by Calculated Risk on 7/30/2011 08:36:00 AM

Note: this is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for July 29, 2011.

Changes and comments from surferdude808:

After eight additions and six removals this week, the Unofficial Problem Bank List includes 995 institutions with assets of $415.4 billion. Last week the list had 993 institutions with assets of $415.7 billion. For the month, the list experienced a net decline of six institutions and an asset drop of $3.9 billion.

The removals this week include the three failures and three cures. The removals from failure were Integra Bank National Association, Evansville, IN ($2.2 billion Ticker: IBNK); BankMeridian, N.A., Columbia, SC ($240 million); and Virginia Business Bank, Richmond, VA ($96 million). The action terminations were Heartland Bank, Leawood, KS ($131 million); The Hicksville Bank, Hicksville, OH ($119 million); and State Bank of Paw Paw, Paw Paw, IL ($23 million).

Among the eight additions are U. S. Century Bank, Doral, FL ($1.7 billion); First Bank, Clewiston, FL ($249 million); Community Trust & Banking Company, Ooltewah, TN ($147 million); and Flagship Bank Minnesota, Wayzata, MN ($122 million).

Yesterday ...
• Advance Estimate: Real Annualized GDP Grew at 1.3% in Q2
• Real GDP still below Pre-Recession Peak, Chicago PMI declines, Consumer Sentiment Weak
• GDP: Investment Contributions (several graphs)
• HVS: Q2 Homeownership and Vacancy Rates

by Calculated Risk on 7/29/2011 09:25:00 PM

Fannie Mae reported that the serious delinquency rate decreased to 4.08% in June, down from 4.14% in May. This is down from 4.99% in June of 2010. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Freddie Mac reported that the Single-Family serious delinquency rate decreased to 3.50% in June from 3.53% in May. This is down from 3.96% in May 2010. Freddie's serious delinquency rate peaked in February 2010 at 4.20%.

These are loans that are "three monthly payments or more past due or in foreclosure".

Click on graph for larger image in graph gallery.

Some of the rapid increase in 2009 was probably because of foreclosure moratoriums, and also because loans in trial mods were considered delinquent until the modifications were made permanent.

Now the serious delinquency rate is falling as Fannie and Freddie work through the backlog of loans and either modify the loan, foreclose, short sale, or the loan cures. But there is a long way to go ...

The normal serious delinquency rate is under 1%. At the current rate of decline, Fannie will be back to "normal" in 2014, and Freddie will be back to "normal" in 2017 or so!

by Calculated Risk on 7/29/2011 07:16:00 PM

Failing Integra
An integrity failure.
From low integers
by Soylent Green is People
From the FDIC: Old National Bank, Evansville, Indiana, Assumes All of the Deposits of Integra Bank, National Association, Evansville, Indiana

As of March 31, 2011, Integra Bank, National Association had approximately $2.2 billion in total assets and $1.9 billion in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $170.7 million. ... Integra Bank, National Association is the 61st FDIC-insured institution to fail in the nation this year, and the first in Indiana.

A pretty big failure ...

by Calculated Risk on 7/29/2011 05:39:00 PM

Meridian breach
A Business Bank in retreat
Crumbled capital.
by Soylent Green is People
From the FDIC: Xenith Bank, Richmond, Virginia, Assumes All of the Deposits of Virginia Business Bank, Richmond, Virginia

As of March 31, 2011, Virginia Business Bank had approximately $95.8 million in total assets and $85.0 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.3 million. ... Virginia Business Bank is the 59th FDIC-insured institution to fail in the nation this year, and the first in Virginia.

From the FDIC: SCBT, National Association, Orangeburg, South Carolina, Assumes All of the Deposits of BankMeridian, N.A., Columbia, South Carolina

As of March 31, 2011, BankMeridian, N.A. had approximately $239.8 million in total assets and $215.5 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $65.4 million. ... BankMeridian, N.A. is the 60th FDIC-insured institution to fail in the nation this year, and the third in South Carolina.

by Calculated Risk on 7/29/2011 02:53:00 PM

The Census Bureau released the Housing Vacancies and Homeownership report for Q2 this morning.

As Tom Lawler has been discussing (see posts at bottom), this is from a fairly small sample, and the homeownership and vacancy rates are higher than estimated in other reports (like Census 2010). This report is commonly used by analysts to estimate the excess vacant supply for housing, but it doesn't appear to be useful for that purpose.

It does show the trend, but I wouldn't rely on the absolute numbers.

Click on graph for larger image in graph gallery.

The Red dots are the decennial Census homeownership rates for April 1st 1990, 2000 and 2010. The HVS homeownership rate declined to 65.9%, down from 66.4% in Q1 2010.

From Tom Lawler:

The HVS has consistently overstated overall US housing vacancy rates, and consistently understated the number of US households – mainly “missing” millions of renter households – for over a decade. Census 2010 “found” 116,716,292 US households for April 1, 2010, 75,986,074 of which were owner-occupied households, and 40,730,218 of which were renter-occupied households.

While the HVS numbers don’t “correlate” all that well, a decent “best guess” for the US homeownership rate last quarter would probably be around 64.2%, or about the same as in 1990. Given the substantial aging of the population over the last two decades, that would imply that homeownership rates for most age groups last quarter were the lowest since the 1980’s.

CR note: we will get the Census 2010 age group homeownership rates soon.

The HVS homeowner vacancy rate declined to 2.5% from 2.6% in Q1.

From Lawler:

The “homeowner vacancy rate” from the HVS last quarter was 2.5%, down from 2.6% in the previous quarter but unchanged from a year ago. The HVS homeowner vacancy rate in the first half of 2010 was 2.55%, compared to the decennial Census estimate as of April 1, 2010 of 2.4%.

Lawler:

This survey also produced an estimated rental vacancy rate last quarter of 9.2%, down from 9.7% in the previous quarter and 10.6% in the second quarter of last year. The HVS estimate of the US rental vacancy rate for the first half of 2010 was 10.6%, compared to the decennial Census estimates as of Apri1 1, 2010 of 9.2%. Last quarter’s HVS rental vacancy rate was the lowest since the third quarter of 2002.

This report does suggest that the homeownership rate and vacancy rates are falling.

Here are some previous posts about some of the HVS issues by economist Tom Lawler:
• Census Bureau on Homeownership Rate: We've got “Some 'Splainin' to Do”
• Be careful with the Housing Vacancies and Homeownership report
• Lawler: Census 2010 and the US Homeownership Rate
• Lawler: Census 2010 Demographic Profile: Highlights, Excess Housing Supply Estimate, and Comparison to HVS
• Lawler: The “Excess Supply of Housing” War
• Lawler: Census Releases Demographic Profile of 12 States and DC: Confirms Bias of HVS
• Lawler: Census 2010 and Excess Vacant Housing Units
• Lawler: On Census Housing Stock/Household Data
• Lawler: Housing Vacancy Survey appears to massively overstate number of vacant housing units
• Lawler: US Households: Why Researchers / Analysts are “Confused”