by Calculated Risk on 7/20/2012 06:07:00 PM

A relentless heat
Asset drought wilts more bankers
Scorched earth arrives
by Soylent Green is People
From the FDIC: Metcalf Bank, Lees Summit, Missouri, Assumes All of the Deposits of Heartland Bank, Leawood, Kansas

As of March 31, 2012, Heartland Bank had approximately $110.0 million in total assets and $102.6 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.1 million. Compared ... Heartland Bank is the 37th FDIC-insured institution to fail in the nation this year, and the first in Kansas.

Pretty small hit to the DIF. That makes four today so far ...

by Calculated Risk on 7/20/2012 05:18:00 PM

From the FDIC: First National Bank of the Gulf Coast, Naples, Florida, Assumes All of the Deposits of the Royal Palm Bank of Florida, Naples, Florida

As of March 31, 2012, The Royal Palm Bank of Florida had approximately $87.0 million in total assets and $85.1 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $13.5 million. ... The Royal Palm Bank of Florida is the 34th FDIC-insured institution to fail in the nation this year, and the fifth in Florida.

From the FDIC: Community & Southern Bank, Atlanta, Georgia, Assumes All of the Deposits of Georgia Trust Bank, Buford, Georgia

As of March 31, 2012, Georgia Trust Bank had approximately $119.8 million in total assets and $117.4 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. ... Georgia Trust Bank is the 35th FDIC-insured institution to fail in the nation this year, and the seventh in Georgia.

From the FDIC: Community & Southern Bank, Atlanta, Georgia, Assumes All of the Deposits of First Cherokee State Bank, Woodstock, Georgia

As of March 31, 2012, First Cherokee State Bank had approximately $222.7 million in total assets and $193.3 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $36.9 million. ... First Cherokee State Bank is the 36th FDIC-insured institution to fail in the nation this year, and the eighth in Georgia.

Two more in Georgia ... not a surprise.

by Calculated Risk on 7/20/2012 02:53:00 PM

Low rates and HARP are driving activity ...

From Jon Prior at HousingWire: Big-four mortgage originations climb 37%

Mortgage originations at the big-four banks increased 37% in the second quarter from last year because of the expanded Home Affordable Refinance Program.
...
Wells continued to dominate. The San Francisco bank wrote $131.9 billion in new loans during the quarter, more than double originations from the same period last year. Wells said 16% of those new loans came through the Home Affordable Refinancing Program.
...
Chase wrote $43.9 billion in new mortgages during the quarter, up 29% from last year and 14.3% from the previous quarter.
...
Bank of America continues to feel the drop off from exiting its correspondent lending channel last year. Originations fell 55% from one year ago to roughly $18 billion, the only yearly decline of the big-four lenders.
...
Citi originations totaled $12.9 billion, up 17% from last year but still down 10% from the previous quarter.

If the Fed does expand their balance sheet ("QE3") on Aug 1st, or at the September meeting, the purchases will probably be focused on agency mortgage backed securities. The people able to refinance might even get even lower rates, but many prospective borrowers will still be unable to refinance.

by Calculated Risk on 7/20/2012 11:13:00 AM

From the BLS: Regional and State Employment and Unemployment Summary

Regional and state unemployment rates were little changed in June. Twenty-seven states recorded unemployment rate increases, 11 states and the District of Columbia posted rate decreases, and 12 states had no change, the U.S. Bureau of Labor Statistics reported today.
...
Nevada continued to record the highest unemployment rate among the states, 11.6 percent in June. Rhode Island and California posted the next highest rates, 10.9 and 10.7 percent, respectively. North Dakota again registered the lowest jobless rate, 2.9 percent, followed by Nebraska, 3.8 percent.

Click on graph for larger image in graph gallery.

This graph shows the current unemployment rate for each state (red), and the max during the recession (blue). New York is at the maximum unemployment rate for the recession - every other state has some blue indicating some improvement. New Jersey is close to the recession maximum.

The states are ranked by the highest current unemployment rate. Only three states still have double digit unemployment rates: Nevada, Rhode Island, and California. This is the fewest since January 2009. In early 2010, 18 states and D.C. had double digit unemployment rates.

It appears some of the "sand states", with the largest housing bubbles, are starting to see faster declines in the unemployment rate (Arizona, Florida, California and Nevada).
All current employment graphs

by Calculated Risk on 7/20/2012 08:47:00 AM

From the WSJ: Euro Zone Approves Terms of Spain Bank Bailout

Luxembourg Finance Minister Luc Frieden told reporters there had been a "formal" adoption of the country's memorandum of understanding—the official document outlining the details of the financial assistance package.
...
The bailout will pump up to €100 billion euros ($123 billion) into ailing Spanish banks and will aim to restore the country's financial sector.
...
Also Friday, Spain's government said it expects the economy to remain in recession next year as it steps up austerity measures.

The yield on the Spanish 10 year bond is now above 7.2% - near the high.

More austerity. More recession. The beatings continue ...