by Calculated Risk on 8/16/2014 08:11:00 AM

This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for Aug 15, 2014.

Changes and comments from surferdude808:

As expected, the OCC provided an update on its enforcement action activities today, which contributed to several changes to the Unofficial Problem Bank List. In all, there were four removals and two additions that leave the list at 447 institutions with assets of $142.1 billion. A year ago, the list held 717 institutions with assets of $253.9 billion.

Actions were terminated against NorStates Bank, Waukegan, IL ($392 million Ticker: NSFC); First National Bank, Ronceverte, WV ($237 million Ticker: FBSW); Bank of Atlanta, Atlanta, GA ($198 million); Pickens Savings and Loan Association, FA, Pickens, SC ($94 million).

Added this week were First Federal Savings and Loan Association of Greensburg, Greensburg, IN ($158 million) and Quontic Bank, Astoria, NY ($126 million). The other notable change was the OCC issuing a Prompt Corrective Action order against The National Republic Bank of Chicago, Chicago, IL ($1.0 billion), which has been laboring under a formal enforcement action since 2010.

Next week will likely be quiet as we do not anticipate the FDIC providing an update until two weeks from now.

CR Note: The first unofficial problem bank list was published in August 2009 with 389 institutions. The list peaked at 1,002 institutions on June 10, 2011, and is now down to 447.

by Calculated Risk on 8/15/2014 04:15:00 PM

Economist Tom Lawler sent me the table below of short sales, foreclosures and cash buyers for several selected cities in July.

Comments from CR: Tom Lawler has been sending me this table every month for several years. I think it is very useful for looking at the trend for distressed sales and cash buyers in these areas. I sincerely appreciate Tom sharing this data with us!

On distressed: Total "distressed" share is down in all of these markets, mostly because of a sharp decline in short sales.

Short sales are down in all of these areas.

Foreclosures are down in most of these areas too, although foreclosures are up a little in few areas like Nevada, Sacramento and the Mid-Atlantic.

The All Cash Share (last two columns) is mostly declining year-over-year. As investors pull back, the share of all cash buyers will probably continue to decline.

	Short Sales Share		Foreclosure Sales Share		Total "Distressed" Share		All Cash Share
	July-14	July-13	July-14	July-13	July-14	July-13	July-14	July-13
Las Vegas	11.5%	28.0%	10.1%	8.0%	21.6%	36.0%	35.6%	54.5%
Reno**	8.0%	21.0%	4.0%	7.0%	12.0%	28.0%
Phoenix	3.7%	11.5%	5.9%	9.4%	9.6%	20.8%	24.8%	35.8%
Sacramento	5.7%	17.9%	6.3%	5.1%	12.0%	23.0%	20.9%	25.5%
Minneapolis	3.0%	5.7%	9.5%	15.0%	12.5%	20.7%
Mid-Atlantic	4.3%	6.6%	7.7%	6.6%	12.1%	13.2%	17.1%	16.1%
Orlando	8.3%	17.9%	24.4%	17.5%	32.7%	35.4%	39.6%	47.8%
California *	6.6%	12.7%	5.6%	8.3%	12.2%	21.0%
Bay Area CA*	4.2%	8.5%	2.7%	4.6%	6.9%	13.1%	20.2%	23.5%
So. California*	5.9%	12.7%	5.2%	7.7%	11.1%	20.4%	24.5%	30.0%
Hampton Roads					19.3%	20.5%
Northeast Florida					30.7%	34.9%
Memphis*			13.4%	16.9%
Georgia***							24.1%	N/A
Toledo							32.9%	35.0%
Wichita							28.0%	24.1%
Des Moines							15.1%	15.1%
Tucson							26.2%	29.1%
Omaha							17.0%	15.9%
Pensacola							32.9%	30.0%
*share of existing home sales, based on property records **Single Family Only ***GAMLS

by Calculated Risk on 8/15/2014 02:47:00 PM

From housing economist Tom Lawler:

Based on reports released so far by local realtor associations/boards/MLS, I estimate that US existing home sales as measured by the National Association of Realtors ran at a seasonally adjusted annual rate of about 5.09 million in July, up 0.6% from June’s estimate but down 5.4% from last July’s estimate.

Last July, of course, was the peak month for home sales in 2013. Based on a combination of local realtor/MLS reports and real-estate listings trackers, I project that the NAR’s estimate of the number of existing homes for sale at the end of July will be up about 3.0% from the end of June. Barring revisions, such a gain would imply a YOY inventory increase of 5.8%, compared to the YOY gain of 6.5% in June.

Finally, based on local realtor/MLS reports I project that the NAR’s estimate of the median existing SF home sales price in July will be 3.7% higher than last July. The estimated YOY gain in June was 4.5%.

CR Note: The NAR is scheduled to release July existing home sales on Thursday, August 21st. The consensus is for sales at a 5.00 million pace (SAAR).

On inventory, if Lawler is correct, this would put inventory in July at close to the same level as two years ago - in July 2012 -when prices started increasing faster.  Now, with rising inventory, this should mean slower price increases.

by Calculated Risk on 8/15/2014 09:55:00 AM

Click on graph for larger image.

The preliminary Reuters / University of Michigan consumer sentiment index for August was at 79.2, down from 81.8 in July.

This was the lowest reading since last November and below the consensus forecast of 82.3. Sentiment has generally been improving following the recession - with plenty of ups and downs - and a big spike down when Congress threatened to "not pay the bills" in 2011.

by Calculated Risk on 8/15/2014 09:15:00 AM

From the Fed: Industrial production and Capacity Utilization

Industrial production increased 0.4 percent in July for its sixth consecutive monthly gain. Manufacturing output advanced 1.0 percent in July, its largest increase since February. The production of motor vehicles and parts jumped 10.1 percent, while output in the rest of the manufacturing sector rose 0.4 percent. The production at mines moved up 0.3 percent, its ninth consecutive monthly increase. The output of utilities dropped 3.4 percent, as weather that was milder than usual for July reduced demand for air conditioning. At 104.4 percent of its 2007 average, total industrial production in July was 5.0 percent above its year-earlier level. Capacity utilization for total industry edged up 0.1 percentage point to 79.2 percent in July, a rate 1.7 percentage points above its level of a year earlier and 0.9 percentage point below its long-run (1972–2013) average.
emphasis added

Click on graph for larger image.

This graph shows Capacity Utilization. This series is up 12.3 percentage points from the record low set in June 2009 (the series starts in 1967).

Capacity utilization at 79.2% is 0.9 percentage points below its average from 1972 to 2012 and below the pre-recession level of 80.8% in December 2007.

Note: y-axis doesn't start at zero to better show the change.

The second graph shows industrial production since 1967.

Industrial production increased 0.4% in July to 104.4. This is 24.7% above the recession low, and 3.6% above the pre-recession peak.

The monthly change for Industrial Production was slightly above expectations.