Saturday, August 27, 2011

Unofficial Problem Bank list increases to 988 Institutions

by Calculated Risk on 8/27/2011 07:46:00 PM

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

Here is the unofficial problem bank list for Aug 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 released their enforcement actions through July 2011. In all, there were eight additions and four removals, which leaves the list at 988 institutions with assets of $403.0 billion compared with 984 institutions and assets of $412.5 billion last week. Asset figures were updated from 2011q1 to 2011q2, which caused aggregate assets to drop by $11.1 billion. The net of additions and removals this week caused assets to rise $1.7 billion.

For the month of August, there were 14 additions, eight unassisted mergers, seven failures, and six action terminations for a net decline of seven institutions. On a monthly basis, the list has experienced a net decline in three of the past five months mainly from a slowing of new additions, increasing unassisted mergers, and a steady pace of failures.

The removals this week were all action terminations by the FDIC against Bank of the Bluegrass and Trust Company, Lexington, KY ($219 million); CrossFirst Bank Leawood (f/k/a Town & Country Bank), Leawood, KS ($86 million); Princeville State Bank, Princeville, IL ($62 million); and Utah Community Bank, Sandy, UT ($30 million).

Among the eight additions this week are Alliance Bank, Lake City, MN ($624 million); International Finance Bank, Miami, FL ($419 million); First State Bank, Lonoke, AR ($264 million); and The Citizens Bank of Logan, Logan, OH ($256 million).

Other additions include the FDIC issuing Prompt Corrective Action orders against Central Progressive Bank, Lacombe, LA ($398 million) and SunFirst Bank, Saint George, UT ($213 million).

The following demographic changes were made to the list: First Capital Bank, Marianna, FL ($44 million) changes its name to Chipola Community Bank; Golden Coast Bank, Long Beach, CA ($41 million) changed its name to Evergreen International Bank; Atlantic Coast Bank, Waycross, GA ($804 million) moved its headquarters to Jacksonville, FL; Heritage First Bank, Orange Beach, Al ($54 million) moved its headquarters to Gulf Shores; The Palmetto Bank, Laurens, SC ($1.3 billion) moved its headquarters to Greenville; and United Trust Bank, Bridgeview, IL ($42 million) moved its headquarters to Palos Heights.
CR note: The FDIC released the Q2 Quarterly Banking Profile last week. The FDIC reported:
The number of institutions on the FDIC's "Problem List" fell for the first time in 19 quarters. The number of "problem" institutions declined from 888 to 865. This is the first time since the third quarter of 2006 that the number of "problem" banks fell. Total assets of "problem" institutions declined from $397 billion to $372 billion.
The differences are due to timing and definition. 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. (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.

Summary for Week Ending August 26th (with plenty of graphs)
Schedule for Week of Aug 28th