Closed Friday, October 10, 2008 · Northville, Wayne County, Michigan
Main Street Bank
No bank in Michigan had failed for six years, since New Century Bank closed in 2002. The estimated loss came to 50% of Main Street Bank's assets, one of the 30 highest ratios among the 583 failures since 2000. It failed four years after it opened in 2004.
On the books, 2004 to 2008
Total assets peaked at $158 million in the second quarter of 2007 and were 29% lower at the final report. In the three years to the second quarter of 2007, its assets grew 825%. Equity capital went from 72% of assets in the first quarter of 2004 to 2.5% at the last report. It reported a net loss in four of its final five reporting years. The deepest annual loss, $6.5 million, was booked in 2008 in only part of the year.* 2008: January to June only, the last report before closing.
Size against the other 2008 failures
Total assets of each 2008 failure, log scale; Main Street Bank in red.
By assets it ranked 19th of the 25 failures in 2008. Within Michigan it ranks 12th by size of the 37 failures recorded since 1934. Across the failures of 2008, the median estimated loss came to 37% of assets. In the size ranking of that year, just above it was First Heritage Bank, NA of Newport Beach, California ($255 million, loss 36% of assets); just below, Ameribank of Northfork, West Virginia ($104 million, loss 37% of assets). Every 2008 failure in the explorer.
The only other bank closed that day was Meridian Bank of Eldred, Illinois.
Failures in Michigan
The next was Michigan Heritage Bank of Farmington Hills, on April 24, 2009. Wayne County has 7 failed banks on FDIC record since 1934. Closest in time: Omnibank (1998), Home Federal Savings Bank (2009), New Liberty Bank (2010), Peoples State Bank (2011), Fidelity Bank (2012).