Saturday, September 26, 2015

September 2015: Unofficial Problem Bank list declines to 276 Institutions, Q3 2015 Transition Matrix

by Bill McBride on 9/26/2015 04:36:00 PM

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

Here is the unofficial problem bank list for September 2015.

Changes and comments from surferdude808:

Update on the Unofficial Problem Bank List for September 2015. During the month, the list fell from 282 institutions to 276 after eight removals and two additions. Assets dropped by $683 million to an aggregate $82.0 billion. A year ago, the list held 432 institutions with assets of $136.8 billion.

Actions have been terminated against Virginia Community Bank, Louisa, VA ($215 million); US Metro Bank, Garden Grove, CA ($127 million); Freedom National Bank, Greenville, RI ($111 million); Amory Federal Savings and Loan Association, Amory, MS ($93 million Ticker: USMT); and Legacy Bank, Altoona, IA ($92 million).

Three banks found their way off the list by finding merger partners including Northwest Georgia Bank, Ringgold, GA ($286 million); The Patapsco Bank, Baltimore, MD ($219 million); and First Scottsdale Bank, National Association, Scottsdale, AZ ($96 million).

The additions this month were The National Capital Bank of Washington, Washington, DC ($420 million); and Anthem Bank & Trust, Plaquemine, LA ($136 million).
Unofficial Problem Banks
With it being the end of the third quarter, we bring an update on the transition matrix. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,698 institutions have appeared on a weekly or monthly list at some point. There have been 1,422 institutions have come on and gone off the list. Departure methods include 785 action terminations, 393 failures, 230 mergers, and 14 voluntary liquidations. The third quarter of 2015 started with 309 institutions on the list, so the 25 action terminations during the quarter reduced the list by 8.1 percent. Of the 389 institutions on the first published list, 34 or 8.7 percent still remain six years later. The 393 failures are 23.1 percent of the 1,698 institutions that have appeared on the list. This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.
Unofficial Problem Bank List
Change Summary
  Number of InstitutionsAssets ($Thousands)
Start (8/7/2009)  389276,313,429
 
Subtractions     
  Action Terminated157(59,896,817)
  Unassisted Merger39(9,713,878)
  Voluntary Liquidation4(10,584,114)
  Failures155(184,358,339)
  Asset Change(3,015,680)
 
Still on List at 9/30/2015  348,744,601
 
Additions after
8/7/2009
  24281,999,685
 
End (9/30/2015)  37687,456,390
 
Intraperiod Deletions1     
  Action Terminated628259,373,329
  Unassisted Merger19178,178,815
  Voluntary Liquidation102,324,142
  Failures238119,574,853
  Total1,067459,451,139
1Institution not on 8/7/2009 or 9/30/2015 list but appeared on a weekly list.