RSS Feed by Calculated Risk on 10/23/2009 09:30:00 PM
Friday, October 23, 2009
Problem Bank List (Unofficial) Oct 23, 2009
Note: A late addition: R-G Premier Bank of Puerto Rico (SEC 8-K) to be added next week ($6.5 Billion in assets, Cert# 32185). The failures today will be removed next week.
This is an unofficial list of Problem Banks.
Changes and comments from surferdude808:
There is a net four institutions added to this week’s Unofficial Problem Bank List.The list is compiled from regulator press releases or from public news sources (see Enforcement Action Type link for source). The FDIC data is released monthly with a delay, and the Fed and OTC data is more timely. The OCC data is a little lagged. Credit: surferdude808.
Overall, the institution count is 482 with aggregate assets of $321.9 billion, up from $316.6 billion last week. Additions include EuroBank, Hato Rey, PR ($2.7 billion); Cascade Bank, Everett, WA ($1.6 billion) (update: listed under "corrective action program"); Liberty Savings Bank, FSB, Wilmington, OH ($1.5 billion); Edgewater Bank, Saint Joseph, MI ($191 million); and Western Commercial Bank, Woodlands, CA ($122 million).
The sole deletion was San Joaquin Bank, Bakersfield, CA, which failed last Friday.
The only other change to the list is an FDIC issued Prompt Corrective Action order against Imperial Capital Bank, La Jolla, CA, which has been operating under a Cease & Desist Order since February 2009.
For next week’s list, we anticipate the FDIC will finally release its enforcement actions issued during September; thus, look for the list to grow by at least ten institutions.
See description below table for Class and Cert (and a link to FDIC ID system).
For a full screen version of the table click here.
The table is wide - use scroll bars to see all information!
NOTE: Columns are sortable - click on column header (Assets, State, Bank Name, Date, etc.)
Class: from FDIC
The FDIC assigns classification codes indicating an institution's charter type (commercial bank, savings bank, or savings association), its chartering agent (state or federal government), its Federal Reserve membership status (member or nonmember), and its primary federal regulator (state-chartered institutions are subject to both federal and state supervision). These codes are:Cert: This is the certificate number assigned by the FDIC used to identify institutions and for the issuance of insurance certificates. Click on the number and the Institution Directory (ID) system "will provide the last demographic and financial data filed by the selected institution".N National chartered commercial bank supervised by the Office of the Comptroller of the Currency SM State charter Fed member commercial bank supervised by the Federal Reserve NM State charter Fed nonmember commercial bank supervised by the FDIC SA State or federal charter savings association supervised by the Office of Thrift Supervision SB State charter savings bank supervised by the FDIC
Bank Failure 106: First Dupage Bank, Westmont, Illinois
by Calculated Risk on 10/23/2009 08:14:00 PM
Not quite for 1st DuPage Bank
Cruel roll of the dice.
by Soylent Green is People
From the FDIC:
First Dupage Bank, Westmont, Illinois, was closed today by the Illinois Department of Financial & Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...When the levee breaks ... seven down today ...
As of July 31, 2009, First Dupage Bank had total assets of $279 million and total deposits of approximately $254 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59 million. .... First Dupage Bank is the 106th FDIC-insured institution to fail in the Nation this year, and the seventeenth in Illinois. The last FDIC-insured institution closed in the state was Corus Bank, Chicago, on September 11, 2009.
Bank Failures 104 & 105 in Wisconsin and Minnesota
by Calculated Risk on 10/23/2009 07:11:00 PM
A flood is on horizon
The Ark is near full.
by Soylent Green is People
From the FDIC:
Bank of Elmwood, Racine, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...From the FDIC:
As of September 30, 2009, Bank of Elmwood had total assets of $327.4 million and total deposits of approximately $273.2 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $101.1 million. ... Bank of Elmwood is the 104th FDIC-insured institution to fail in the Nation this year, and the first in Wisconsin. The last FDIC-insured institution closed in the state was The First National Bank of Blanchardville, Blanchardville, on May 9, 2003
Riverview Community Bank, Otsego, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...That makes six today ...
As of August 31, 2009, Riverview Community Bank had total assets of $108 million and total deposits of approximately $80 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20 million. ... Riverview Community Bank is the 105th FDIC-insured institution to fail in the Nation this year, and the fifth in Minnesota. The last FDIC-insured institution closed in the state was Jennings State Bank, Spring Grove, on October 2, 2009.
Bank Failures 102 & 103: Two More Florida Banks
by Calculated Risk on 10/23/2009 06:10:00 PM
Florida deals gone badly
Few survivors left
by Soylent Green is People
From the FDIC:
Hillcrest Bank Florida, Naples, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...From the FDIC:
As of October 1, 2009 , Hillcrest Bank Florida had total assets of $83 million and total deposits of approximately $84 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million. ... Hillcrest Bank Florida is the 102nd FDIC-insured institution to fail in the Nation this year, and the eighth in Florida. The last FDIC-insured institution closed in the state was Partners Bank, Naples, earlier this evening.
Flagship National Bank, Bradenton, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...
As of August 31, 2009, Flagship National Bank had total assets of $190 million and total deposits of approximately $175 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59 million. ... Flagship National Bank is the 103rd FDIC-insured institution to fail in the Nation this year, and the ninth in Florida. The last FDIC-insured institution closed in the state was Hillcrest Bank Florida, Naples, which also closed today.
Bank Failure #101: American United Bank, Lawrenceville, Georgia
by Calculated Risk on 10/23/2009 05:35:00 PM
American United
We are all failed now.
by Soylent Green is People
From the FDIC:
American United Bank, Lawrenceville, Georgia, was closed today by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...The banks are small, but the loss ratios are high! Two down already ...
As of August 11, 2009, American United Bank had total assets of $111 million and total deposits of approximately $101 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $44 million. ... American United Bank is the 101st FDIC-insured institution to fail in the Nation this year, and the twentieth in Georgia. The last FDIC-insured institution closed in the state was Georgian Bank, Atlanta, on September 25, 2009.
Bank Failure #100: Partners Bank, Naples, Florida
by Calculated Risk on 10/23/2009 05:07:00 PM
The pig still in the python
Working its way through.
by Soylent Green is People
FDIC Press Release:
Partners Bank, Naples, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...Just a minnow, but it counts.
As of September 30, 2009, Partners Bank had total assets of $65.5 million and total deposits of approximately $64.9 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $28.6 million. ... Partners Bank is the 100th FDIC-insured institution to fail in the Nation this year, and the seventh in Florida. The last FDIC-insured institution closed in the state was Community National Bank of Sarasota County, Venice, on August 7, 2009.
Market, CRE Stories, and CIT Update
by Calculated Risk on 10/23/2009 04:00:00 PM
While we wait for the 100th bank failure of 2009 ...
From Doug Short of dshort.com (financial planner).
Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.
The S&P was off 1.2% today. The index is up about 60% from the bottom (and off 31% from the peak).
Two different views on CIT:
From Bloomberg: CIT Sees Recovery as Low as 6 Cents in Bankruptcy
CIT said in a regulatory filing today that if its reorganization plan fails, it “will likely face bankruptcy” and that those claims would fetch recoveries between 6 cents and 37 cents a dollar.And from MarketWatch: Icahn urges bondholders not to accept CIT plan
Icahn said if assets on the comapny's balance sheet are "run off" in a controlled way, CIT bonds will be worth at least 80 cents to 85 cents on the dollar.A few CRE stories:
Yesterday from the NY Times: Court Deals Blow to Owners of Apartment Complex
And more Tishman troubles, from Bloomberg: Tishman Speyer Office Park in L.A. Faces Foreclosure (ht Brian)
A Tishman Speyer Properties LP office park in California ... is the subject of a foreclosure lawsuit saying the owners failed to repay $154 million in debt due in July.If that LA Business Journal story is correct, the lenders were trying to sell the $150 million note for $50 million. Ouch.
Tishman Speyer and Walton Street Capital LLC bought the Campus at Playa Vista at the top of the U.S. real estate boom in 2007. KeyBank National Association sued to foreclose against limited partnerships controlling the Los Angeles property ... The Los Angeles Business Journal reported Oct. 19 that a mortgage on the property was up for sale for $50 million.
And from Bloomberg: NYC Tower Buyers Wrestle Towering Vacancy Dilemma (ht Mike In Long Island, others!)
... Worldwide Plaza [is 40% vacant]. It’s one ... George Comfort & Sons Inc., was able to buy the ... in July for $590 million, two years after it sold for almost three times as much.
The purchase price may allow Duncan to undercut the rents competitors charge as he leases his 709,000 square feet. Manhattan has 59 million feet of available offices, according to brokerage Colliers ABR, the most since June 1996, and rents for the best space are down more than 30 percent from their peak last year.
Existing Home Sales: More Activity, Little Achievement
by Calculated Risk on 10/23/2009 01:48:00 PM
Coach John Wooden
Normally a decline in inventory and the months-of-supply would be considered a positive for the existing home market, however much of the apparent recent improvement is related to an artificial - and likely short lived - boost in activity.
The following graph is a turnover ratio for existing home sales. This is annual sales and year end inventory divided by the total number of owner occupied units. For 2009, sales are estimated at 5.0 million units, and inventory at the September level.
Click on graph for larger image in new window.Although the turnover ratio has fallen from the bubble years, the level is still above the median for the last 40 years. This suggests activity in 2009 is slightly above a normal year for existing homes.
The reason turnover hasn't fallen further is because of all the distressed sales (foreclosures and short sales) primarily in the low priced areas, and because of the "first-time" home buyer tax credit.
The distressed sales activity is a necessary step towards a healthy market, but the burst in activity associated with the "first-time" home buyer tax credit is "mistaking activity for achievement".
NAR chief economist Lawrence Yun argued this morning: "[W]e need a steady supply of qualified buyers to meaningfully bring inventories down ..."
Mr. Yun is making two obvious mistakes. First he is narrowly defining "inventories" as just inventories of existing homes. The total housing inventory includes existing homes, new homes, and rental properties.
If we think of a balloon that contains existing home inventory and vacant apartment units, the tax credit is like pushing a finger on the balloon - the indent makes the balloon look smaller, but the volume of the balloon remains the same (the decline in existing home inventory is offset by an increase in vacant apartments).
Note: there is some reduction in overall inventory as new households are formed, but not from incentivizing renters to become owners.
The higher rental vacancy rate is leading to lower rents, so the buy-or-rent decision will favor renting once Congress removes their finger from the balloon.
Yun also appears to be suggesting that the first-time home buyer tax credit is providing a "supply of qualified buyers". This is bubble type thinking. Did all the exotic loans during the housing bubble provide a "supply of qualified buyers"? Those buyers qualified for the loans, but they were not really ready for homeownership.
The same is true for buyers today obtaining FHA insured loans and using the $8,000 tax credit as their downpayment. Imagine a $200,000 purchase with no money down (except the tax credit). What happens in three or four years when the homeowner wants to sell? The transaction costs will be around $15,000 (about 7.5%) if they sell for the same price.
So a homeowner, who has been unable to save a down payment so far, will be expected to make a $15,000 down payment in arrears? I don't think so.
Oh wait. Haven't prices fallen significantly? Shouldn't prices just go up from here? Yun says we are returning "to a period of normal, steady price growth". So the homeowner can use their appreciation to pay the transaction costs? That is more bubble type thinking. Prices may go up. Prices may fall further. Loans should not be predicated on asset prices increasing.
“The next mistake will be a new way to make a loan that will not be repaid.”
William Seidman, "Full Faith and Credit", 1993.
Allowing buyers to use the first-time home buyer tax credit as a downpayment is "the next mistake".
Earlier post: Existing Home Sales Increase in September
Freddie Mac: Delinquency Rate Rises to 3.33 Percent
by Calculated Risk on 10/23/2009 11:59:00 AM
NOTE: I'll have some more thoughts on existing home sales soon.
Click on graph for large image.
This graph shows the Freddie Mac single family delinquency rate since January 2005.
Here is the Freddie Mac portfolio data.
From Reuters: Freddie Mac Sept portfolio up, delinquencies jump (ht Ron at WallStreetPit)
Delinquencies ... jumped to 3.33 percent of its book of business in September from 3.13 percent in August and 1.22 percent in September 2008.
The multifamily delinquency rate accelerated slightly in September to 0.11 percent from 0.10 percent in August. A year earlier it was 0.01 percent..
Philly Fed State Coincident Indicators Show Widespread Weakness in September
by Calculated Risk on 10/23/2009 11:00:00 AM
Here is a map of the three month change in the Philly Fed state coincident indicators. Forty one states are showing declining three month activity. The index increased in 7 states, and was unchanged in 2.
Here is the Philadelphia Fed state coincident index release for September.
In the past month, the indexes increased in nine states (Idaho, Indiana, Louisiana, Montana, North Dakota, Ohio, South Dakota, Tennessee, and Vermont), decreased in 39, and remained unchanged in two (North Carolina and Nebraska) for a one-month diffusion index of -60. Over the past three months, the indexes increased in seven states (Indiana, Montana, North Dakota, Ohio, South Dakota, Tennessee, and Vermont), decreased in 41, and remained unchanged in two (Nebraska and South Carolina) for a three-month diffusion index of -68.
The second graph is of the monthly Philly Fed data of the number of states with one month increasing activity. Most of the U.S. was has been in recession since December 2007 based on this indicator.Note: this graph includes states with minor increases (the Philly Fed lists as unchanged).
A large percentage of states still showed declining activity in September.
