Sunday, March 31, 2019

March 2019: Unofficial Problem Bank list declined to 72 Institutions, Q1 2019 Transition Matrix

by Calculated Risk on 3/31/2019 08:12:00 AM

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

Here is the unofficial problem bank list for March 2019.

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

Update on the Unofficial Problem Bank List for March 2019. During the month, the list dropped by four to 72 institutions after four removals. Assets decreased by $1.2 billion to $51.6 billion. A year ago, the list held 98 institutions with assets of $19.9 billion.

This month, actions have been terminated against Crown Bank, Elizabeth, NJ ($505 million); Connecticut Community Bank, National Association, Westport, CT ($461 million); WestSide Bank, Hiram, GA ($128 million); and Stonebridge Bank (n/k/a LINKBANK), West Chester, PA ($84 million).

With the conclusion 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 1,742 institutions have appeared on a weekly or monthly list since the start of publication. Only 4.1 percent of the banks that have appeared on a list remain today as 1,670 institutions have transitioned through the list. Departure methods include 983 action terminations, 406 failures, 262 mergers, and 19 voluntary liquidations. Of the 389 institutions on the first published list, only 6 or 1.5 percent, are still designated as being in a troubled status more than nine years later. The 406 failures represent 23.3 percent of the 1,742 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
 
Subtractions     
  Action Terminated179(68,279,301)
  Unassisted Merger41(10,072,112)
  Voluntary Liquidation5(10,672,586)
  Failures158(186,397,337)
  Asset Change251,957
 
Still on List at 3/31/2019  61,144,050
 
Additions after
8/7/2009
  6650,478,968
 
End (3/31/2019)  7251,623,018
 
Intraperiod Removals1     
  Action Terminated804325,189,043
  Unassisted Merger22182,691,403
  Voluntary Liquidation142,558,186
  Failures248125,152,210
  Total1,287535,590,842
1Institution not on 8/7/2009 or 3/31/2019 list but appeared on a weekly list.