Sunday, August 27, 2017

August 2017: Unofficial Problem Bank list declines to 123 Institutions

by Calculated Risk on 8/27/2017 08:15:00 AM

Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for August 2017.

Here are the monthly changes and a few comments from surferdude808:

Update on the Unofficial Problem Bank List for August 2017.  The list shrank by a net 11 banks to 123 after twelve removals and one addition.  Aggregate assets dropped by $4½ billion to $32.8 billion.  A year ago, the list held 184 institutions with assets of $56½ billion.

Actions were terminated against Lone Star National Bank, Pharr, TX ($2.2 billion); State Bank of India (California), Los Angeles, CA ($633 million); Intercredit Bank, National Association, Miami, FL ($360 million); Central Federal Savings and Loan Association, Cicero, IL ($175 million); Alliance Bank & Trust Company, Gastonia, NC ($142 million Ticker: ABTO); Anthem Bank & Trust, Plaquemine, LA ($132 million); Community 1st Bank Las Vegas, Las Vegas, NM ($123 million); Hometown Bank of The Hudson Valley, Walden, NY ($118 million  Ticker: HTWC); People's Bank and Trust Company of Pickett County, Byrdstown, TN ($116 million); Valley Bank of Nevada, North Las Vegas, NV ($111 million); Signature Bank of Georgia, Sandy Springs, GA ($100 million); and Columbia Savings and Loan Association, Milwaukee, WI ($25 million).

The addition this month was the Farmers and Merchants State Bank of Argonia, Argonia, KS ($34 million).  In addition, the Federal Reserve issued a Prompt Corrective Action order against Heartland Bank, Little Rock, AR ($199 million), which has been on the list since December 2016.

This week the FDIC released their official Problem Bank figures for the end of the second quarter of 2017, with their list holding 105 institutions with assets of $17.2 billion, which equates to an average asset size of about $164 million.  Last quarter, the FDIC said the official list had 112 institutions with assets of $23.7 billion, which equated to an average asset size of $212 million.  Thus, during the second quarter of 2017, the FDIC removed a net seven institutions and $6.5 billion of assets from the official list.  The average asset size of the seven institutions the FDIC removed from the official list was about $929 million.  Currently, the unofficial list only has five institutions larger than $950 million; therefore, it seems a bit of a stretch for the aggregate assets on the official list to decline by $6.5 billion during the second quarter.  We know the FDIC does not like publishing the official figures, so it is unlikely they would provide us readers/analysts with an average or median asset figure to improve our understanding of the characteristics of the institutions on the official list.