Saturday, August 29, 2020

August 2020: Unofficial Problem Bank list Increased to 66 Institutions

by Calculated Risk on 8/29/2020 01:17:00 PM

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 only, 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 2020.

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

Update on the Unofficial Problem Bank List for August 2020. During the month, the list increased by one to 66 banks after one addition. From last month, aggregate assets increased by a sizable $5.7 billion to $58.4 billion. $5.3 billion of the increase in assets came from updated asset figures from the FDIC for the second quarter of 2020. Further, the asset growth was attributable largely to a $3.7 billion increase at Deutsche Bank Trust Company Americas. A year ago, the list held 76 institutions with assets of $54.6 billion. Added this month was The First National Bank and Trust Company of Vinita, Vinita, OK ($347 million). This past Tuesday, the FDIC provided updated figures on the Official Problem Bank List. As of the second quarter of 2020, the FDIC said its list had 52 institutions with assets of $48.1 billion. Last quarter, the official list had 54 institutions with assets of $44.5 billion. Hence, there was a $3.6 billion increase in assets on the FDIC during the recent calendar quarter, which about matches that asset growth at Deutsche Bank.