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Sunday, May 31, 2020

May 2020: Unofficial Problem Bank list Increased to 65 Institutions

by Calculated Risk on 5/31/2020 10:38:00 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 May 2020.

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

Update on the Unofficial Problem Bank List for May 2020. During the month, the list increased by one to 65 banks after two removals and three additions. Aggregate assets were little changed at $48.5 billion from last month. A year ago, the list held 73 institutions with assets of $54.6 billion.

Actions were terminated against Sevier County Bank, Sevierville, TN ($332 million) and Nantahala Bank & Trust Company, Franklin, NC ($157 million). Florida Capital Bank, National Association, Jacksonville, FL ($496 million); Bank of Louisiana, New Orleans, LA ($78 million); and State Bank of Nauvoo, Nauvoo, IL ($33 million). The order against the Bank of Louisiana does have a certain entertainment value, should you have time on your hands you may want to give it a read. Normally by this time after a calendar quarter-end, banks would have filed updated financials and the FDIC would have provided an update on the Official Problem Bank list, but 30 days was added to the financial filing deadline because of the COVID-19 pandemic. Look for that update in next month’s comment.