Friday, December 31, 2010

Problem Banks: Stress by State

by Bill McBride on 12/31/2010 10:25:00 AM

Some more interesting data from Surferdude808:

With the banking crisis ending its third year, it may prove useful to identify which states have experienced the most stress.

At year-end 2007, there were 8,536 insured institutions headquartered in the 50 states, D.C., and Puerto Rico. Since that time, 1,340 or 15.7 percent have either failed or made an appearance on the Unofficial Problem Bank List (see table below).

When ranking markets with a minimum of 15 institutions at year-end 2007, Arizona has experienced the most stress with 45.6 percent of its institutions having failed or being identified as a problem. Washington is a close second at 45.4 percent. The other stressed banking states that rank in the top ten include Nevada (43 percent), Oregon (40 percent), Florida (37 percent), Georgia (34 percent), California (34 percent), Utah (32 percent), Idaho (26 percent), and Colorado (25 percent).

The common theme among these is overexposure to commercial real estate lending, particularly residential construction & development loans, and the collapse of real estate markets. At the other end of the spectrum with comparatively little stress include Iowa (4.3 percent), New Hampshire (4.2 percent), and West Virginia (1.5 percent). Vermont is the only state that has not experienced a failed institution or one appearing on the Unofficial Problem Bank List.
State2007 Count20101Removals2Failures3Total4% 5Rank
AK61  10.0%47
AL16024 42817.5%16
AR15014221812.0%25
AZ5715292645.6%1
CA3136563410533.5%7
CO15933434025.2%10
CT5671 814.3%23
DC82  20.0%47
DE333  39.1%33
FL3176744511636.6%5
GA3526445111933.8%6
HI93  30.0%47
IA3911421174.3%44
ID194 1526.3%9
IL6716513810415.5%20
IN16213311710.5%27
KS35732574412.3%24
KY2061631209.7%29
LA162811106.2%39
MA181811105.5%41
MD9715 62121.6%12
ME342  25.9%40
MI164223103521.3%13
MN443652158218.5%15
MO361263114011.1%26
MS974 155.2%42
MT79141 1519.0%14
NC11214221816.1%18
ND9741 55.2%42
NE2481052176.9%38
NH241  14.2%45
NJ12714332015.7%19
NM537 2917.0%17
NV4481101943.2%3
NY20316142110.3%28
OH2651924259.4%31
OK2591712207.7%37
OR409161640.0%4
PA24617 3208.1%36
PR101 340.0%47
RI1322 40.0%47
SC9317142223.7%11
SD897 189.0%34
TN203171 188.9%35
TX6594878639.6%30
UT6816 62232.4%8
VA11916 21815.1%22
VT16   00.0%47
WA97282144445.4%2
WI29639334515.2%21
WV68  111.5%46
WY4321149.3%32
Totals 8,536 935 82 323 1,340 15.7% 
1 Unofficial Problem Bank List Year-end 2010
2 Unofficial Problem Bank List Removals (ex-Failures)
3 Failures (2008-2010)
4 Total Failures, UPBL, & UPBL Removals (ex-Failures)
5 Total failures, UBPL, and UPBL ex-failures to 2007 count (a percentage for states with less than 15 institutions is not determined because of possible skew to ranking).

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