Tuesday, August 04, 2020

July 2020: Unofficial Problem Bank list Increased to 65 Institutions

by Calculated Risk on 8/04/2020 01:32:00 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 July 2020.

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

Update on the Unofficial Problem Bank List for July 2020. During the month, the list increased by one to 65 banks after one addition. Aggregate assets were little changed at $52.7 billion. A year ago, the list held 75 institutions with assets of $54.7 billion. Added this month was First National Bank of Muscatine, Muscatine, IA ($311 million). The OCC provided an update on July 16, 2020, it is unclear if the update dates back to May 21, 2020, which is the last preceding press release on the OCC website. Historically, the OCC has provided a monthly update, so a bi-monthly update would be a new development.