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Saturday, May 28, 2011

Unofficial Problem Bank list increases to 997 Institutions

by Calculated Risk on 5/28/2011 02:54:00 PM

Earlier ...
Summary for Week Ending May 27th

Note: this is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for May 27, 2011.

Changes and comments from surferdude808:

Activities of the FDIC contributed to many changes to the Unofficial Problem Bank List this week as they closed a bank and released their enforcement actions through April 2011. In all, there were 12 additions and three removals, which leaves the list at 997 institutions with assets of $415.4 billion compared with 988 institutions and assets of $423.9 billion last week.

Asset figures were updated from 2010q4 to 2011q1, which caused aggregate assets to drop by $9.8 billion. The net of additions and removals this week caused assets to rise $1.4 billion.

The removals include the failed First Heritage Bank, Snohomish, WA ($173 million) and action terminations against CB&S Bank, Inc., Russellville, AL ($1.3 billion); and Alliance Banking Company, Winchester, KY ($60 million).

Among the 12 additions are Four Oaks Bank & Trust Company, Four Oaks, NC ($961 million); Frontier State Bank, Oklahoma City, OK ($517 million); Security First Bank, Fresno, CA ($114 million Ticker: SFRK); and Central Florida State Bank, Belleview, FL ($85 million Ticker: CEFB).

Other changes include Prompt Corrective Actions order issued by the FDIC against Community South Bank, Parsons, TN ($658 million); First International Bank, Plano, TX ($321 million); and Community Bank of Central Wisconsin, Colby, WI ($104 million).
CR Note: The FDIC Q1 Quarterly Bank Profile showed 888 problem institutions on the official problem bank list. The FDIC's official problem bank list is comprised of banks with a CAMELS rating of 4 or 5, and the list is not made public (just the number of banks and assets every quarter). Note: Bank CAMELS ratings are also not made public.

CAMELS is the FDIC rating system, and stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. The scale is from 1 to 5, with 1 being the strongest.

As a substitute for the CAMELS ratings, surferdude808 is using publicly announced formal enforcement actions, and also media reports and company announcements that suggest to us an enforcement action is likely, to compile a list of possible problem banks in the public interest. In general the unofficial list has tracked the official list, although currently there more institutions on the unofficial list.