by Calculated Risk on 4/02/2017 09:54:00 AM

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 $498 million to an aggregate $41.3 billion.  A year ago, the list held 223 institutions with assets of $64.6 billion.

This month, actions have been terminated against NewDominion Bank, Charlotte, NC ($316 million); Abacus Federal Savings Bank, New York, NY ($253 million); The Somerville National Bank, Somerville, OH ($164 million); and The Trust Bank, Lenox, GA ($39 million).  Proficio Bank, Cottonwood Heights, UT ($68 million) left the list through failure.

The addition this month was Texas Champion Bank, Corpus Christi, TX ($342 million).  Also, the FDIC issued a Prompt Corrective Action order against First NBC Bank, New Orleans, LA ($4.7 billion) on February 24, 2017.

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
Subtractions
	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 8/7/2009		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.