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Sunday, February 26, 2012

Unofficial Problem Bank list increases to 960 Institutions

by Calculated Risk on 2/26/2012 09:18:00 AM

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

Here is the unofficial problem bank list for Feb 24, 2012. (table is sortable by assets, state, etc.)

Changes and comments from surferdude808:

As anticipated, the FDIC released its enforcement actions for January 2012 this Friday. Moreover, after playing footsie with community bankers last week as part of an effort to stem proposed Congressional action to broaden the examination appeal process, the FDIC got back to closing a couple this week. The release of these actions and closings contributed to many changes in the Unofficial Problem Bank List. In all, this week there were four removals and eight additions, which leave the list at 960 institutions with assets of $389.7 billion. A year ago, the list held also held 960 institutions but assets were higher at $413.8 billion.

With this being the last Friday of the month, it is time to review changes for the month. After experiencing declines in the number of institutions each month since July 2011, the list count increased by four institutions during February 2012. While the increase in assets of $649 million during the month was small, it was the first increase in total assets since October 2011. Other interesting factoids include the absence of any unassisted mergers during the month, which has not happened since November 2010; and the monthly additions of 16 are the highest since 18 institutions were added in October 2011.

Removals this week include two rehabilitations -- Ridgestone Bank, Brookfield, WI ($423 million) and Fireside Bank, Pleasanton, CA ($278 million Ticker: KMPR); and two failures -- Home Savings of America, Little Falls, MN ($440 million) and Central Bank of Georgia, Ellaville, GA ($276 million).

Among the eight additions are Britton & Koontz Bank, N.A., Natchez, MS ($371 million Ticker: BKBK); Crown Bank, Edina, MN ($258 million); Rabun County Bank, Clayton, GA ($248 million); and Farmers & Merchants Bank, Statesboro, GA ($231 million). After 76 failures, inclusive of the one tonight, many might think there are not any banks left in Georgia to turn bad.

Other changes to the list include the FDIC issuing Prompt Corrective Action orders against 1st Commerce Bank, North Las Vegas, NV ($32 million); First Carolina State Bank, Rocky Mount, NC ($90 million); Pisgah Community Bank, Asheville, NC ($30 million); Sunrise Bank, Valdosta, GA ($86 million); and Sunrise Bank of Albuquerque, Albuquerque, NM ($61 million). All five banks are controlled by Capitol Bancorp, Ltd., which has divested or merged 45 institutions that were under its control during the crisis. Capitol has pending sale agreements for two of the banks just issued PCA orders. Should any bank controlled by Capitol fail, the other 18 banks controlled by Capitol could be liable for the resolution cost should the FDIC decide to apply cross guaranty. The FDIC did not apply cross guaranty to Capitol back in November 2009, when Commerce Bank of Southwest Florida failed, which cost the FDIC insurance fund approximately $31 million.

Next week, the FDIC will likely release its quarterly financial performance report for the fourth quarter of 2010, which will include an update on the Official Problem Bank List figures.
Cumulative Bank Failures per weekClick on graph for larger image.

This graph shows the cumulative bank failures for each year starting in 2008. There have been 425 bank failures since the beginning of 2008, and so far, closings this year are running at about half the rate of 2010.

Summary for Week ending February 24th
Schedule for Week of February 26th