by Calculated Risk on 9/11/2010 08:43:00 AM

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

Here is the unofficial problem bank list for September 10, 2010.

Changes and comments from surferdude808:

After six additions and one removal, the Unofficial Problem Bank List includes 849 institutions with aggregate assets of $415.3 billion, up from 844 institutions with assets of $412 billion last week.

The additions include First National Community Bank, Dunmore, PA ($1.3 billion Ticker: FNCB); Pacific Mercantile Bank, Costa Mesa, CA ($1.1 billion Ticker: PMBC); Community Shores Bank, Muskegon, MI ($262 million Ticker: CSHB); First American State Bank, Greenwood, CO ($244 million); Service1st Bank of Nevada, Las Vegas, NV ($232 million Ticker: WLBC); and Bank of the Eastern Shore, Cambridge, MD ($223 million).

The removal is the failed Horizon Bank ($188 million). Next week, we anticipate for the OCC to release its actions for August.

The FDIC has only closed one bank over the last three weeks - but the additions keep coming!

by Calculated Risk on 9/10/2010 10:27:00 PM

Via Politico in October 2009 (link here if embed doesn't load)

"Number one on the list we wanted to make sure - [whisper] all the Clinton people got their jobs back - to do something to help the country."

“The unemployment rate is at 9.7% ... Have some sympathy for those people that are unemployed, because when Rahm Emanuel sees my comments from this evening, I am going to be one of them.”

by Calculated Risk on 9/10/2010 06:25:00 PM

Fading Horizon
It's reach, overextended.
Federal eclipse.
by Soylent Green is People
From the FDIC: Bank of the Ozarks, Little Rock, Arkansas, Assumes All of the Deposits of Horizon Bank, Bradenton, Florida

As of June 30, 2010, Horizon Bank had approximately $187.8 million in total assets and $164.6 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.9 million. ... Horizon Bank is the 119th FDIC-insured institution to fail in the nation this year, and the twenty-third in Florida. The last FDIC-insured institution closed in the state was Community National Bank at Bartow, Bartow, on August 20, 2010.

After taking two weeks off, the FDIC is back in action.

by Calculated Risk on 9/10/2010 03:08:00 PM

Hotel occupancy is one of several industry specific indicators I follow ...

From HotelNewsNow.com: STR: US hotel results week ending 4 Sept. 2010

In year-over-year comparisons, occupancy increased 7.5 percent to 57.4 percent, average daily rate was up 2.1 percent to US$94.37, and revenue per available room rose 9.7 percent to US$54.16.

This was the 13th consecutive week the U.S. reported overall ADR increases. Before this trend emerged, ADR in decreased 74 of the past 76 weeks.

The following graph shows the four week moving average for the occupancy rate by week for 2008, 2009 and 2010 (and a median for 2000 through 2007).

Click on graph for larger image in new window.

Notes: the scale doesn't start at zero to better show the change. The graph shows the 4-week average, not the weekly occupancy rate.

On a 4-week basis, occupancy is up 8.1% compared to last year (the worst year since the Great Depression) and 3.5% below the median for 2000 through 2007.

The occupancy rate is just above the levels of 2008 - but 2008 was a tough year for the hotel industry!

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com

by Calculated Risk on 9/10/2010 01:25:00 PM

Yesterday I posted a couple of graphs of government payroll employment since 1976 as a response to some comments to Menzie Chinn's post at Econbrowser: The "Ever-Expanding" Government Sector, Illustrated

There were a few questions ... (Please remember I was just answering some question to Menzie's post - not trying to start a huge debate - but I do think data helps to define the issues.)

Q: Does this include active duty military?

A: No. The payroll data is from the BLS and is for civilian employment only.

Q: Does this include government contractors?

A: Government contractors are private employers. The headcount would be included in the BLS report, but not as government employees.

Q: The graphs show that Federal government payroll employment (ex-military) has been declining over the last 35 years - and state and local has been mostly flat. But what about the pay (including benefits)?

A: I don't have that data, but the following graph is based on BEA data and shows the Federal (and defense spending) and state and local spending as a percent of GDP. But this doesn't include any unfunded future liabilities.

Click on graph for larger image.

There has been a surge in defense spending, but Federal spending ex-defense and state and local spending has been fairly flat (but as I noted above, underfunded future liabilities - like state and local underfunded pension plans - don't show up).

I'm guessing the next question will be how the Federal stimulus spending shows up in the BEA reports. So here is the answer from the BEA:

BEA tracks the portion of federal government sector receipts and expenditures in the national income and product accounts that are affected by the provisions of the ARRA. Many of the ARRA-funded transactions—such as grants, transfers, and tax cuts—are not directly included in gross domestic product (GDP), because GDP only includes government spending on goods and services. However, these transactions affect GDP indirectly by providing resources to households, businesses, and state and local governments to fund personal consumption expenditures, business investment, and state and local government spending.

Now back to the economy.

by Calculated Risk on 9/10/2010 10:07:00 AM

From the Census Bureau:

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $405.0 billion at the end of July, up 1.3 percent ...

The July inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.16.

Click on graph for larger image in new window.

Usually we focus on Manufacturers' Inventories and Manufacturers' inventory-to-sales ratio, but the wholesale inventory report shows the same thing - the inventory adjustment is over.

This increase could be spun two ways. First from CNBC:

U.S. wholesale inventories surged by the largest amount in two years in July ... in a sign firms were anticipating enough demand to boost stock this summer.

That sounds like good news.

The alternative view (my view) is that inventories are now a little too high - and that wholesalers will now cut back a little on orders.