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March 2016: Unofficial Problem Bank list declines to 151 Institutions, Q1 2017 Transition Matrix


Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources.  Here are the monthly changes and a few comments from surferdude808:

Update on the Unofficial Problem Bank List for March 2017.  During the month, the list declined slightly from 155 institutions to 151 after five removals and one addition.  Assets dropped by a minuscule 8 million to an aggregate .3 billion.  A year ago, the list held 223 institutions with assets of .6 billion.

This month, actions have been terminated against NewDominion Bank, Charlotte, NC (6 million); Abacus Federal Savings Bank, New York, NY (3 million); The Somerville National Bank, Somerville, OH (4 million); and The Trust Bank, Lenox, GA ( million).  Proficio Bank, Cottonwood Heights, UT ( million) left the list through failure.

The addition this month was Texas Champion Bank, Corpus Christi, TX (2 million).  Also, the FDIC issued a Prompt Corrective Action order against First NBC Bank, New Orleans, LA (.7 billion) on February 24, 2017.

Unofficial Problem Banks

With it being the end of the first quarter, we bring an updated transition matrix to detail how banks are moving off the Unofficial Problem Bank List.  Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, a total of 1,717 institutions have appeared on a weekly or monthly list at some point.  Only 8.8 percent of the banks that have appeared on the list remain today.  In all, there have been 1,566 institutions that have transitioned through the list.  Departure methods include 898 action terminations, 402 failures, 250 mergers, and 16 voluntary liquidations.  Of the 389 institutions on the first published list, 15 or 3.9 percent still remain more than seven years later.  The 402 failures represent 23.4 percent of the 1,717 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
  Action Terminated 173 (64,253,325)
  Unassisted Merger 40 (9,818,439)
  Voluntary Liquidation 4 (10,584,114)
  Failures 157 (184,803,449)
  Asset Change (1,103,405)
Still on List at 3/31/2017   15 5,750,697
Additions after
  136 35,588,852
End (3/31//2017)   151 41,339,549
Intraperiod Removals1      
  Action Terminated 725 302,397,736
  Unassisted Merger 210 81,003,647
  Voluntary Liquidation 12 2,474,477
  Failures 245 120,346,094
  Total 1,192 506,221,954
1Institution not on 8/7/2009 or 3/31/2017 list but appeared on a weekly list.

Calculated Risk

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