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Saturday, May 31, 2014

Unofficial Problem Bank list declines to 496 Institutions

by Calculated Risk on 5/31/2014 05:11:00 PM

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

Here is the unofficial problem bank list for May 30, 2014.

Changes and comments from surferdude808:

As expected, the FDIC provided an update on its enforcement actions through April 2014 and released industry results for 1q2014. Unexpectedly, there was a bank failure for the third consecutive week, which last occurred in October/November 2012. For the week, there were six removals and three additions that leave the Unofficial Problem Bank List at 496 institutions with assets of $154.1 billion. Asset figures were updated through 1q2014. For the first time since the list has been published, updated quarterly asset figures led to an increase in assets of $794 million. Usually, problem banks shrink their balance sheet as a tactic to increase their capital ratios. A year ago, the list held 761 institutions with assets of $277.2 billion. During May 2014, the list declined by 17 institutions after 16 action terminations, three failures, one merger and three additions.

Actions were terminated against Macon Bank, Inc., Franklin, NC ($789 million); State Bank of Countryside, Countryside, IL ($589 million); Freedom Bank, Inc., Belington, WV ($150 million); Savoy Bank, New York, NY ($103 million); and First Security Trust Bank, Inc., Florence, KY ($82 million).

Slavie Federal Savings Bank, Bel Air, MD ($140 million) was the ninth institution to fail this year. Also, Slavie Federal was the ninth institution to fail in Maryland since the on-set of the Great Recession.

Added this week were GSL Savings Bank, Guttenberg, NJ ($100 million); Grant County Deposit Bank, Williamstown, KY ($79 million); and Columbus Junction State Bank, Columbus Junction, IA ($56 million). The last time three institutions were added during a week was back on October 4, 2013. The FDIC also issued a Prompt Correction Action order against State Bank of Herscher, Herscher, IL ($149 million) and Highland Community Bank, Chicago, IL ($64 million).

The FDIC told us there are now officially 411 problem institutions with assets of $126 billion. The spread between the official and unofficial count narrowed to 85 from 99 last quarter and assets to $28 billion from $29 billion. Next week will likely be quiet nor do we think there will be a failure for a fourth consecutive week.
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 496.