by Calculated Risk on 3/28/2021 08:11:00 AM

The FDIC's official problem bank list is comprised of banks with a CAMELS rating of 4 or 5, and the list is not made public (just the number of banks and assets every quarter). Note: Bank CAMELS ratings are also not made public.

CAMELS is the FDIC rating system, and stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. The scale is from 1 to 5, with 1 being the strongest.

As a substitute for the CAMELS ratings, surferdude808 is using publicly announced formal enforcement actions, and also media reports and company announcements that suggest to us an enforcement action is likely, to compile a list of possible problem banks in the public interest.

DISCLAIMER: This is an unofficial list, the information is from public sources only, and while deemed to be reliable is not guaranteed. No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein and same is subject to errors and omissions. This is not intended as investment advice. Please contact CR with any errors.

Here is the unofficial problem bank list for Q1 2021.

Here are the quarterly changes and a few comments from surferdude808:

Update on the Unofficial Problem Bank List through March 26, 2020. Since the last update at the end of December 2020, the list increased by two to 67 institutions after five additions and three removals. Assets increased by $800 million to $59 billion, with the change including a $1.1 billion decrease from updated asset figures through December 31, 2020. A year ago, the list held 65 institutions with assets of $48.6 billion.

Additions this month included Bank of the Orient, San Francisco, CA ($927 million); Southwestern National Bank, Houston, TX ($776 million); Lincoln 1st Bank, Lincoln Park, NJ ($314 million); Community First Bank, Maywood, NE ($127 million); and Spectra Bank, Fort Worth, TX ($92 million). Removals included Citizens Savings Bank and Trust Company, Nashville, TN ($112 million); The Morris County National Bank of Naples, Naples, TX ($94 million); and The First National Bank of Fleming, Fleming, CO ($25 million). Another change since year-end was the OCC issuing a Prompt Corrective Action order against The First National Bank and Trust Company of Vinita, Vinita, OK ($285 million).

On February 23, 2021, the FDIC released third quarter results and an update on the Official Problem Bank List. In that release, the FDIC said there were 56 institutions with assets of $56 billion on the official list, compared with 56 institutions with assets of $53.9 billion at the third quarter of 2020.

With the conclusion of the first quarter, we bring an updated transition matrix to detail how banks are transitioning off the Unofficial Problem Bank List. Since we first published the Unofficial Problem Bank List on August 7, 2009 with 389 institutions, 1,773 institutions have appeared on a weekly or monthly list since then. Only 3.8 percent of the banks that have appeared on a list remain today as 1,706 institutions have transitioned through the list. Departure methods include 1,005 action terminations, 411 failures, 271 mergers, and 19 voluntary liquidations. Of the 389 institutions on the first published list, only 3 or less than 1.0 percent, still have a troubled designation more than ten years later. The 411 failures represent 23.2 percent of the 1,773 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.