Saturday, February 14, 2015

Unofficial Problem Bank list declines to 386 Institutions

by Bill McBride on 2/14/2015 08:07:00 AM

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

Here is the unofficial problem bank list for Feb 14, 2015.

Changes and comments from surferdude808:

A failure today reduced the Unofficial Problem Bank List to 386 institutions with assets of $121.2 billion. A year ago, the list held 586 institutions with assets of $195 billion.

The FDIC shuttered the doors of Capitol City Bank & Trust Company, Atlanta, GA ($276 million) making it the 89th bank headquartered in Georgia to fail since the on-set of the Great Recession. Astonishingly, the FDIC estimates the failure cost at $88.9 million or nearly 33 percent of the bank's assets.

Historically, commercial bank failure are usually around 12¢ on the dollar. Even with a well above average cost percentage, Capitol City Bank & Trust only ranks as the 54th most expensive failure, in cost percentage terms, of the 89 Georgia closures. Moreover, its cost is under the Georgia average failure cost of 34.7 percent of failed bank assets.

Next week, we anticipate the OCC will release an update on its latest enforcement action activities..