Unofficial Problem Bank list declines to 496 Institutions

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

Here is the unofficial problem bank list for May 30, 2014.

Changes and comments from surferdude808:

As expected, the FDIC provided an update on its enforcement actions through April 2014 and released industry results for 1q2014. Unexpectedly, there was a bank failure for the third consecutive week, which last occurred in October/November 2012. For the week, there were six removals and three additions that leave the Unofficial Problem Bank List at 496 institutions with assets of $154.1 billion. Asset figures were updated through 1q2014. For the first time since the list has been published, updated quarterly asset figures led to an increase in assets of $794 million. Usually, problem banks shrink their balance sheet as a tactic to increase their capital ratios. A year ago, the list held 761 institutions with assets of $277.2 billion. During May 2014, the list declined by 17 institutions after 16 action terminations, three failures, one merger and three additions.

Actions were terminated against Macon Bank, Inc., Franklin, NC ($789 million); State Bank of Countryside, Countryside, IL ($589 million); Freedom Bank, Inc., Belington, WV ($150 million); Savoy Bank, New York, NY ($103 million); and First Security Trust Bank, Inc., Florence, KY ($82 million).

Slavie Federal Savings Bank, Bel Air, MD ($140 million) was the ninth institution to fail this year. Also, Slavie Federal was the ninth institution to fail in Maryland since the on-set of the Great Recession.

Added this week were GSL Savings Bank, Guttenberg, NJ ($100 million); Grant County Deposit Bank, Williamstown, KY ($79 million); and Columbus Junction State Bank, Columbus Junction, IA ($56 million). The last time three institutions were added during a week was back on October 4, 2013. The FDIC also issued a Prompt Correction Action order against State Bank of Herscher, Herscher, IL ($149 million) and Highland Community Bank, Chicago, IL ($64 million).

The FDIC told us there are now officially 411 problem institutions with assets of $126 billion. The spread between the official and unofficial count narrowed to 85 from 99 last quarter and assets to $28 billion from $29 billion. Next week will likely be quiet nor do we think there will be a failure for a fourth consecutive week.

CR Note: The first unofficial problem bank list was published in August 2009 with 389 institutions. The list peaked at 1,002 institutions on June 10, 2011, and is now down to 496.