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Friday, February 26, 2010

Unofficial Problem Bank List increases Significantly

by Calculated Risk on 2/26/2010 11:11:00 PM

This is an unofficial list of Problem Banks compiled only from public sources. Changes and comments from surferdude808:

The Unofficial Problem Bank List underwent major changes during the week as aggregate assets for all institutions were updated to 2009q4 from 2009q3 and the FDIC finally released its enforcement actions issued during January 2010.

The list now includes 644 institutions, up from 617 last week, as 33 institutions with assets of $12 billion were added while 6 with assets of $1.3 billion were deleted. Despite the additions, aggregate assets fell from $329 billion to $326 billion. For the 616 institutions that stayed on the list from last week, their aggregate assets dropped $13.8 billion during the fourth quarter.

Only 154 institutions increased their assets during the quarter with the largest balance sheet increase at West Coast Bank ($80 million). Balance sheet downsizing happened at 462 institutions with the largest decrease at Westernbank Puerto Rico ($1.5 billion) and Sterling Savings Bank ($1 billion).

Deletions include action terminations at The Bank of Harlan ($132 million) and Nevada Bank and Trust Company ($95 million) and the failed Rainier Pacific Bank ($718 million) and Carson River Community Bank ($51 million).

Other removals include the unassisted mergers of Mesa Bank ($206 million) and Arrowhead Community Bank ($77 million) into an affiliate, Sunrise Bank of Arizona ($504 million). However, Sunrise Bank of Arizona was added to the list this week as it was among the January actions released by the FDIC. These entities are controlled by Capitol Bancorp (Ticker: CBC), which has 7 subsidiary institutions on the Unofficial Problem Bank List.

Notable among the 33 institutions added are Macatawa Bank, Holland, MI ($1.8 billion, Ticker: MCBC); Heritage Bank of Commerce, San Jose, CA ($1.36 billion, Ticker: HTBK); and Fidelity Bank, Dearborn, MI ($994 million, Ticker: DEAR). Seven banks headquartered in Georgia were added this week and there are 58 Georgia-based institutions on the list, which equals 9 percent of the 644 total.

Other changes for institutions previously on the list include Prompt Corrective Action Orders issued to Key West Bank ($88 million) and Tamalpais Bank ($629 million).
The list is compiled from regulator press releases or from public news sources (see Enforcement Action Type link for source). The FDIC data is released monthly with a delay, and the Fed and OTC data is more timely. The OCC data is a little lagged. Credit: surferdude808.

See description below table for Class and Cert (and a link to FDIC ID system).

For a full screen version of the table click here.

The table is wide - use scroll bars to see all information!

NOTE: Columns are sortable - click on column header (Assets, State, Bank Name, Date, etc.)

Class: from FDIC
The FDIC assigns classification codes indicating an institution's charter type (commercial bank, savings bank, or savings association), its chartering agent (state or federal government), its Federal Reserve membership status (member or nonmember), and its primary federal regulator (state-chartered institutions are subject to both federal and state supervision). These codes are:
  • N National chartered commercial bank supervised by the Office of the Comptroller of the Currency
  • SM State charter Fed member commercial bank supervised by the Federal Reserve
  • NM State charter Fed nonmember commercial bank supervised by the FDIC
  • SA State or federal charter savings association supervised by the Office of Thrift Supervision
  • SB State charter savings bank supervised by the FDIC
  • Cert: This is the certificate number assigned by the FDIC used to identify institutions and for the issuance of insurance certificates. Click on the number and the Institution Directory (ID) system "will provide the last demographic and financial data filed by the selected institution".