by Calculated Risk on 10/04/2014 08:15:00 AM

This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for Oct 3, 2014.

Changes and comments from surferdude808:

Quiet week for changes to the Unofficial Problem Bank List as there were only two removals. After the changes, the list holds 430 institutions with assets of $136.1 billion. A year ago, the list held 685 institutions with assets of $238.7 billion.

Actions were terminated against Patriot National Bank, Stamford, CT ($552 million Ticker: PNBK) and New Millennium Bank, New Brunswick, NJ ($183 million Ticker: NMNB).

With the passage of the third quarter this week, it is time for the quarterly update to the transition matrix. Full details are available in the accompanying table and a graphic depicting trends in how institutions have arrived and departed the list. Since publication of the Unofficial Problem Bank List started in August 2009, a total of 1,673 institutions have appeared on the list. Since year-end 2012, new entrants have slowed as only 67 institutions have been added since then while 473 institutions have been removed. The pace of action terminations did slow during the latest quarter. At the start of the third quarter, there were 468 institution on the list and there were 27 action termination resulting in a removal rate of 5.8 percent, which well under the 11.9 percent rate for the previous quarter. A high termination rate is easier to achieve as the number of institutions starting each quarter has declined consistently from 1,001 at 2011q3 to the 468 at the start of 2014q3.

At the end of the third quarter, only 432 or 25.8 percent of the banks that have been on the list at some point remain. Action terminations of 646 account for 52 percent of the 1,241 institutions removed. Although failure have slowed over the past two year, they do account for a significant number of institutions that have left the list. Since publication, 383 of the institutions that have appeared on the list have failed accounting for nearly 31 percent of removals. Should another institution on the current list not fail, then nearly 23 percent of the 1,673 institutions that made an appearance on the list would have failed. A 23 percent default rate would be more than double the rate often cited by media reports on the failure rate of banks on the FDIC's official list. Of the $659.9 billion in assets removed from the list, the largest volume of $296.1 billion is from failure while terminations still trail at $270.8 billion.

Unofficial Problem Bank List
Change Summary
		Number of Institutions	Assets ($Thousands)
Start (8/7/2009)		389	276,313,429
Subtractions
	Action Terminated	141	(55,759,559)
	Unassisted Merger	34	(7,152,867)
	Voluntary Liquidation	4	(10,584,114)
	Failures	154	(184,269,578)
	Asset Change		(5,371,544)
Still on List at 9/30/2014		56	13,175,767
Additions after 8/7/2009		376	123,623,785
End (9/30/2014)		432	136,799,552
Intraperiod Deletions1
	Action Terminated	505	215,076,758
	Unassisted Merger	164	72,821,593
	Voluntary Liquidation	10	2,324,142
	Failures	229	111,876,012
	Total	908	402,098,505
1Institution not on 8/7/2009 or 9/30/2014 list but appeared on a weekly list.