RSS Feed by Calculated Risk on 6/04/2010 11:03:00 PM
Friday, June 04, 2010
Unofficial Problem Bank List: Assets increase sharply
Earlier employment posts today:
This is an unofficial list of Problem Banks compiled only from public sources.
Here is the unofficial problem bank list for June 4, 2010.
Changes and comments from surferdude808:
The Unofficial Problem Bank List finishes the week unchanged in terms of the number of institutions at 762, but there was a substantial increase in assets to $385.9 billion from $369.2 billion.CR note: The FDIC reported there were 775 institutions with assets of $431 billion on the official problem bank list at the end of Q1. There are some timing issues, but the overall number of institutions on the unofficial list is very close to the official list. The addition of Firstbank of Puerto Rico has closed the asset gap, but there is the possibility that a large regional bank may be on the official problem bank list.
There were four additions this week including Firstbank of Puerto Rico, Santurce, PR ($18.8 billion Ticker: FBP); Home Savings of America, Little Falls, MN ($472 million); Builders Bank, Chicago, IL ($464 million); and the Bank of Little Rock, Little Rock, AR ($185 million).
Removals include the failed TierOne Bank ($2.8 billion Ticker: TONE) and Arcola Homestead Savings Bank ($17 million). Other removals are from the OCC terminating Formal Agreements against Valley National Bank, Espanola, NM ($337 million) and Standing Stone National Bank, Lancaster, OH ($74 million). However, it is likely these removals will be short-lived as the OCC has frequently replaced a terminated Formal Agreement with a Consent Order during this banking crisis.
We are anticipating the OCC will release its enforcement actions for May by next Friday
Bank Failure #81: TierOne Bank, Lincoln, Nebraska
by Calculated Risk on 6/04/2010 07:06:00 PM
How have the mighty fallen.
Free falling from peak.
by Soylent Green is People
From the FDIC: Great Western Bank, Sioux Falls, South Dakota, Assumes All of the Deposits of TierOne Bank, Lincoln, Nebraska
As of March 31, 2010, TierOne Bank had approximately $2.8 billion in total assets and and $2.2 billion in total deposits. ...I guess they weren't top tier ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $297.8 million. ... TierOne Bank is the 81st FDIC-insured institution to fail in the nation this year, and the first in Nebraska. The last FDIC-insured institution closed in the state was Sherman County Bank, Loup City, on February 13, 2009.
Bank Failure #80: Arcola Homestead Savings Bank, Arcola, Illinois
by Calculated Risk on 6/04/2010 06:08:00 PM
From the FDIC: FDIC Approves the Payout of the Insured Deposits of Arcola Homestead Savings Bank, Arcola, Illinois
The FDIC was unable to find another financial institution to take over the banking operations of Arcola Homestead Savings Bank....No one wanted this one ...
As of March 31, 2010, Arcola Homestead Savings Bank had approximately $17.0 million in total assets and $18.1 million in total deposits. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.2 million. Arcola Homestead Savings Bank is the 80th FDIC-insured institution to fail in the nation this year, and the twelfth in Illinois. The last FDIC-insured institution closed in the state was Midwest Bank and Trust Company, Elmwood Park, on May 14, 2010.
Bank Failure #79: First National Bank, Rosedale, Mississippi
by Calculated Risk on 6/04/2010 05:02:00 PM
From the FDIC: The Jefferson Bank, Fayette, Mississippi, Assumes All of the Deposits of First National Bank, Rosedale, Mississippi
As of March 31, 2010, First National Bank had approximately $60.4 million in total assets and $63.5 million in total deposits. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $12.6 million. ... First National Bank is the 79th FDIC-insured institution to fail in the nation this year, and the first in Mississippi. The last FDIC-insured institution closed in the state was Bank of Falkner, Falkner, on September 29, 2000.
Fannie Mae economist: House "price appreciation not supportable" and more
by Calculated Risk on 6/04/2010 04:00:00 PM
“Temporary tax credits change behavior temporarily. It’s simply shifted
demand forward. ... It actually created some price appreciation that’s not
supportable long term.”
Douglas Duncan, Fannie Mae Chief Economist, June 4, 2010 via Bloomberg (ht Brian)
And more on condo shadow inventory in New York from Bloomberg: Manhattan Empty Condos May Be Rentals as Leases Reign (ht Mike In Long Island)
About 8,700 new condos sit empty in Manhattan, with 75 percent not even listed for sale yet ... Developers taking out construction loans borrow an additional amount for interest reserves, which is intended to cover the monthly payments on the loan while the project is under construction and until sales begin ... reserves on loans made in 2007 and 2008 will dwindle in the second half of 2010 and early 2011.We've discussed this before - the flood comes when the interest reserves run dry.
The euro is down to 1.196 dollars. This is the lowest level since March 2006.
The TED spread increased to 41.59 (a measure of credit stress). This is still fairly low, but this is the highest level in eleven months. Note: This is the difference between the interbank rate for three month loans and the three month Treasury. The peak was 463 on Oct 10th and a normal spread is below 50 bps.
Click on graph for larger image in new window.This is a slightly different graph from Doug Short of dshort.com (financial planner).
This graph shows the ups and downs of the market since the high in 2007.
Earlier employment posts today:
