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June 2019: Unofficial Problem Bank list increased to 76 Institutions, Q2 2019 Transition Matrix

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Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources. 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.

Here is the unofficial problem bank list for June 2019.

Here are the monthly changes and a few comments from surferdude808:

Update on the Unofficial Problem Bank List for June 2019. During the month, the list increased by three to 76 institutions after a removal and three additions. Assets changed by a nominal 2 million to billion. A year ago, the list held 92 institutions with assets of billion.

This month, the action against First Southern Bank (f/k/a The Patterson Bank), Patterson, GA (3 million) was terminated. Additions this month included The Farmers Bank, Carnegie, OK (1 million); Home Bank of Arkansas, Portland, AR ( million); and State Bank, Green River, WY ( million). Also, thanks to a reader that identified an institution not included within the list – CornerstoneBank, Atlanta, GA (9 million), that has been operating under a Consent Order since 2012.

With the conclusion of the second quarter, we bring an updated transition matrix to detail how banks are transitioning off the Unofficial Problem Bank List. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, 1,747 institutions have appeared on a weekly or monthly list since the start of publication. Only 4.2 percent of the banks that have appeared on a list remain today as 1,671 institutions have transitioned through the list. Departure methods include 984 action terminations, 406 failures, 262 mergers, and 19 voluntary liquidations. Of the 389 institutions on the first published list, only 6 or 1.5 percent, are still designated as being in a troubled status more than nine years later. The 406 failures represent 23.3 percent of the 1,747 institutions that have made an appearance on the list. This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC’s official list.


Unofficial Problem Bank List
Change Summary
  Number of Institutions Assets ($Thousands)
Start (8/7/2009)   389 276,313,429
 
Subtractions      
  Action Terminated 179 (68,279,301)
  Unassisted Merger 41 (10,072,112)
  Voluntary Liquidation 5 (10,672,586)
  Failures 158 (186,397,337)
  Asset Change 345,554
 
Still on List at 6/30/2019   6 1,237,647
 
Additions after
8/7/2009
  70 53,790,865
 
End (6/30/2019)   76 55,028,512
 
Intraperiod Removals1      
  Action Terminated 805 325,312,142
  Unassisted Merger 221 82,691,403
  Voluntary Liquidation 14 2,558,186
  Failures 248 125,152,210
  Total 1,288 535,731,941
1Institution not on 8/7/2009 or 6/30/2019 list but appeared on a weekly list.


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