Saturday, October 25, 2014

Unofficial Problem Bank list declines to 423 Institutions

by Calculated Risk on 10/25/2014 11:01:00 AM

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

Here is the unofficial problem bank list for Oct 24, 2014.

Changes and comments from surferdude808:

It was the fourth time in 2014 for the FDIC to close a bank on back-to-back weeks. Other than the failure, two other removals pushed the Unofficial Problem Bank List count down to 423 institutions with assets of $133.4 billion. A year ago, the list held 670 institutions with assets of $234 billion.

Northwestern Bank, Traverse City, MI ($849 million) and The First National Bank of Wyoming, Wyoming, DE ($302 million) found their way off the list through unassisted mergers.

The National Republic Bank of Chicago, Chicago, IL ($994 million) failed after operating under a formal action since April 2010 and a Prompt Corrective Action order since July 2014. This is the fifth bank headquartered in Illinois to fail this year and the 61st failure in the state since the onset of the Great Recession. Acquiring the bank in the assisted transaction was State Bank of Texas, Dallas, Texas, with has assets of $413 million. Usually the FDIC does not like an acquirer to be so much smaller than and this far away geographically from the failed bank. So it looks like these issues were deemed not as important as maintaining the minority ownership status of the failed assets.

Next week, we anticipate the FDIC to release an update on its enforcement action activities through September 2014.
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 423.