Saturday, February 26, 2011

Unofficial Problem Bank list increases to 960 Institutions

by Bill McBride on 2/26/2011 08:51:00 AM

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

Here is the unofficial problem bank list for Feb 25, 2011.

Changes and comments from surferdude808:

As anticipated, the FDIC released its enforcement actions for January 2011, which contributed to many changes for the Unofficial Problem Bank List. This week, there are three removals and 12 additions leaving the Unofficial Problem Bank List at 960 institutions. The net changes added $8.9 billion in assets, which is the largest weekly asset increase since June 18, 2010 when $19 billion was added. The average net weekly change has been about seven additions and $1.7 billion in assets. However, the aggregate assets on the list declined this week by $4.7 billion to $413.8 billion from $418.9 billion as 2010q3 financials were replaced by year-end figures. Positively, the change in financials caused a $13.6 billion decline in assets.

The three removals include the failed Valley Community Bank, St. Charles, IL ($124 million) and action terminations against Lafayette Community Bank, Lafayette, IN ($131 million) and American Continental Bank, City Of Industry, CA ($129 million).

Most notable among the 12 additions this week are BankAtlantic, Fort Lauderdale, FL ($4.5 billion Ticker: BBX); Bridgeview Bank Group, Bridgeview, IL ($1.5 billion); EVB, Tappahannock, VA ($1.1 billion Ticker: EVBS); PrimeSouth Bank, Blackshear, GA ($422 million); and West Pointe Bank, Oshkosh, WI ($409 million).

Other changes include the FDIC issuing a Prompt Corrective Action order against Seattle Bank, Seattle, WA ($468 million) and terminating one against Idaho First Bank, McCall, ID ($77 million).

After the monthly release of actions by the FDIC, it would not be unusual for the Unofficial Problem Bank List to trend down until the middle of next month as closings tend to outpace new order issuance during this part of the month. Until next week, try to have a safe & sound banking week.
CR Note: The FDIC released the Q4 Quarterly Banking Profile this week. The FDIC reported 884 official "problem" institutions at the end of 2010 (the highest since 1992) with $390 billion in assets. There are a total 6,529 commercial banks and 1,128 savings institutions, so about 11.5% are on the "problem" list. Assets of all institutions are $13.1 trillion, so problem institutions have just under 3% of total assets.