Sunday, February 02, 2020

January 2020: Unofficial Problem Bank list Decreased to 64 Institutions

by Calculated Risk on 2/02/2020 11:10:00 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 January 2020.

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

Update on the Unofficial Problem Bank List for January 2020. During the month, the list declined by three to 64 banks after four removals and one addition. Aggregate assets were little changed at $51.3 billion. A year ago, the list held 78 institutions with assets of $55.2 billion.

Enforcement actions were terminated against First Community National Bank, Cuba, MO ($130 million); SunSouth Bank, Dothan, AL ($107 million); Lafayette State Bank, Mayo, FL ($106 million); and Sunrise Bank Dakota, Onida, SD ($52 million). Added this month was Texas Citizens Bank, National Association, Pasadena, TX ($521 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 has steadily declined since then to below 100 institutions.