Sunday, July 02, 2017

June 2016: Unofficial Problem Bank list declines to 137 Institutions, Q2 2017 Transition Matrix

by Bill McBride on 7/02/2017 11:18:00 AM

Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for June 2017.

Here are the monthly changes and a few comments from surferdude808:

Update on the Unofficial Problem Bank List for June 2017.  During the month, the list declined slightly from 140 institutions to 137 after four removals and one addition.  Assets increased by $946 million to an aggregate $35.2 billion.  A year ago, the list held 203 institutions with assets of $60.6 billion.

This month, actions have been terminated against Bank of the Orient, San Francisco, CA ($611 million); Cornerstone Bank, Moorestown,  NJ ($245 million  Ticker: CFIC); and Central Bank, Savannah, TN ($98 million).  Fayette County Bank, Saint Elmo, IL ($34 million) left the list through failure.  The addition this month was the $1.9 billion MidSouth Bank, National Association, Lafayette, LA (Ticker: MSL).
Unofficial Problem Banks
With it being the end of the second quarter, we bring an updated transition matrix to detail how banks are moving off the Unofficial Problem Bank List.  Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,720 institutions have appeared on a weekly or monthly list at some point.  Only 8.0 percent of the banks that have appeared on the list remain today.  In all, there have been 1,583 institutions that have transitioned through the list.  Departure methods include 910 action terminations, 405 failures, 251 mergers, and 17 voluntary liquidations.  Of the 389 institutions on the first published list, only 13 or 3.3 percent still remain nearly eight years later.  The 405 failures represent 23.5 percent of the 1,720 institutions that have made an appearance on the list.  This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.
Unofficial Problem Bank List
Change Summary
  Number of InstitutionsAssets ($Thousands)
Start (8/7/2009)  389276,313,429
 
Subtractions     
  Action Terminated174(64,391,534)
  Unassisted Merger40(9,818,439)
  Voluntary Liquidation4(10,584,114)
  Failures158(186,397,337)
  Asset Change(443,904)
 
Still on List at 6/30/2017  134,678,101
 
Additions after
8/7/2009
  12430,505,792
 
End (6/30//2017)  13735,183,893
 
Intraperiod Removals1     
  Action Terminated736305,160,192
  Unassisted Merger21181,081,586
  Voluntary Liquidation132,515,855
  Failures247125,118,011
  Total1,207513,875,644
1Institution not on 8/7/2009 or 6/30/2017 list but appeared on a weekly list.