by Calculated Risk on 8/21/2010 06:12:00 PM

Note: this is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for August 20, 2010.

Changes and comments from surferdude808:

Failures and the OCC disclosure of its recent actions contributed to many changes in the Unofficial Problem Bank List this week. After 12 additions and 8 removals this week the Unofficial Problem Bank List stands at 817 institutions with aggregate assets of $415.9 billion.

The eight failures this week – ShoreBank ($2.3 billion), Los Padres Bank ($902 million Ticker: HWFG), Butte Community Bank ($523 million Ticker: CVLL), Sonoma Valley Bank ($363 million Ticker: SBNK), Pacific State Bank ($323 million Ticker: PSBC), Independent National Bank ($163 million Ticker: IBFL), Community National Bank at Bartow ($75 million), and Imperial Savings and Loan Association ($10 million) were removed.

There were 12 additions this week including Southern First Bank, National Association, Greenville, SC ($742 million Ticker: SFST); First National Bank South Dakota, Yankton, SD ($405 million Ticker: FINN); The Peoples National Bank, Easley, SC ($341 million Ticker: PBCE); and United Fidelity Bank, fsb, Evansville, IN ($214 million Ticker: FDLB).

Other changes include Prompt Corrective Action Orders issued by the Federal Reserve against First Banking Center ($869 million Ticker: FBCI) and by the OTS against Security Savings Bank, F.S.B. ($536 million).

Note: The FDIC Q2 2010 Quarterly Banking Profile will be released this coming week.

by Calculated Risk on 8/21/2010 12:49:00 PM

"I could borrow $2 billion tomorrow for 3 1/2 percent. But what am I going to do with it?"David Speer, CEO of Illinois Tool Works which has 60,000 employees worldwide in more than 800 business units and $14 billion in sales.

The above quote is from an article by Neil Irwin in the WaPo: With consumers slow to spend, businesses are slow to hire

There is no reason to invest when there is excess capacity in most industries (and excess supply in housing). This excess capacity or lack of demand - and therefore lack of new investment - is a key reason why the recovery is sluggish.

by Calculated Risk on 8/21/2010 08:29:00 AM

From Sharon Bernstein at the LA Times: U.S. restaurants starved for business

"It's been a miserable 21/2 years," said Chuck Keagle, who has closed six of the 10 restaurants in his family's Rancho Cucamonga-based Cask 'n Cleaver steakhouse chain since the downturn began.
...
Overall, customers spent about 7% less in 2009 than the previous year, and business is still slow, said Darren Tristano, analyst with the food industry research firm Technomic Inc. The company expects consumers to spend just 0.5 percentage point more on restaurant food this year than last year.
...
"We're in survival mode — have been for a while," said [Matt DeMasi, who co-owns Zach's Cafe in Studio City] ...

"This is the weakest that the restaurant business has been," said [Bonnie Riggs, NPD Group's restaurant industry analyst]. Year over year, the number of patrons coming to restaurants has declined for each of the last seven quarters — the most prolonged drop in the 22 years that the company has been keeping track, she said.

Nationwide, the number of restaurants dropped in 2010 for the first time in more than a decade, according to NPD, falling 5,202 to 579,416.

Restaurants are a discretionary expense and are frequently first in and last out of a recession. The second half slowdown is already hitting restaurants again according to the National Restaurant Association's Restaurant Performance Index that showed contraction in June.

by Calculated Risk on 8/20/2010 09:14:00 PM

From the FDIC: Rabobank, National Association, El Centro, California, Acquires All the Deposits of Two Banks in California

As of June 30, 2010, Butte Community Bank had total assets of $498.8 million and total deposits of $471.3 million; and Pacific State Bank had total assets of $312.1 million and total deposits of $278.8 million. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Butte Community Bank will be $17.4 million; and for Pacific State Bank, $32.6 million. ... These closings bring the total for the year to 116 banks in the nation, and the seventh and eighth in California.

From the FDIC: Pacific Western Bank, San Diego, California, Assumes All of the Deposits of Los Padres Bank, Solvang, California

As of June 30, 2010, Los Padres Bank had approximately $870.4 million in total assets and $770.7 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.7 million. ... Los Padres Bank is the 117th FDIC-insured institution to fail in the nation this year, and the eighth in California.

From the FDIC: Westamerica Bank, San Rafael, California, Assumes All of the Deposits of Sonoma Valley Bank, Sonoma, California

As of June 30, 2010, Sonoma Valley Bank had approximately $337.1 million in total assets and $255.5 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.1 million. ... Sonoma Valley Bank is the 118th FDIC-insured institution to fail in the nation this year, and the ninth in California.

Eight down today.

by Calculated Risk on 8/20/2010 07:04:00 PM

From the FDIC: Urban Partnership Bank, Chicago, Illinois, Assumes All of the Deposits of ShoreBank, Chicago, Illinois

As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $367.7 million. ... ShoreBank is the 114th FDIC-insured institution to fail in the nation this year, and the fifteenth in Illinois. The last FDIC-insured institution closed in the state was Palos Bank and Trust Company, Palos Heights, on August 13, 2010.

This was no surprise (in the works for some time and rumored this morning). That makes four today ...

by Calculated Risk on 8/20/2010 06:15:00 PM

From the FDIC: CenterState Bank of Florida, National Association, Winter Haven, Florida, Acquires All the Deposits of Two Banks in Florida

As of June 30, 2010, Community National Bank At Bartow had total assets of $67.9 million and total deposits of $63.7 million; and Independent National Bank had total assets of $156.2 million and total deposits of $141.9 million. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Community National Bank At Bartow will be $10.3 million; and for Independent National Bank, $23.2 million. ... These closings bring the total for the year to 112 banks in the nation, and the twenty-first and twenty-second in Florida.

From the FDIC: River Community Bank, National Association, Martinsville, Virginia, Assumes All of the Deposits of Imperial Savings and Loan Association, Martinsville, Virginia

As of June 30, 2010, Imperial Savings and Loan Association had approximately $9.4 million in total assets and $10.1 million in total deposits ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.5 million. ... Imperial Savings and Loan Association is the 113th FDIC-insured institution to fail in the nation this year, and the first in Virginia.