Sunday, June 30, 2019

June 2019: Unofficial Problem Bank list increased to 76 Institutions, Q2 2019 Transition Matrix

by Calculated Risk on 6/30/2019 08:11:00 AM

Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources. DISCLAIMER: This is an unofficial list, the information is from public sources and while deemed to be reliable is not guaranteed. No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein and same is subject to errors and omissions. This is not intended as investment advice. Please contact CR with any errors.

Here is the unofficial problem bank list for June 2019.

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

Update on the Unofficial Problem Bank List for June 2019. During the month, the list increased by three to 76 institutions after a removal and three additions. Assets changed by a nominal $322 million to $55 billion. A year ago, the list held 92 institutions with assets of $60 billion.

This month, the action against First Southern Bank (f/k/a The Patterson Bank), Patterson, GA ($123 million) was terminated. Additions this month included The Farmers Bank, Carnegie, OK ($121 million); Home Bank of Arkansas, Portland, AR ($76 million); and State Bank, Green River, WY ($29 million). Also, thanks to a reader that identified an institution not included within the list – CornerstoneBank, Atlanta, GA ($219 million), that has been operating under a Consent Order since 2012.

With the conclusion of the second quarter, we bring an updated transition matrix to detail how banks are transitioning off the Unofficial Problem Bank List. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, 1,747 institutions have appeared on a weekly or monthly list since the start of publication. Only 4.2 percent of the banks that have appeared on a list remain today as 1,671 institutions have transitioned through the list. Departure methods include 984 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 1,747 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 Change345,554
 
Still on List at 6/30/2019  61,237,647
 
Additions after
8/7/2009
  7053,790,865
 
End (6/30/2019)  7655,028,512
 
Intraperiod Removals1     
  Action Terminated805325,312,142
  Unassisted Merger22182,691,403
  Voluntary Liquidation142,558,186
  Failures248125,152,210
  Total1,288535,731,941
1Institution not on 8/7/2009 or 6/30/2019 list but appeared on a weekly list.