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Saturday, March 26, 2016

March 2016: Unofficial Problem Bank list declines to 222 Institutions, Q1 2016 Transition Matrix

by Calculated Risk on 3/26/2016 11:21:00 AM

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

Here is the unofficial problem bank list for March 2016.

Changes and comments from surferdude808:

Update on the Unofficial Problem Bank List for March 2016. During the month, the list fell from 228 institutions to 222 after eight removals and two additions. Assets dropped by $1.4 billion to an aggregate $64.6 billion. A year ago, the list held 349 institutions with assets of $106.2 billion.

This month, actions have been terminated against Bank of Washington, Washington, MO ($599 million); Community First Bank, Inc., Walhalla, SC ($355 million); Union National Bank and Trust Company of Elgin, Elgin, IL ($311 million); First State Bank, Mesquite, TX ($172 million Ticker: CFOK); American Bank of Baxter Springs, Baxter Springs, KS ($91 million); Freedom Bank, Columbia Falls, MT ($58 million); and Pacific West Bank, West Linn, OR ($54 million Ticker: PWBO).

North Milwaukee State Bank, Milwaukee, WI ($67 million) exited the list through failure on March 11, 2016. This is first failed bank since October 2, 2015.

The additions this month were both from Kentucky -- Peoples Bank & Trust Company of Hazard, Hazard, KY ($278 million) and Blue Grass Federal Savings and Loan Association, Paris, KY ($38 million). Perhaps in a few months, the list will begin to see new additions from banks operated in local economies where the oil & gas industry is a large driver.
Unofficial Problem Banks
With it being the end of the first quarter, we bring an updated transition matrix to detail how banks are moving off the Unofficial Problem Bank List. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,705 institutions have appeared on a weekly or monthly list at some point. There have been 1,483 institutions that have transitioned through the list. Departure methods include 837 action terminations, 396 failures, 236 mergers, and 14 voluntary liquidations. The first quarter of 2015 started with 250 institutions on the list, so the 28 action terminations during the quarter reduced the list by 11.2 percent. Of the 389 institutions on the first published list, 26 or 6.7 percent still remain more than six years later. The 396 failures represent 23.2 percent of the 1,705 institutions that have made an appearance on the list. This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.
Unofficial Problem Bank List
Change Summary
  Number of InstitutionsAssets ($Thousands)
Start (8/7/2009)  389276,313,429
  Action Terminated162(61,658,424)
  Unassisted Merger40(10,183,639)
  Voluntary Liquidation4(10,584,114)
  Asset Change(2,514,219)
Still on List at 3/31/2016  266,569,584
Additions after
End (3/31//2016)  22264,619,393
Intraperiod Deletions1     
  Action Terminated675276,185,701
  Unassisted Merger19678,425,969
  Voluntary Liquidation102,324,142
1Institution not on 8/7/2009 or 3/31/2016 list but appeared on a weekly list.