Sunday, September 01, 2019

August 2019: Unofficial Problem Bank list increased to 76 Institutions

by Calculated Risk on 9/01/2019 09:41:00 AM

The FDIC's official problem bank list is comprised of banks with a CAMELS rating of 4 or 5, and the list is not made public (just the number of banks and assets every quarter). Note: Bank CAMELS ratings are also not made public.

CAMELS is the FDIC rating system, and stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. The scale is from 1 to 5, with 1 being the strongest.

As a substitute for the CAMELS ratings, surferdude808 is using publicly announced formal enforcement actions, and also media reports and company announcements that suggest to us an enforcement action is likely, to compile a list of possible problem banks in the public interest.

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 August 2019.

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

Update on the Unofficial Problem Bank List for August 2019. During the month, the list increased by a net of one institution to 76 banks after three removals and two additions. Aggregate assets were little changed finishing the month at $55.6. A year ago, the list held 82 institutions with assets of $57.3 billion. This month, FDIC terminated against Enterprise Bank of South Carolina, Ehrhardt, SC ($336 million) and Talbot State Bank, Woodland, GA ($60 million). Added this month was Citizens Bank & Trust Co., Marks, MS ($143 million); The First National Bank of Hope, Hope, KS ($83 million); and Independence Bank, East Greenwich, RI ($66 million).
The first unofficial problem bank list was published in August 2009 with 389 institutions. The number of unofficial problem banks grew quickly and peaked at 1,003 institutions in July, 2011 - and then steadily declined to below 100 institutions.