Saturday, May 30, 2015

May 2015: Unofficial Problem Bank list declines to 324 Institutions

by Bill McBride on 5/30/2015 09:40:00 PM

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

Here is the unofficial problem bank list for May 2015.

Changes and comments from surferdude808:

Update on the Unofficial Problem Bank List for May 2015. During the month, the list fell from 342 institutions to 324 after 17 removals. Assets dropped by $13.9 billion to an aggregate $91.2 billion. Asset figures were updated during the month with the release of q1 financials, which added $2.2 billion. A year ago, the list held 496 institutions with assets of $154.1 billion.

Actions were terminated against FirstBank Puerto Rico, Santurce, PR ($12.4 billion Ticker: FBP); The Talbot Bank of Easton, Maryland, Easton, MD ($591 million Ticker: SHBI); Naugatuck Valley Savings and Loan, Naugatuck, CT ($497 million Ticker: NVSL); Suburban Bank & Trust Company, Elmhurst, IL ($488 million); Sterling Federal Bank, F.S.B., Sterling, IL ($458 million); Bloomfield State Bank, Bloomfield, IN ($383 million); Newton Federal Bank, Covington, GA ($229 million); United Midwest Savings Bank, De Graff, OH ($175 million); Greeneville Federal Bank, FSB, Greeneville, TN ($146 million); Marathon Savings Bank, Wausau, WI ($145 million); Home Federal Savings and Loan Association of Collinsville, Collinsville, IL ($96 million); Heritage Bank of St Tammany, Covington, LA ($90 million); Ozark Heritage Bank, National Association, Mountain View, AR ($85 million); Home Bank of Arkansas, Portland, AR ($75 million); and Eastside Commercial Bank, National Association, Bellevue, WA ($32 million).

Other removals include the failed Edgebrook Bank, Chicago, IL ($95 million) and two banks that found merger partners -- The West Michigan Savings Bank, Bangor, MI ($36 million) and Lake County Bank, Saint Ignatius, MT ($32 million).

The FDIC terminated a Prompt Corrective Action order against United American Bank, San Mateo, CA ($286 million).

This past Wednesday, the FDIC released industry results for the first quarter of 2015 and an update on the Official Problem Bank List. The FDIC said the official list had fallen from 291 to 253 institutions and that assets had dropped from $86.7 billion to $60.3 billion. Thus, the institutions count fell by 13.1 percent and assets declined by 30.4 percent. The official list peaked at 888 institutions with assets of $397 billion, so it is not surprising to see the official list continuing to decline. However, what is surprising is the pace of the decline this quarter in the institution count and assets, which are at their fastest quarterly rate since the official list peaked. It is a challenge to identify how problem bank assets declined by $26.4 billion during the first quarter. Perhaps the FDIC pre-maturely included the $12.4 billion from the action termination in May against FirstBank Puerto Rico.