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Saturday, August 31, 2013

Unofficial Problem Bank list declines to 707 Institutions

by Calculated Risk on 8/31/2013 03:51:00 PM

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

Here is the unofficial problem bank list for August 30, 2013.

Changes and comments from surferdude808:

This week, the FDIC finally released industry results for the second quarter and its enforcement actions through July. For the week, there were 11 removals and four additions. The changes leave the Unofficial Problem Bank List holding 707 institutions with assets of $250.6 billion. A year ago, the list held 891 institutions with assets of $331.5 billion. For the month, the list declined by a net 22 institutions and dropped $102 billion of assets. Monthly activity included six additions, one unassisted merger, four failures, and 23 action terminations, which was the most action terminations in a month since 25 cures in April 2012. With second quarter industry results, the FDIC said there are 559 institutions with assets of $192 billion on the Official Problem Bank List. The difference between the two lists dropped by one institution to 148. We had anticipated for the difference to narrow to about 135.

The FDIC terminated actions against Inland Bank and Trust, Oak Brook, IL ($1.0 billion); Highland Bank, Saint Michael, MN ($429 million); Community Bank of Oak Park River Forest, Oak Park, IL ($272 million); First Southwest Bank, Alamosa, CO ($237 million); Signature Bank, Bad Axe, MI ($224 million); The Union Bank, Marksville, LA ($219 million); Community Trust & Banking Company, Ooltewah, TN ($131 million); Metropolitan Bank, Oakland, CA ($128 million); Cambridge State Bank, Cambridge, MN ($69 million); Elysian Bank, Elysian, MN ($42 million); and Vermont State Bank, Vermont, IL ($17 million).

Additions this week include United International Bank, Flushing, NY ($177 million); State Bank of Taunton, Taunton, MN ($71 million); Allendale County Bank, Fairfax, SC ($59 million); and Citizens Bank of Chatsworth, Chatsworth, IL ($48 million).

Not much new to report on Capitol Bancorp Ltd. other than its outside counsel squawking at the FDIC labeling its actions "imprudent and counterproductive." Within an article published by SNL Securities - Capitol Bancorp legal rep slams FDIC's 'imprudent and counterproductive actions', Andrew Sandler, chairman of BuckleySandler LLP, said "The FDIC is operating with extraordinary powers and seems all too willing to ignore judges, experts and others in effecting closures."  Five banks controlled by Capital Bancorp have failed, which have cost the bank insurance fund an estimated 48 million. The FDIC could utilize the cross-guaranty provisions of FIRREA to assess the cost of the failures against the remaining banks controlled by Capitol Bancorp, which could lead to their failure. 
CR Note: The first unofficial problem bank list was published in August 2009 with 389 institutions. The list peaked at 1,002 institutions on June 10, 2011, and is now down to 707.