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Unofficial Problem Bank list declines to 655 Institutions

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

Here is the unofficial problem bank list for November 15, 2013.

Changes and comments from surferdude808:

The OCC released its enforcement action activity through mid-September 2013. A few actions were modified and they terminated six orders. The changes reduce the Unofficial Problem Bank list to 655 institutions with assets of 3.2 billion. This week, assets figures were updated through third quarter. As a result, updated figures were responsible for .2 billion of the .7 billion decline in assets this week. A year ago, the list held 857 institutions with assets of 9.2 billion.

The OCC terminated actions against The Conway National Bank Conway, SC (9 million Ticker: CNBW); Continental Bank, Plymouth Meeting, PA (4 million); Middlesex Federal Savings, F.A., Somerville, MA (7 million); National Bank of New York City, Flushing, NY (8 million); Traders National Bank, Tullahoma, TN (8 million); and Santa Clara Valley Bank, National Association, Santa Paula, CA (4 million).

Next week, the FDIC may release industry results for the third quarter, which will include an update on the aggregate count of institutions on the Official Problem bank List. Prior to the third quarter of 2010, the Official List count was higher than the Unofficial List, with a peak of 157 at fourth quarter 2009. In subsequent quarters it has reversed to be lower than the Unofficial List count with the difference reaching a high of 185 at first quarter of 2012. The difference has trended down to 148. There is a chance the difference could narrow to around 120 when the third quarter figures are released.

There is some news on Capitol Bancorp, LTD. to pass along. The bad first. The New Mexico State Banking Department reissued a notice in order to close Sunrise Bank of Albuquerque, Albuquerque, NM ( million) because the bank’s regulatory capital ratio has fallen below a required threshold. A previous closure notice issued in September 2012 was averted after a million capital injection by Capitol Bancorp. Now the possible good news. According to a report by SNL Securities (Capitol Bancorp, FDIC to end dispute over failed-bank cross-guaranty liability), the company has reached an agreement whereby the FDIC would receive 85% of any proceeds from the pending sell of several units. The bankruptcy court has agreed to these terms as well, which could allow the sale of four units to Talmer Bancorp, Inc. to proceed. Perhaps the saga of Capitol Bancorp is nearing an end, which has been one of the longest resolutions in FDIC’s history.


Calculated Risk

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