by Calculated Risk on 8/21/2009 07:09:00 PM

A mushroom cloud forms
Deep in the heart of Texas
Guaranty is ash
by Soylent Green is People
From the FDIC: BBVA Compass, Birmingham, Alabama, Assumes All of the Deposits of Guaranty Bank, Austin, Texas

Guaranty Bank, Austin, TX was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of June 30, 2009, Guaranty Bank had total assets of approximately $13 billion and total deposits of approximately $12 billion. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3 billion. ... Guaranty Bank is the 81st FDIC-insured institution to fail in the nation this year, and the second in Texas. The last FDIC-insured institution closed in the state was Millennium State Bank of Texas, Dallas, July 2, 2009.

Added by request from Soylent Green is People:

by Calculated Risk on 8/21/2009 06:10:00 PM

Birmingham failure
Georgia, running out of banks?
South will sink again...
by Soylent Green is People
From the FDIC: United Bank, Zebulon, Georgia, Assumes All of the Deposits of First Coweta, Newnan, Georgia

First Coweta, Newnan, Georgia was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver....

As of July 31, 2009, First Coweta had total assets of $167 million and total deposits of approximately $155 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $48 million. ... First Coweta is the 79th FDIC-insured institution to fail in the nation this year, and the eighteenth in Georgia. The last FDIC-insured institution closed in the state was ebank, Atlanta, earlier today.

From the FDIC: IBERIABANK, Lafayette, Louisiana, Assumes All of the Deposits of CapitalSouth Bank, Birmingham, Alabama

CapitalSouth Bank, Birmingham, Alabama, was closed today by the Alabama State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of June 30, 2009, CapitalSouth Bank had total assets of $617 million and total deposits of approximately $546 million....

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $151 million. ... CapitalSouth Bank is the 80th FDIC-insured institution to fail in the nation this year, and the second in Alabama. The last FDIC-insured institution closed in the state was Colonial Bank, Montgomery, on August 14, 2009.

by Calculated Risk on 8/21/2009 05:15:00 PM

Once Internet fave
Ebank has been pushed off-line
Now mere vapor ware.
by Soylent Green is People
From the FDIC: Stearns Bank, National Association, St. Cloud, Minnesota, Assumes All of the Deposits of ebank Atlanta, Georgia

ebank, Atlanta, Georgia, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of July 10, 2009, ebank had total assets of $143 million and total deposits of approximately $130 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $63 million. ... ebank is the 78th FDIC-insured institution to fail in the nation this year, and the seventeenth in Georgia. The last FDIC-insured institution closed in the state was Security Bank of Jones County, Gray, on July 24, 2009.

The costs to the DIF are esimtated at 44% of assets. Ouch.

It is Friday!

by Calculated Risk on 8/21/2009 04:00:00 PM

NEW Problem Bank List (Unofficial) Aug 21, 2009

Note: Market Graph at bottom ...

NOTE: the months line up with the lines on the following two graphs - sorry if that was confusing.

Click on graph for larger image in new window.

Here is another graph of inventory. This graph shows inventory since 2002 by year.

The dotted lines (2002 - 2004) are for the boom years. 2005 (dashed green) is the transition year at the end of the boom. And the solid colors are for the bust years.

The second graph shows months of supply for the same years.

Although inventory and months of supply are lower than in 2007 and 2008, the levels are still very high.

It is important to watch inventory levels very carefully. If you look at the 2005 inventory data, instead of staying flat for most of the year (like the previous bubble years), inventory continued to increase all year. That was one of the key signs that led me to call the top in the housing market!

Note: there is probably a substantial shadow inventory – foreclosures coming as shown by the MBA delinquency survey yesterday, and homeowners wanting to sell, but waiting for a better market - so existing home inventory levels will probably stay elevated for some time. There are also reports of REOs being held off the market, so inventory is probably under reported.

The third graph shows the year-over-year change in existing home inventory.

My guess is prices will probably continue to fall until the months of supply reaches more normal levels (closer to 6 months compared to the current 9.4 months), and that will take some time.

However this general trend of declining year-over-year inventory levels is a positive for the housing market (while remembering the shadow inventory).


Here is the market graph from Doug Short, Doug Short matching up the market bottoms for four crashes (with an interim bottom for the Great Depression).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

by Calculated Risk on 8/21/2009 02:30:00 PM

This is an unofficial list of Problem Banks. Note: Reports are Guaranty (Texas) will be seized this afternoon.

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. The Fed and OTC data is more timely, and the OCC a little lagged. Credit: surferdude808.

Changes and comments from surferdude808:

While the number of institutions on the problem bank list only declined by a net one to 391 from 392 a week ago, there was a sizable decline in assets of $26b with the closures of Colonial Bank ($26.4b) and Community Bank of Nevada ($1.6b) on August 14th. Of the three other failures last Friday, two -- Union Bank, N.A., and Dwelling House S&L -- were under formal enforcement action while Community Bank of Arizona failed without being subject to a formal enforcement action or prompt corrective action order.

There are three additions during the week including the Savings Bank of Maine ($983.6m), Gardiner, ME; Royal Bank America ($735.2m), Narbeth, PA; and First Home Savings Bank ($241.7m), Mountain Grove, MO.

With the addition of a Maine based institution, 46 states and D.C. are represented on the problem list with only Alaska, Hawaii, New Hampshire, Vermont, and West Virginia not having an institution headquartered within their respective borders subject to formal enforcement action. Unlike the other five states, West Virginia did have a failure in 2008.

One other formal action issued during the week that may be from the twilight zone, the OTS issued a prompt corrective action order against Guaranty Bank on August 19th. With the numerous media reports circulating about the imminent closure of Guaranty Bank, what is the usefulness of a PCA order at the stage of the game?

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.

See description below table for Class and Cert (and a link to FDIC ID system).

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:

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

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".