Saturday, March 28, 2015

Unofficial Problem Bank list decline to 349 Institutions in March, Q1 2015 Transition Matrix

by Calculated Risk on 3/28/2015 09:03:00 AM

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

Here is the unofficial problem bank list for March 2015.

Changes and comments from surferdude808:

Update on the Unofficial Problem Bank List for March 2015. During the month, the list fell from 357 institutions to 349 after nine removals and one addition. Assets dropped by $2.9 billion to an aggregate $106.2 billion. A year ago, the list held 538 institutions with assets of $174.3 billion.

Actions were terminated against First National Community Bank Dunmore, PA, ($969 million Ticker: FNCB); Colorado East Bank & Trust, Lamar, CO, ($769 million); Bay Cities Bank, Tampa, FL ($519 million); The Citizens Bank, Nashville, GA, ($259 million); Grand Bank & Trust of Florida, West Palm Beach, FL ($208 million); The Bank of Washington, Lynnwood, WA, ($152 million); Capitol National Bank, Lansing, MI ($115 million Ticker: CBCRQ); and Fox River State Bank, Burlington, WI ($73 million).

First Tuskegee Bank, Tuskegee, AL ($52 million) find its way off the list by merging with the minority-controlled Liberty Bank and Trust Company that is based in New Orleans, LA.

The addition this month was Harvest Community Bank, Pennsville, NJ ($184 million Ticker: HCBP).
Unofficial Problem Banks
With it being the end of the first quarter, we bring an update on the transition matrix. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,691 institutions have appeared on the list at some point. There have been 1,342 institutions have come and gone on the list. Departure methods include 724 action terminations, 391 failures, 213 mergers, and 14 voluntary liquidations. The first quarter of 2015 started with 401 institutions on the list, so the 48 action terminations during the quarter reduced the list by 12 percent. Although it is easier to achieve a high removal percentage given the smaller overall list count, the 12 percent quarterly removal rate is the fastest since the list has been published. Of the 389 institutions on the first published list, 45 still remain nearly six years later. The 391 failures are 23.1 percent of the 1,691 institutions that have appeared on the list. This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.
Unofficial Problem Bank List
Change Summary
  Number of InstitutionsAssets ($Thousands)
Start (8/7/2009)  389276,313,429
  Action Terminated150(57,648,218)
  Unassisted Merger36(8,760,484)
  Voluntary Liquidation4(10,584,114)
  Asset Change(4,361,945)
Still on List at 3/31/2015  4510,689,090
Additions after
End (3/31/2015)  349106,240,126
Intraperiod Deletions1     
  Action Terminated574234,619,564
  Unassisted Merger17775,762,416
  Voluntary Liquidation102,324,142
1Institution not on 8/7/2009 or 3/31/2015 list but appeared on a weekly list.