 219th of 2,944 failures since 1934. In the size ranking of that year, just above it was FirstBank Financial Services of McDonough, Georgia ($317 million, loss 48% of assets); just below, RockBridge Commercial Bank of Atlanta, Georgia ($294 million, loss 34% of assets). Every 2009 failure in the explorer.

Two other banks closed that day; the largest was Suburban Federal Savings Bank of Crofton, Maryland, at $347 million.

Failures in Utah

No bank in Utah had failed for four years, since Bank of Ephraim closed in 2004. MagnetBank was one of two banks in Utah to fail in 2009. The next was America West Bank of Layton, on May 1, 2009. Salt Lake County has 13 failed banks on FDIC record since 1934. Closest in time: American Savings and Loan Association, A Federal Association (1989), Williamsburg Savings Bank (1990), Home Savings Bank (1990), Advanta Bank Corp. (2010), Proficio Bank (2017).

Bank failures in Utah per year, 1980 to 2026012341984: 11985: 21986: 41987: 31988: 31989: 31990: 22004: 12009: 22010: 32011: 12017: 119801990200020102020
Per year since 1980, 2009 in red. Every Utah failure

FDIC certificate 58001 · loss estimate as of July 31, 2026 · How to read this page