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Saturday, December 17, 2011

Unofficial Problem Bank list declines to 974 institutions

by Calculated Risk on 12/17/2011 04:49:00 PM

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

Here is the unofficial problem bank list for Dec 16, 2011. (table is sortable by assets, state, etc.)

Changes and comments from surferdude808:

After a four week hiatus, the FDIC got back to closings. Also, the OCC got back to releasing its enforcement activities on the first Friday after the 15th of the month. As a result, there were several changes to the Unofficial Problem Bank List this week. In all, there were five removals and two additions, which leave the list standing at 974 institutions with assets of $398.3 billion. A year ago, the list held 920 institutions with assets of $411.4 billion.

The removals include one cure, two unassisted mergers, and two failures. The OCC terminated an action against BNC National Bank, Glendale, AZ ($667 million Ticker: BNCC). Viking Bank, Seattle, WA ($387 million) and AmericaUnited Bank and Trust Company USA, Schaumburg, IL found merger partners. The two failures were Western National Bank, Phoenix, AZ ($163 million) and Premier Community Bank of the Emerald Coast, Crestview, FL ($126 million).

Given the calendar, the FDIC is likely [finished] with closings in 2011. If so, the year will end with 92 failures at an initial estimated cost of $7.2 billion for liquidating assets of $35.9 billion, which translates into a resolution cost of about 20% of failed bank assets. Buyers were willing to pay a deposit premium in only 22 of the resolutions and loss share agreements were done in 57 resolutions covering $17.9 billion of failed assets acquired.

The additions include First Federal Savings and Loan Association of McMinnville, McMinnville, OR ($346 million) and SouthernTrust Bank, Goreville, IL ($52 million).

The OCC converted a few Formal Agreements or previously OTS issued Supervisory Agreements to Consent Orders. Next Friday, we anticipate the FDIC will release its enforcement action activity for the month of November.
Bank FailuresClick on graph for larger image.

Here is a graph of bank failures by week (cumulative) for the last several years.

In 2008, 25 banks failed, 140 banks failed in 2009, 157 in 2010, and 92 in 2011. As "surferdude" noted, this is probably the last of the closings for 2011.

Summary for Week ending Dec 16th
Schedule for Week of Dec 18th