Saturday, October 01, 2016

September 2016: Unofficial Problem Bank list declines to 177 Institutions, Q3 2016 Transition Matrix

by Bill McBride on 10/01/2016 04:58:00 PM

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

Here is the unofficial problem bank list for September 2016.

Changes and comments from surferdude808:

Update on the Unofficial Problem Bank List for September 2016.  During the month, the list fell from 184 institutions to 177 after eight removals and one addition.  Assets dropped by $1.1 billion to an aggregate $55.4 billion.  A year ago, the list held 276 institutions with assets of $82.0 billion.

This month, actions have been terminated against Frontier State Bank, Oklahoma City, OK ($661 million); Peoples State Bank of Commerce, Nolensville, TN ($152 million); North Georgia National Bank, Calhoun, GA ($119 million); Anchor Commercial Bank, Juno Beach, FL ($105 million); State Bank of Taunton, Taunton, MN ($50 million); and Mainstreet Bank, Ashland, MO ($44 million).

Allied Bank, Mulberry, AR ($66 million) failed on September 23rd and, in an infrequent event, Fidelity National Bank, Medford, WI closed through a voluntary liquidation on September 1st.

The addition this month was First Trust & Savings Bank of Albany, Illinois, Albany, IL ($222 million).
Unofficial Problem Banks
With it being the end of the third quarter, we bring an updated transition matrix to detail how banks are moving off the Unofficial Problem Bank List.  Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,713 institutions have appeared on a weekly or monthly list at some point.  Only 10.3 percent of the banks that have appeared on the list remain today.  In all, there have been 1,536 institutions that have transitioned through the list.  Departure methods include 875 action terminations, 400 failures, 245 mergers, and 16 voluntary liquidations.  Of the 389 institutions on the first published list, 20 or 5.1 percent still remain more than seven years later.  The 400 failures represent 23.4 percent of the 1,713 institutions that have made an appearance on the list.  This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.
Unofficial Problem Bank List
Change Summary
  Number of InstitutionsAssets ($Thousands)
Start (8/7/2009)  389276,313,429
  Action Terminated169(63,786,937)
  Unassisted Merger39(9,713,878)
  Voluntary Liquidation4(10,584,114)
  Asset Change(1,465,675)
Still on List at 9/30/2016  205,962,376
Additions after
End (9/30//2016)  17755,466,210
Intraperiod Deletions1     
  Action Terminated706284,256,499
  Unassisted Merger20680,490,602
  Voluntary Liquidation122,474,477
1Institution not on 8/7/2009 or 9/30/2016 list but appeared on a weekly list.