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Saturday, January 14, 2012

Unofficial Problem Bank List and Quarterly Transition Matrix

by Calculated Risk on 1/14/2012 07:36:00 PM

This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for Jan 13, 2012. (table is sortable by assets, state, etc.)

Changes and comments from surferdude808:

Minor changes were made to the Unofficial Problem Bank List this week. There were two removals and one addition, which leave the list with 969 institutions and assets of $391.2 billion. A year ago, there were 933 institutions with assets of $410.4 billion on the list.

Removals were Heritage First Bank, Gulf Shores, AL ($55 million), which merged on an unassisted basis with Merchants & Marine Bank, Pascagoula, MS; and CrediCard National Bank, Tucson, AZ ($66 thousand), which closed through a voluntary liquidation. Next week, we anticipate for the OCC to release its latest actions.

With the conclusion of the fourth quarter of 2011, it is time to update the Unofficial Problem Bank List transition matrix. The list debuted on August 7, 2009 with 389 institutions with assets of $276.3 billion (see table). Over the past 29 months, about 57 percent or 222 institutions have been removed from the original list with 136 from failure, 66 from action termination, 19 from unassisted merger, and one from voluntary liquidation. About 35 percent of the 389 institutions on the original list have failed, which is substantially higher than the 12 percent figure usually cited by the media as the failure rate for institutions on the FDIC Problem Bank List.

Since the publication of the original list, another 1,089 institutions have been added. However, only 803 of those 1,089 additions remain on the current list as 286 institutions have been removed in the interim. Of the 286 inter-period removals, 165 were from failure, 66 were from an unassisted merger, 51 from action termination, and four from voluntary liquidation.

In total, 1,478 institutions have made an appearance on the Unofficial Problem Bank List and 301 or 20.4 percent have failed. Of the 508 total removals, the primary way of exit from the list is failure at 301 institutions or 59 percent. Only 117 or around 23 percent have been able to rehabilitate themselves to see their respective action terminated. Alternatively, another 85 or nearly 17 percent found merger partners most likely to avoid failure. Total assets that have appeared on the list amount to $784.9 billion and $277.9 billion have been removed due to failure. The average asset size of removals from failure is $923 million.
Unofficial Problem Bank List
Change Summary
 Number of InstitutionsAssets ($Thousands)
Start (8/7/2009) 389 276,313,429
 Action Terminated66(15,433,115)
 Unassisted Merger19 (3,290,170)
 Voluntary Liquidation1(4,840,599)
 Asset Change  (16,554,637)
Still on List at 6/24/2011 16757,674,574
Additions 803 333,514,539
End (12/31/2011) 970391,189,113
Intraperiod Deletions1   
 Action Terminated5132,654,782
 Unassisted Merger66 41,813,131
 Voluntary Liquidation4 1,213,876
 Failures165 99,366,764
 Total286 175,048,553
1Institutions not on 8/7/2009 or 12/31/2011 list but appeared on a list between these dates.

Summary for Week Ending January 13th
Schedule for Week of Jan 15th