Saturday, August 07, 2010

Unofficial Problem Bank list increases to 811 institutions

by Bill McBride on 8/07/2010 03:24:00 PM

Note: this is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for August 6, 2010.

Changes and comments from surferdude808:

The Federal Reserve was active this week issuing several Written Agreements and two Prompt Corrective Action Orders. Five state member banks were added to the Unofficial Problem Bank List this week. The additions are New Peoples Bank, Inc., Honaker, VA ($868 million); CapitalBank, Greenwood, SC ($745 million Ticker: CPBK); Premier Bank, Dubuque, IA ($292 million); Oregon Pacific Bank, Florence, OR ($164 million Ticker: ORPB); and Progress Bank of Florida, Tampa, FL ($119 million). Progress Bank of Florida has the dubious distinction of receiving a simultaneous Prompt Corrective Action Order with an enforcement action, which is a first during this crisis.

The Federal Reserve also issued a Prompt Corrective Action Order against Community First Bank - Chicago ($60 million). The OTS converted the Supervisory Agreement against Home Federal Bank of Hollywood to a Cease & Desist Order this week. The other changes are two removals -- the failed Ravenswood Bank ($301 million) and Charter West National Bank, which had its Supervisory Agreement terminated by the OCC.

The Unofficial Problem Bank List had a net change of three additions and finishes the week at 811 institutions with aggregate assets of $416.5 billion.
Problem Banks Click on graph for larger image in new window.

This graph shows the number of banks on the unofficial list. The number of institutions has more than doubled since we started the list in early August 2009 - even with all the bank failures (failures are removed from the list). The number of assets is up 50 percent over the last year.

On August 7, 2009, we listed 389 institutions with $276 billion in assets, and now the list has 811 institutions and $416.5 billion in assets.

The four red dots are the number of banks on the official problem bank list as announced in the FDIC quarterly banking profile for Q2 2009 through Q1 2010. The dots are lagged one month because of the delay in announcing formal actions. The FDIC Q2 2010 Quarterly Banking Profile will be released in a two weeks.

The unofficial count is close, but is slightly lower than the official count - probably mostly due to timing issues - so I expect the FDIC to list around 840 to 870 institutions at the end of Q2.