In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Sunday, October 01, 2017

September 2017: Unofficial Problem Bank list declines to 119 Institutions, Q3 2017 Transition Matrix

by Calculated Risk on 10/01/2017 08:09:00 AM

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

Here is the unofficial problem bank list for September 2017.

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

Update on the Unofficial Problem Bank List for September 2017.  During the month, the list fell a bit from 123 institutions to 119 after five removals and one addition.  Assets declined to $27.6 billion from $28.3 billion a month earlier.  A year ago, the list held 177 institutions with assets of $55.5 billion.

This month, actions have been terminated against Community Bank of Pickens County, Jasper, GA ($331 million); Commerce Bank of Arizona, Tucson, AZ ($183 million  Ticker: CBOF); The First Bank of Baldwin, Baldwin, WI ($170 million); The State Bank of Geneva, Geneva, IL ($84 million) and Champion Bank, Parker, CO ($50 million).

The addition this month was Markesan State Bank, Markesan, WI ($154 million).

With it being the end of the third 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 1,722 institutions have appeared on a weekly or monthly list at some point.  Only 6.9 percent of the banks that have appeared on a list remain today.  In all, there have been 1,603 institutions that have transitioned through the list.  Departure methods include 929 action terminations, 405 failures, 252 mergers, and 17 voluntary liquidations.  Of the 389 institutions on the first published list, only 12 or 3.1 percent still remain in a designated troubled status eight years later.  The 405 failures represent 23.5 percent of the 1,722 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 Terminated175(64,753,748)
  Unassisted Merger40(9,818,439)
  Voluntary Liquidation4(10,584,114)
  Asset Change(517,200)
Still on List at 9/30/2017  124,242,591
Additions after
End (9/30//2017)  11927,635,430
Intraperiod Removals1     
  Action Terminated754312,105,466
  Unassisted Merger21281,200,015
  Voluntary Liquidation132,515,855
1Institution not on 8/7/2009 or 9/30/2017 list but appeared on a weekly list.