Sunday, June 30, 2013

Unofficial Problem Bank list declines to 749 Institutions, Q2 Transition Matrix

by Calculated Risk on 6/30/2013 09:54:00 AM

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

Here is the unofficial problem bank list for June 28, 2013.

Changes and comments from surferdude808:

With the FDIC releasing its enforcement actions through May 2013, there were many changes to the Unofficial Problem Bank List. For the week, there were seven removals and five additions that leave the at 749 institutions with assets of $273.3 billion. For the month of June, the list fell by a net 12 institutions after seven additions, seven action terminations, six unassisted mergers, five failures, and one voluntary liquidation. Assets fell by $4.02 billion, which is the smallest decline since a $3.99 billion in November 2012. In addition, there was a noticeable slowdown in action terminations, which were last at this level in November 2011.

This week actions were terminated against Farmers Bank, Ault, CO ($232 million); Peoples Bank & Trust Company, Owenton, KY ($64 million); Lakeview Bank, Lakeville, MN ($54 million); Park State Bank, Duluth, MN ($30 million); and Roxbury Bank, Roxbury, KS ($14 million). Also, the FDIC terminated a Prompt Corrective Action order against First Sound Bank, Seattle, WA ($123 million), but it is still subject to a Consent Order. Other removals from finding merger partners include First National Bank of Illinois, Lansing, IL ($374 million) and Community State Bank, Norwalk, WI ($24 million).

Additions this week were Bay Cities Bank, Tampa, FL ($534 million); Oswego Community Bank, Oswego, IL ($194 million); SunSouth Bank, Dothan, AL ($178 million); VistaBank, Aiken, SC ($109 million); and First State Bank of Swanville, Swanville, MN ($30 million).

As promised last week, we have updated the transition matrix with the passage of the second quarter of 2013. Full details may be found in the accompanying table. As depicted, there have been a total of 1,644 institutions with assets of $811.4 billion that have appeared on the list. A little more the 54 percent of the institutions that have appeared on the list have been removed. A total of 895 institutions are no longer on the list. Since the publishing start of this list in 2009, failure has been the primary manner of exit; however, at this point, terminations are now responsible for more removals at 377. Close behind are failures at 363 while finding a merger partner has been responsible for 144 removals. While failures have slipped as the primary form of exit from the list, the amount of assets removed for failure total $292.6 billion, which dwarfs $164.4 billion in assets from institutions where actions were terminated.

As discussed above, there was a discernible slowdown in the pace of action terminations this month and quarter. There were 34 terminations during the quarter, which represented 4.5 percent of the 757 institutions that were on the list at the start of the quarter. During the first quarter of 2013, the termination rate was 6.1 percent. The 34 terminations were the lowest quarterly count since 32 in the first quarter of 2012. There were 108 institutions still hanging around from the original publication at the start of the second quarter of 2013, but only four were removed this quarter because of action termination, which was a much lower termination rate of 3.7 percent. The transition methods of the 389 institutions on the original list in August 2009 does differ significantly from the pool of subsequent additions.
Unofficial Problem Bank List
Change Summary
 Number of InstitutionsAssets ($Thousands)
Start (8/7/2009) 389276,313,429
 
Subtractions   
 Action Terminated108(31,933,282)
 Unassisted Merger27(4,452,830)
 Voluntary Liquidation4(10,584,114)
 Failures150(183,316,242)
 Asset Change (8,734,399)
 
Still on List at 6/30/2013 10037,292,562
 
Additions 649235,975,860
 
End (6/30/2013) 749273,268,422
 
Intraperiod Deletions1   
 Action Terminated269132,439,197
 Unassisted Merger11755,560,134
 Voluntary Liquidation71,760,816
 Failures213109,331,508
 Total606299,091,655
1Institution not on 8/7/2009 or 6/30/2013 list but appeared on a weekly list.