by Calculated Risk on 12/29/2019 11:19:00 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 December 2019.

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

Update on the Unofficial Problem Bank List for December2019. During the month, the list increased by two to 67 institutions after one removal and three additions. Assets increased by $104 million to $51.1 billion. A year ago, the list held 78 institutions with assets of $53.9 billion.

This month, the action against The First National Bank of Scott City, Scott City, KS ($116 million) was terminated. Added this month was First National Bank in Fairfield, Fairfield, IA ($145 million); KansasLand Bank, Quinter, KS ($53 million); and The First National Bank of Fleming, Fleming, CO ($22 million). The FDIC issued a Prompt Corrective Action order against The Farmers Bank, Carnegie, OK ($91 million).

With the conclusion of the fourth 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, 1,757 institutions have appeared on a weekly or monthly list since the start of publication. Only 3.8 percent of the banks that have appeared on a list remain today as 1,690 institutions have transitioned through the list. Departure methods include 996 action terminations, 409 failures, 266 mergers, and 19 voluntary liquidations. Of the 389 institutions on the first published list, only 5 or 1.3 percent, are still designated as being in a troubled status more than ten years later. The 409 failures represent 23.3 percent of the 1,757 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 Institutions	Assets ($Thousands)
Start (8/7/2009)		389	276,313,429
Subtractions
	Action Terminated	180	(68,469,804)
	Unassisted Merger	41	(10,072,112)
	Voluntary Liquidation	5	(10,672,586)
	Failures	158	(186,397,337)
	Asset Change		587,539
Still on List at 12/31/2019		5	1,289,129
Additions after 8/7/2009		62	49,858,328
End (12/31/2019)		67	51,147,457
Intraperiod Removals1
	Action Terminated	816	326,978,159
	Unassisted Merger	225	84,625,963
	Voluntary Liquidation	14	2,558,186
	Failures	251	125,351,580
	Total	1,306	539,513,888
1Institution not on 8/7/2009 or 12/31/2019 list but appeared on a weekly list.