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Unofficial Problem Bank list increases to 933 Institutions

By Anonymous

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

Here is the unofficial problem bank list for Jan 14, 2011.

Changes and comments from surferdude808:

It was a quiet week for the Unofficial Problem Bank List as there were only two additions and one removal, which leaves the list at 933 institutions with assets of $410.4 billion.

The removal was Sunnyside FS&LA of Irvington, Irvington, NY ($96 million) as the OTS terminated its Cease & Desist Order against the thrift. CR received notice the order had been terminated from an officer of Sunnyside. It is interesting that CR has yet to receive a notice from an institution when it has been placed under a formal action.

The sole failure this week -- Oglethorpe Bank, Brunswick, GA -- was not on the Unofficial Problem Bank List. The failure cost the FDIC $80.4 million or nearly 35 percent of the failed bank's assets. It is becoming more unusual for an institution to fail without being subject to a formal action as banking regulators have mostly caught-up from the onslaught of problems/failures that started in 2008. However, given the high percentage cost in terms of the failed bank's assets, it is difficult to understand how the 52nd bank failure in Georgia was not operating under a corrective action.

The additions this week include First Bank and Trust Company of Illinois, Palatine, IL ($357 million); and First Federal Savings and Loan Association of Hammond, Hammond, IN ($52 million). The other change this week is a new name and ticker symbol for First Standard Bank, Los Angeles, CA ($123 million Ticker: FSTA), which is now operating as Open Bank (Ticker: OPBK).

We thought there might be an outside chance for the OCC to release its actions through mid-December 2010, but that did not happen. Look for the OCC press release next Friday, until then try to practice safe banking.

Full post as published by Calculated Risk on January 15, 2011 (boomark / email).