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Problem Banks: Stress by State

By Anonymous

Some more interesting data from Surferdude808:

With the banking crisis ending its third year, it may prove useful to identify which states have experienced the most stress.

At year-end 2007, there were 8,536 insured institutions headquartered in the 50 states, D.C., and Puerto Rico. Since that time, 1,340 or 15.7 percent have either failed or made an appearance on the Unofficial Problem Bank List (see table below).

When ranking markets with a minimum of 15 institutions at year-end 2007, Arizona has experienced the most stress with 45.6 percent of its institutions having failed or being identified as a problem. Washington is a close second at 45.4 percent. The other stressed banking states that rank in the top ten include Nevada (43 percent), Oregon (40 percent), Florida (37 percent), Georgia (34 percent), California (34 percent), Utah (32 percent), Idaho (26 percent), and Colorado (25 percent).

The common theme among these is overexposure to commercial real estate lending, particularly residential construction & development loans, and the collapse of real estate markets. At the other end of the spectrum with comparatively little stress include Iowa (4.3 percent), New Hampshire (4.2 percent), and West Virginia (1.5 percent). Vermont is the only state that has not experienced a failed institution or one appearing on the Unofficial Problem Bank List.

State	2007 Count	20101	Removals2	Failures3	Total4	% 5	Rank
AK	6	1			1	0.0%	47
AL	160	24		4	28	17.5%	16
AR	150	14	2	2	18	12.0%	25
AZ	57	15	2	9	26	45.6%	1
CA	313	65	6	34	105	33.5%	7
CO	159	33	4	3	40	25.2%	10
CT	56	7	1		8	14.3%	23
DC	8	2			2	0.0%	47
DE	33	3			3	9.1%	33
FL	317	67	4	45	116	36.6%	5
GA	352	64	4	51	119	33.8%	6
HI	9	3			3	0.0%	47
IA	391	14	2	1	17	4.3%	44
ID	19	4		1	5	26.3%	9
IL	671	65	1	38	104	15.5%	20
IN	162	13	3	1	17	10.5%	27
KS	357	32	5	7	44	12.3%	24
KY	206	16	3	1	20	9.7%	29
LA	162	8	1	1	10	6.2%	39
MA	181	8	1	1	10	5.5%	41
MD	97	15		6	21	21.6%	12
ME	34	2			2	5.9%	40
MI	164	22	3	10	35	21.3%	13
MN	443	65	2	15	82	18.5%	15
MO	361	26	3	11	40	11.1%	26
MS	97	4		1	5	5.2%	42
MT	79	14	1		15	19.0%	14
NC	112	14	2	2	18	16.1%	18
ND	97	4	1		5	5.2%	42
NE	248	10	5	2	17	6.9%	38
NH	24	1			1	4.2%	45
NJ	127	14	3	3	20	15.7%	19
NM	53	7		2	9	17.0%	17
NV	44	8	1	10	19	43.2%	3
NY	203	16	1	4	21	10.3%	28
OH	265	19	2	4	25	9.4%	31
OK	259	17	1	2	20	7.7%	37
OR	40	9	1	6	16	40.0%	4
PA	246	17		3	20	8.1%	36
PR	10	1		3	4	0.0%	47
RI	13	2	2		4	0.0%	47
SC	93	17	1	4	22	23.7%	11
SD	89	7		1	8	9.0%	34
TN	203	17	1		18	8.9%	35
TX	659	48	7	8	63	9.6%	30
UT	68	16		6	22	32.4%	8
VA	119	16		2	18	15.1%	22
VT	16				0	0.0%	47
WA	97	28	2	14	44	45.4%	2
WI	296	39	3	3	45	15.2%	21
WV	68			1	1	1.5%	46
WY	43	2	1	1	4	9.3%	32
Totals	8,536	935	82	323	1,340	15.7%

¹ Unofficial Problem Bank List Year-end 2010
² Unofficial Problem Bank List Removals (ex-Failures)
³ Failures (2008-2010)
⁴ Total Failures, UPBL, & UPBL Removals (ex-Failures)
⁵ Total failures, UBPL, and UPBL ex-failures to 2007 count (a percentage for states with less than 15 institutions is not determined because of possible skew to ranking).

Full post as published by Calculated Risk on December 31, 2010 (boomark / email).