by Calculated Risk on 9/28/2013 10:32:00 PM

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

Here is the unofficial problem bank list for September 27, 2013.

Changes and comments from surferdude808:

The FDIC broke its reporting pattern by not releasing its enforcement action activity for the previous month on the last Friday of the current month. Guess we will get it next week. Otherwise, there two removals during the week that leave the Unofficial Problem Bank list with 690 institutions and $240.5 billion of assets. A year ago, the list held 874 institutions with $335 billion of assets. During the month of September 2013, the list dropped by a net 17 institutions after 14 action terminations, two unassisted mergers, two failures, and one addition. Assets fell by $10.2 billion, which made was the third consecutive month for the list to shrink by more than $10 billion. It may be challenging for the monthly asset removal rate to stay above $10 billion as the average size of institutions on the list has fallen to $349 million. Thus, about 28 institutions would need removal while the average monthly removal rate for the past year is 23 institutions.

The removals this week were Seacoast National Bank, Stuart, FL ($2.2 billion Ticker: SBCF) and A J Smith Federal Savings Bank, Midlothian, IL ($216 million).

During the month, the Treasury Department issued its five-year update report on TARP. A total of 119 institutions still have not repaid capital infused under TARP including 57 institutions on the Unofficial Problem Bank List. Of the institutions on the Unofficial Problem bank List, there are 50 that have missed 10 or more quarterly payments. See the table for additional details (excel file).

Supposedly, only healthy banks were eligible for an infusion of capital through the various TARP programs. This week, the Wall Street Journal (Some Smaller Banks Still Owe TARP Money) highlighted the difficulties of many banks to exit TARP and this "undercut the insistence of government officials at the height of the crisis that taxpayer dollars would only be steered toward healthy, viable banks." More than 25 banking organizations that received TARP have failed or filed for bankruptcy protection. After five years, the dividend rate on TARP preferred shares rises from 5% to 9%. In the fourth quarter of 2013, the dividend rate will increase for 13 institutions on the Unofficial Problem Bank List. Most likely, the dividend increase will accelerate the resolution status of these institutions.

Next week, we look for the FDIC to release its actions through August 2013. If so, we will update the quarterly transition matrix. There is nothing new to pass along on Capitol Bancorp, Ltd.