On 11 March and 12 March 2010, the Federal Deposit Insurance Corporation closed four banks: LibertyPointe Bank, New York, NY; Park Avenue Bank, New York, NY; Old Southern Bank, Orlando, FL; and Statewide Bank, Covington, LA. The assets of the closed banks were $1,288,600,000 and insured deposits were $1,232,500,000. The cost to the FDIC is estimated at $1,020,050,000. The closure data is available here, at the FDIC website.
According to our methodology, the recoverable value of the banks was only 79.16% of declared asset value. This makes the recoverability of this week's closures well above the cumulative recoverability since December of 2007, which stands at 57.68% (up sharply from 57.63%). This means that the failed banks' assets were worth approximately 79.16¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.68¢ on the dollar.
Cumulative cost to the FDIC to close all 191 banks (since December of 2007) was brought to $61,347,720,000. These closures bring the total declared assets of failed institutions to $562,753,780,000, and total FDIC-insured deposits to $385,967,840,000. The recoverable value of all failed banks was only $324,620,130,000 (57.68% of the declared value).
* * *
Stress in a State's banking system can be best seen in how costly that State's cumulative closures were to the FDIC. Below is the list of those States which likely have the most stressed banks, calculated by comparing that State's total FDIC cost of closures to their share of United States population. Only those States which have two or more closures are considered.
1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois
* * *
The recoverable value represents how much of declared assets are worth, by our estimate, on the open market. The following are the ten States with the lowest recoverable value, representing those States which have the most overvalued banking system assets. Only those States which have had two or more closures are considered in this analysis.
1. Florida (40.91%, up from 40.50%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%)
5. Nevada (50.22%)
6. Ohio (50.84%)
7. Washington (54.17%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Utah (58.13%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,020,050,000. The value now stands at $33,791,020,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
Showing posts with label economic indicators. Show all posts
Showing posts with label economic indicators. Show all posts
Saturday, March 13, 2010
Wednesday, March 10, 2010
FDIC Bank Failure Report (05 March 2010)
On 26 February and 05 March 2010, the Federal Deposit Insurance Corporation closed six banks: Rainier Pacific Bank, Tacoma, WA; Carson River Community Bank, Carson City, NV; Sun American Bank, Boca Raton, FL; Bank of Illinois, Normal, IL; Waterfield Bank, Germantown, MD; and Centennial Bank, Ogden, UT. The assets of the closed banks were $1,887,100,000 and insured deposits were $1,497,490,000. The cost to the FDIC is estimated at $419,710,000. The closure data is available here, at the FDIC website.
According to our methodology, the recoverable value of the banks was only 57.11% of declared asset value. This makes the recoverability of this week's closures well below the cumulative recoverability since December of 2007, which stands at 57.63% (essentially unchanged from 57.64%). This means that the failed banks' assets were worth approximately 57.11¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.63¢ on the dollar.
Cumulative cost to the FDIC to close all 191 banks (since December of 2007) was brought to $61,735,260,000. These closures bring the total declared assets of failed institutions to $561,465,180,000, and total FDIC-insured deposits to $384,735,340,000. The recoverable value of all failed banks was only $323,600,080,000 (57.63% of the declared value).
* * *
Stress in a State's banking system can be best seen in how costly that State's cumulative closures were to the FDIC. Below is the list of those States which likely have the most stressed banks, calculated by comparing that State's total FDIC cost of closures to their share of United States population. Only those States which have two or more closures are considered.
1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois
* * *
The recoverable value represents how much of declared assets are worth, by our estimate, on the open market. The following are the ten States with the lowest recoverable value, representing those States which have the most overvalued banking system assets. Only those States which have had two or more closures are considered in this analysis.
1. Florida (40.50%, up from 39.95%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%)
5. Nevada (50.22%, up from 49.81%)
6. Ohio (50.84%)
7. Washington (54.17%, down from 55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Utah, replacing Maryland (58.13%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $419,710,000. The value now stands at $34,811,070,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
According to our methodology, the recoverable value of the banks was only 57.11% of declared asset value. This makes the recoverability of this week's closures well below the cumulative recoverability since December of 2007, which stands at 57.63% (essentially unchanged from 57.64%). This means that the failed banks' assets were worth approximately 57.11¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.63¢ on the dollar.
Cumulative cost to the FDIC to close all 191 banks (since December of 2007) was brought to $61,735,260,000. These closures bring the total declared assets of failed institutions to $561,465,180,000, and total FDIC-insured deposits to $384,735,340,000. The recoverable value of all failed banks was only $323,600,080,000 (57.63% of the declared value).
* * *
Stress in a State's banking system can be best seen in how costly that State's cumulative closures were to the FDIC. Below is the list of those States which likely have the most stressed banks, calculated by comparing that State's total FDIC cost of closures to their share of United States population. Only those States which have two or more closures are considered.
1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois
* * *
The recoverable value represents how much of declared assets are worth, by our estimate, on the open market. The following are the ten States with the lowest recoverable value, representing those States which have the most overvalued banking system assets. Only those States which have had two or more closures are considered in this analysis.
1. Florida (40.50%, up from 39.95%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%)
5. Nevada (50.22%, up from 49.81%)
6. Ohio (50.84%)
7. Washington (54.17%, down from 55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Utah, replacing Maryland (58.13%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $419,710,000. The value now stands at $34,811,070,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
Saturday, February 20, 2010
FDIC Bank Failure Report
On 19/02/10, the Federal Deposit Insurance Corporation closed four banks: La Jolla Bank, FSB, La Jolla, CA; George Washington Savings Bank, Orland Park, IL; The La Costa National Bank, La Costa, CA; and Marco Community Bank, Marco Island, FL. The assets of the closed banks were $4,186,300,000 and insured deposits were $3,363,400,000. The cost to the FDIC is estimated at $1,068,740,000. The closure data is available here, at the FDIC website.
According to our methodology, the recoverable value of the banks was only 54.81% of the declared asset value. This makes the recoverability of this week's closures well below the cumulative recoverability since December of 2007, which stands at 57.64% (down from 57.66%). This means that the failed banks' assets were worth approximately 54.81¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.64¢ on the dollar.
Cumulative cost to the FDIC to close all 185 banks (since December of 2007) was brought to $60,715,560,000. These closures bring the total declared assets of failed institutions to $559,578,080,000, and total FDIC-insured deposits to $383,237,850,000. The recoverable value of all failed banks was only $322,522,290,000 (57.66% of the declared value).
* * *
Due to the increasing depth of data we have on hand, we have retired the bank closures to population analysis as a measure of stress. Instead, we will use analysis based on the cost of closures to the FDIC by State, in order to demonstrate which States are likely the most economically stressed in the United States. Only those States which have two or more bank closures are considered. Presently only six States are over our 'stressed' threshold.
1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois
* * *
The recoverable value represents how much of declared assets are worth, by our estimate, on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.95%, up from 39.81%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%, up from 45.13%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,068,740,000. The value now stands at $35,230,780,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
According to our methodology, the recoverable value of the banks was only 54.81% of the declared asset value. This makes the recoverability of this week's closures well below the cumulative recoverability since December of 2007, which stands at 57.64% (down from 57.66%). This means that the failed banks' assets were worth approximately 54.81¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.64¢ on the dollar.
Cumulative cost to the FDIC to close all 185 banks (since December of 2007) was brought to $60,715,560,000. These closures bring the total declared assets of failed institutions to $559,578,080,000, and total FDIC-insured deposits to $383,237,850,000. The recoverable value of all failed banks was only $322,522,290,000 (57.66% of the declared value).
* * *
Due to the increasing depth of data we have on hand, we have retired the bank closures to population analysis as a measure of stress. Instead, we will use analysis based on the cost of closures to the FDIC by State, in order to demonstrate which States are likely the most economically stressed in the United States. Only those States which have two or more bank closures are considered. Presently only six States are over our 'stressed' threshold.
1. Alabama
2. Georgia
3. Nevada
4. California
5. Florida
6. Illinois
* * *
The recoverable value represents how much of declared assets are worth, by our estimate, on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.95%, up from 39.81%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.47%, up from 45.13%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,068,740,000. The value now stands at $35,230,780,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click here to read the FDIC press release about the assessment). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
Saturday, February 13, 2010
FDIC Bank Failure Report
Well, what can we say. We forgot to do last week's closure. There were no closures by the FDIC this week, presumably caused by the massive snowstorm which has shut down most of the East Coast. However, we're confident the banking system will limp along just fine without the fine folks at the FDIC.
* * *
On 05/02/10, the Federal Deposit Insurance Corporation closed one bank: 1st American State Bank of Minnesota, Hancock, MN. The assets of the closed bank were $18,200,000 and insured deposits were $16,300,000. The cost to the FDIC is estimated at $3,100,000. The closure data is available here, at the FDIC website.
According to our methodology, the recoverable value of the bank was only 72.53% of the declared asset value. This makes the recoverability of this week's closures strikingly above the cumulative recoverability since December of 2007, which stands at 57.66% (unchanged from last report). This means that the failed bank's assets were worth approximately 72.53¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.66¢ on the dollar.
Cumulative cost-to-FDIC so far in the Depression was brought to $59,646,820,000. These closures bring the total declared assets of all 181 FDIC-failed banks (since December of 2007) to $555,391,780,000, and total FDIC-insured deposits to $379,874,450,000. The recoverable value of all failed banks was only $320,227,630,000 (57.66% of the declared value).
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Minnesota (up from #4)
4. Illinois (down from #3)
5. Utah
6. Kansas
7. Oregon
8. Missouri
9. Florida
10. Washington
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.81%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.13%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $3,100,000. The value now stands at $36,299,520,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click on the Meter's link to read the FDIC press release). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
* * *
On 05/02/10, the Federal Deposit Insurance Corporation closed one bank: 1st American State Bank of Minnesota, Hancock, MN. The assets of the closed bank were $18,200,000 and insured deposits were $16,300,000. The cost to the FDIC is estimated at $3,100,000. The closure data is available here, at the FDIC website.
According to our methodology, the recoverable value of the bank was only 72.53% of the declared asset value. This makes the recoverability of this week's closures strikingly above the cumulative recoverability since December of 2007, which stands at 57.66% (unchanged from last report). This means that the failed bank's assets were worth approximately 72.53¢ on the dollar; overall, all closures since December of 2007 were worth approximately 57.66¢ on the dollar.
Cumulative cost-to-FDIC so far in the Depression was brought to $59,646,820,000. These closures bring the total declared assets of all 181 FDIC-failed banks (since December of 2007) to $555,391,780,000, and total FDIC-insured deposits to $379,874,450,000. The recoverable value of all failed banks was only $320,227,630,000 (57.66% of the declared value).
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Minnesota (up from #4)
4. Illinois (down from #3)
5. Utah
6. Kansas
7. Oregon
8. Missouri
9. Florida
10. Washington
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.81%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.13%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%)
8. Georgia (55.33%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $3,100,000. The value now stands at $36,299,520,000. This is our estimate of how much money the FDIC has remaining from its special assessment of approximately $45 billion (click on the Meter's link to read the FDIC press release). Every week since December of 2009, we subtract that week's cost of bank closures to the FDIC from the standing total.
Saturday, January 30, 2010
FDIC Bank Failure Report
On 29/01/10, the Federal Deposit Insurance Corporation closed six banks: First National Bank of Georgia, Carrollton, GA; Florida Community Bank, Immokalee, FL; Marshall Bank, N.A., Hallock, MN; Community Bank & Trust, Cornelia, GA; First Regional Bank, Los Angeles, CA; and American Marine Bank, Bainbridge Island, WA. The assets of the closed banks were $5,531,200,000 and insured deposits were $4,896,600,000. The cost to the FDIC is estimated at $1,875,760,000.
According to our methodology, the recoverable value of the banks was only 54.61% of the declared asset value. This makes the recoverability of this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.66% (down slightly from last report's 57.69%).
Cumulative cost-to-FDIC so far in the Depression was brought to $59,643,720,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $555,373,580,000, and total FDIC-insured deposits to $379,858,150,000. The recoverable value of all failed banks was only $320,214,430,000 (57.69% of the declared value).
* * *
Once again the FDIC has pulled out a new trick: this week is was an "equity appreciation instrument," taken as "consideration for the transaction" of Florida Community Bank. We assume this means stock. If we're right, then it is simply another method by which the FDIC is extending store credit to acquiring institutions. What makes the situation seem all the more strange, is that the acquirer of Florida Community was a bank which was formed just last week: Premier American Bank, N.A., which purchased the failed Premier American Bank, with a "cash participant instrument" in the transaction.
Hmm... We have not heard back from the FDIC on our enquiry about the terms of the cash participant instrument, so we cannot conjecture about what exactly is going on. In general, however, we have to seriously question what the hell the FDIC is thinking: it is not only extending credit, but extending it to a newly-formed bank in two different forms within two weeks, potentially involving upwards of $850 million in assets. If the FDIC gave generous credit to Premier American - for example, only 10% downpayment or so - that's a lot of leverage for an institution, whose predecessor showed itself less than reliable.
We will still try to get more information from the FDIC about these instruments thrown about recently. If we do get something useful, we'll try to make better sense of the situation.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Oregon
8. Missouri
9. Florida
10. Washington (replacing Arizona)
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.81%, up from 39.38%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.13%, up from 45.06%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%, up from 54.11%)
8. Georgia (55.33%, up from 54.64%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,875,760,000. The value now stands at $36,302,620,000.
According to our methodology, the recoverable value of the banks was only 54.61% of the declared asset value. This makes the recoverability of this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.66% (down slightly from last report's 57.69%).
Cumulative cost-to-FDIC so far in the Depression was brought to $59,643,720,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $555,373,580,000, and total FDIC-insured deposits to $379,858,150,000. The recoverable value of all failed banks was only $320,214,430,000 (57.69% of the declared value).
* * *
Once again the FDIC has pulled out a new trick: this week is was an "equity appreciation instrument," taken as "consideration for the transaction" of Florida Community Bank. We assume this means stock. If we're right, then it is simply another method by which the FDIC is extending store credit to acquiring institutions. What makes the situation seem all the more strange, is that the acquirer of Florida Community was a bank which was formed just last week: Premier American Bank, N.A., which purchased the failed Premier American Bank, with a "cash participant instrument" in the transaction.
Hmm... We have not heard back from the FDIC on our enquiry about the terms of the cash participant instrument, so we cannot conjecture about what exactly is going on. In general, however, we have to seriously question what the hell the FDIC is thinking: it is not only extending credit, but extending it to a newly-formed bank in two different forms within two weeks, potentially involving upwards of $850 million in assets. If the FDIC gave generous credit to Premier American - for example, only 10% downpayment or so - that's a lot of leverage for an institution, whose predecessor showed itself less than reliable.
We will still try to get more information from the FDIC about these instruments thrown about recently. If we do get something useful, we'll try to make better sense of the situation.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Oregon
8. Missouri
9. Florida
10. Washington (replacing Arizona)
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.81%, up from 39.38%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.13%, up from 45.06%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Washington (55.25%, up from 54.11%)
8. Georgia (55.33%, up from 54.64%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,875,760,000. The value now stands at $36,302,620,000.
Wednesday, January 27, 2010
FDIC Bank Failure Report - Extra Late Edition
On 22/01/10, the Federal Deposit Insurance Corporation closed five banks: Premier American Bank, Miami, FL; Bank of Leeton, Leeton, MO; Charter Bank, Santa Fe, NM; Evergreen Bank, Seattle, WA; and Columbia River Bank, The Dalles, OR. The assets of the closed banks were $3,159,500,000 and insured deposits were $2,637,600,000. The cost to the FDIC is estimated at $546,210,000.
According to our methodology, the recoverable value of the banks were only 66.19% of the declared asset value. This makes the recoverability of this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.69% (up slightly from last report's 57.64%).
Cumulative cost-to-FDIC so far in the Depression was brought to $57,767,960,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $549,842,380,000, and total FDIC-insured deposits to $374,961,550,000. The recoverable value of all failed banks was only $317,193,590,000 (57.69% of the declared value).
* * *
We noticed with a handful of these latest closures, that the FDIC has "acquire[d] a cash participant instrument," adding that "[t]his instrument serves as additional consideration for the transaction." At present we assume this means the FDIC is providing financing for the acquiring bank; in essence, the Government is giving store credit for the assets of dead banks. How this is a good idea, we really don't know, but we can only assume the regulatory geniuses at the FDIC have a firm grasp on things.
If indeed the FDIC is extending store credit to acquirers, we posit this means the bank catastrophe in the United States has entered a new phase of... well, catastrophe. Not only did the assets of Evergreen and Premier American start rotting when exposed to oxygen, they were so horrible the FDIC had to give financing to get rid of the muck. "Here, take the assets for awhile and give them a try in your books," the regulators must have told the acquirers; "we're so confident you'll love them, you don't even have to give us a down-payment." If those acquiring bank had had any self-respect, they would have run away screaming.
Once again we can't help but to think that the FDIC is setting itself up for a world of hurt. By extending store credit - if indeed that is what the "cash participant instrument" is - the FDIC is betting that a recovery will help strengthen the acquiring institutions sufficiently, that sucking up the full cost of the filth they bought on credit will not, in turn, cause them to croak. Instead, we're quite convinced by this move that a major bank failure is in the works, whether or not the FDIC is aware of it. If bank assets have gotten to the point where they have to be force-fed, then there's a big bank out there loaded to the gunwales with toxic sludge. The questions are: which bank, and when? Alas, dear Reader, we have no answers.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Oregon (up from #9)
8. Missouri
9. Florida (down from #7)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.38%, up from 38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Ohio, up from #7 (50.84%)
7. Washington, down from #6 (54.11%, up from 50.62%)
8. Georgia (54.64%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $546,210,000. The value now stands at $38,178,380,000.
According to our methodology, the recoverable value of the banks were only 66.19% of the declared asset value. This makes the recoverability of this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.69% (up slightly from last report's 57.64%).
Cumulative cost-to-FDIC so far in the Depression was brought to $57,767,960,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $549,842,380,000, and total FDIC-insured deposits to $374,961,550,000. The recoverable value of all failed banks was only $317,193,590,000 (57.69% of the declared value).
* * *
We noticed with a handful of these latest closures, that the FDIC has "acquire[d] a cash participant instrument," adding that "[t]his instrument serves as additional consideration for the transaction." At present we assume this means the FDIC is providing financing for the acquiring bank; in essence, the Government is giving store credit for the assets of dead banks. How this is a good idea, we really don't know, but we can only assume the regulatory geniuses at the FDIC have a firm grasp on things.
If indeed the FDIC is extending store credit to acquirers, we posit this means the bank catastrophe in the United States has entered a new phase of... well, catastrophe. Not only did the assets of Evergreen and Premier American start rotting when exposed to oxygen, they were so horrible the FDIC had to give financing to get rid of the muck. "Here, take the assets for awhile and give them a try in your books," the regulators must have told the acquirers; "we're so confident you'll love them, you don't even have to give us a down-payment." If those acquiring bank had had any self-respect, they would have run away screaming.
Once again we can't help but to think that the FDIC is setting itself up for a world of hurt. By extending store credit - if indeed that is what the "cash participant instrument" is - the FDIC is betting that a recovery will help strengthen the acquiring institutions sufficiently, that sucking up the full cost of the filth they bought on credit will not, in turn, cause them to croak. Instead, we're quite convinced by this move that a major bank failure is in the works, whether or not the FDIC is aware of it. If bank assets have gotten to the point where they have to be force-fed, then there's a big bank out there loaded to the gunwales with toxic sludge. The questions are: which bank, and when? Alas, dear Reader, we have no answers.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Oregon (up from #9)
8. Missouri
9. Florida (down from #7)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (39.38%, up from 38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Ohio, up from #7 (50.84%)
7. Washington, down from #6 (54.11%, up from 50.62%)
8. Georgia (54.64%)
9. North Carolina (56.70%)
10. Maryland (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $546,210,000. The value now stands at $38,178,380,000.
Tuesday, January 19, 2010
FDIC Bank Failure Report - Late Edition
On 15/01/10, the Federal Deposit Insurance Corporation closed three banks: Town Community Bank & Trust, Antioch, IL; St. Stephen State Bank, St. Stephen, MN; and Barnes Banking Company, Kaysville, UT.The assets of the closed banks were $922,100,000 and insured deposits were $877,300,000. The cost to the FDIC is estimated at $296,300,000.
According to our methodology, the recoverable value of the bank was only 63.01% of the declared asset value. This makes the recoverability of this week's closure distinctly above the cumulative recoverability since December of 2007, which stands at 57.64% (essentially unchanged from last report's 57.63%).
Cumulative cost-to-FDIC so far in the Depression was brought to $57,221,740,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $546,682,880,000, and total FDIC-insured deposits to $372,323,950,000. The recoverable value of all failed banks was only $315,102,210,000 (57.64% of the declared value).
* * *
We don't have much to say about these closures, other than to note that the FDIC was forced to create a Deposit Insurance National Bank to facilitate the liquidation of the failed Barnes Banking Company. What this means, of course, is that Barnes was so rank the FDIC could not possibly slather enough perfume on it to cover up the stench. No other institutions found Barnes to be agreeable as a dance partner, as it were, so the FDIC was left with the corpse. We suspect that Barnes' assets will end up in a future Multibank Structured Transaction, like the $1.02 billion of rotting assets recently auctioned off, for 22 cents on the dollar.
We'd love to see the entire U.S. banking system priced as realistically as that MST!
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #5)
5. Utah (up from #6)
6. Kansas (down from #4)
7. Florida
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Washington (50.62%)
7. Ohio (50.84%)
8. Georgia (54.64%)
9. North Carolina, up from #10 (56.70%)
10. Maryland, new to list (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $296,300,000. The value now stands at $38,724,590,000.
According to our methodology, the recoverable value of the bank was only 63.01% of the declared asset value. This makes the recoverability of this week's closure distinctly above the cumulative recoverability since December of 2007, which stands at 57.64% (essentially unchanged from last report's 57.63%).
Cumulative cost-to-FDIC so far in the Depression was brought to $57,221,740,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $546,682,880,000, and total FDIC-insured deposits to $372,323,950,000. The recoverable value of all failed banks was only $315,102,210,000 (57.64% of the declared value).
* * *
We don't have much to say about these closures, other than to note that the FDIC was forced to create a Deposit Insurance National Bank to facilitate the liquidation of the failed Barnes Banking Company. What this means, of course, is that Barnes was so rank the FDIC could not possibly slather enough perfume on it to cover up the stench. No other institutions found Barnes to be agreeable as a dance partner, as it were, so the FDIC was left with the corpse. We suspect that Barnes' assets will end up in a future Multibank Structured Transaction, like the $1.02 billion of rotting assets recently auctioned off, for 22 cents on the dollar.
We'd love to see the entire U.S. banking system priced as realistically as that MST!
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no weighting with assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #5)
5. Utah (up from #6)
6. Kansas (down from #4)
7. Florida
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Washington (50.62%)
7. Ohio (50.84%)
8. Georgia (54.64%)
9. North Carolina, up from #10 (56.70%)
10. Maryland, new to list (56.90%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $296,300,000. The value now stands at $38,724,590,000.
Sunday, January 10, 2010
FDIC Bank Failure Report
On 8/01/10, the Federal Deposit Insurance Corporation rang in the New Year closing one bank: Horizon Bank of Bellingham, Washington.The assets of the closed bank were $1,300,000,000 and deposits were $1,100,000,000. The cost to the FDIC is estimated at $539,100,000.
According to our methodology, the recoverable value of the bank was only 43.15% of the declared asset value. This makes the recoverability of this week's closure distinctly below the cumulative recoverability since December of 2007, which stands at 57.63% (down slightly from last report's 57.66%).
Cumulative cost-to-FDIC so far in the Depression was brought to $56,923,690,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $545,760,780,000, and total FDIC-insured deposits to $371,446,650,000. The recoverable value of all failed banks was only $314,522,960,000 (57.63% of the declared value).
* * *
It appears Santa Claus has not fixed the US banking system, after all. This week's closed bank was a particularly putrid affair and we consider it a bad omen for the rest of the year.
The Federal Reserve system laid a sulfurous egg this week too, announcing that bank consumer lending is declining at an 8 1/2 percent annual rate as of November. Revolving credit, primarily credit card lending is declining at a whopping annual rate of 18.5 percent! There is clearly no recovery in bank lending. We suspect that is in part due to the sorry state of household finances, but more so due to the utter insolvency of the banking system as a whole. The credit unions and banks out there that are still solvent enough to lend just cannot pick up the slack from the collapse of the system.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas
5. Minnesota
6. Utah
7. Florida
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Washington, up from #9 (50.62% down from 56.18%)
7. Ohio (50.84%)
8. Georgia (54.64%)
9. Utah (55.45%)
10. North Carolina (56.70%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $539,100,000. The value now stands at $39,020,890,000.
According to our methodology, the recoverable value of the bank was only 43.15% of the declared asset value. This makes the recoverability of this week's closure distinctly below the cumulative recoverability since December of 2007, which stands at 57.63% (down slightly from last report's 57.66%).
Cumulative cost-to-FDIC so far in the Depression was brought to $56,923,690,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $545,760,780,000, and total FDIC-insured deposits to $371,446,650,000. The recoverable value of all failed banks was only $314,522,960,000 (57.63% of the declared value).
* * *
It appears Santa Claus has not fixed the US banking system, after all. This week's closed bank was a particularly putrid affair and we consider it a bad omen for the rest of the year.
The Federal Reserve system laid a sulfurous egg this week too, announcing that bank consumer lending is declining at an 8 1/2 percent annual rate as of November. Revolving credit, primarily credit card lending is declining at a whopping annual rate of 18.5 percent! There is clearly no recovery in bank lending. We suspect that is in part due to the sorry state of household finances, but more so due to the utter insolvency of the banking system as a whole. The credit unions and banks out there that are still solvent enough to lend just cannot pick up the slack from the collapse of the system.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas
5. Minnesota
6. Utah
7. Florida
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%)
2. Colorado (42.80%)
3. Michigan (43.53%)
4. California (45.06%)
5. Nevada (49.81%)
6. Washington, up from #9 (50.62% down from 56.18%)
7. Ohio (50.84%)
8. Georgia (54.64%)
9. Utah (55.45%)
10. North Carolina (56.70%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $539,100,000. The value now stands at $39,020,890,000.
Saturday, December 19, 2009
FDIC Bank Failure Report
On 18/12/09, the Federal Deposit Insurance Corporation closed seven banks: Rockbridge Commercial Bank of Atlanta, Georgia; Peoples First Community Bank of Panama City Florida; Citizens State Bank of New Baltimore, Michigan; New South FSB of Irondale, Alabama; Independent Bankers' Bank of Springfield, Illinois; Imperial Capital Bank of La Jolla, California; and First Federal Bank of California in Santa Monica, California. The total assets of the closed bank were $14,448,100,000, and total deposits were $11,157,130,000. The cost to the FDIC is estimated at $1,827,420,000.
According to our methodology, the recoverable value of the banks was only 64.57% of the declared asset value. This makes the recoverability of this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.66% (up slightly from last report's 57.48%).
Cumulative cost-to-FDIC so far in the Depression was brought to $56,384,590,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $544,460,780,000, and total FDIC-insured deposits to $370,346,650,000. The recoverable value of all failed banks was only $313,962,060,000 (57.66% of the declared value).
* * *
This week's closures were definitely not typical, as there were a number of straight out liquidations; three, to be exact. One of those liquidations (Rockbridge) will be complete by Monday! We pity the customers whose outstanding checks will be bouncing next week. We suspect a bit of year-end housekeeping on the part of the FDIC, as they will be kicking back between the 24th and 28th of December. Further closures this year are doubtful due to the upcoming holiday; perhaps Santa Claus has made the banking system all better.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas
5. Minnesota
6. Utah
7. Florida (up from #8)
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%, up from 36.65%)
2. Colorado, up from #4 (42.80%)
3. Michigan (43.53% up from 42.78%)
4. California, down from #2 (45.06% up from 42.28%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Georgia (54.64% up from 54.62%)
8. Utah (55.45%)
9. Washington (56.18%)
10. North Carolina (56.70%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,827,420,000. The value now stands at $39,559,990,000.
According to our methodology, the recoverable value of the banks was only 64.57% of the declared asset value. This makes the recoverability of this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.66% (up slightly from last report's 57.48%).
Cumulative cost-to-FDIC so far in the Depression was brought to $56,384,590,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $544,460,780,000, and total FDIC-insured deposits to $370,346,650,000. The recoverable value of all failed banks was only $313,962,060,000 (57.66% of the declared value).
* * *
This week's closures were definitely not typical, as there were a number of straight out liquidations; three, to be exact. One of those liquidations (Rockbridge) will be complete by Monday! We pity the customers whose outstanding checks will be bouncing next week. We suspect a bit of year-end housekeeping on the part of the FDIC, as they will be kicking back between the 24th and 28th of December. Further closures this year are doubtful due to the upcoming holiday; perhaps Santa Claus has made the banking system all better.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas
5. Minnesota
6. Utah
7. Florida (up from #8)
8. Missouri
9. Oregon
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (38.89%, up from 36.65%)
2. Colorado, up from #4 (42.80%)
3. Michigan (43.53% up from 42.78%)
4. California, down from #2 (45.06% up from 42.28%)
5. Nevada (49.81%)
6. Ohio (50.84%)
7. Georgia (54.64% up from 54.62%)
8. Utah (55.45%)
9. Washington (56.18%)
10. North Carolina (56.70%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $1,827,420,000. The value now stands at $39,559,990,000.
Wednesday, December 16, 2009
FDIC Bank Failure Report - Updated
This report is current as of 11 December. The report for this weekend's closures will follow.
Well, 158 FDIC press releases later, we've finished updating our information. We'll work on historical data (i.e. before the past two weeks) in the near future.
* * *
On 11/12/09, the Federal Deposit Insurance Corporation closed three banks: SolutionsBank, of Overland Park, KS; Valley Capital Bank, of Mesa AZ; and Republic Federal Bank, of Miami, FL. The total assets of the closed bank were $984,400,000, and total deposits were $815,300,000. The cost to the FDIC is estimated at $257,160,000.
According to our methodology, the recoverable value of the banks were $558,140,000, or only 56.70% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.48% (unchanged from last report's revised recoverability of 57.48%).
Cumulative cost-to-FDIC so far in the Depression was brought to $54,557,170,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $530,012,680,000, and total FDIC-insured deposits to $359,189,520,000. The recoverable value of all failed banks was only $304,632,350,000 (57.48% of the declared value).
* * *
The changes we made to our analysis (i.e. taking into account premiums/discounts which acquiring banks paid for failed banks' insured deposits) made a distinct difference. A difference of 0.08% - the difference between the revised recoverability (57.48%), and the unrevised (57.56%) - might not seem like much, but applied to the assets of all banks closed so far, the assets loose an additional $424 million in value. Isn't leverage a beautiful thing, dear Reader?
We don't have much to say about these three closures, however; the seem fairly average... which is probably a problem. We still feel in the FDIC is managing its closures to pick and choose its cost. A question occures to us as we write: does the FDIC pick their cost first, and then close the banks which fit within the cost they selected beforehand? Inquiring minds want to know.
* * *
Because of the revisions we made to our data, we are updating the Frugal Scotsman's Ten Nastiest Bank Closures To Date. Here are the Gruesome Tensome:
1. IndyMac (CA) - 22.99%
2. BankUnited FSB (FL) - 28.91%
3. First Bank of Idaho - 37.10%, revised down from 37.39%
4. Community Bank of Nevada - 39.10%
5. Franklin Bank (TX) - up from #10 at 39.94%, revised down from 41.18%
6. Sherman County Bank (NE) - new to list, 40.06%
7. Horizon Bank (MN) - up from #8, 40.39%, revised down from 40.98%
8. First Bank of Beverly Hills (CA) - down from #6, 40.39%
9. Riverside Bank of the Gulf Coast (FL) - new to list, 40.60%
10. Century Bank FSB (FL) - down from #5, 40.72%, revised up from 39.42%
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas (up from #6)
5. Minnesota (down from #4)
6. Utah (down from #5)
7. Missouri
8. Florida (up from #9)
9. Oregon (down from #8)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.65%, up from 36.13%)
2. California (42.28, revised down from 42.43%)
3. Michigan, up from #4 (42.78%, revised down from 43.18%)
4. Colorado down from #3 (42.80, revised up from 42.76%)
5. Nevada (49.81, revised down from 50.13%)
6. Ohio (50.84. revised down from 50.91%)
7. Georgia (54.62%, revised down from 54.75%)
8. Utah (55.45%. revised up from 55.39%)
9. Washington, up from #10 (56.18%)
10. North Carolina, new to list (56.70%)
* * *
Due to the revisions, the FDIC did not spend as much money as we thought previously (it's complicated, don't ask). The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $257,160,000, and also revised upward. The value stands at $41,387,410,000.
Well, 158 FDIC press releases later, we've finished updating our information. We'll work on historical data (i.e. before the past two weeks) in the near future.
* * *
On 11/12/09, the Federal Deposit Insurance Corporation closed three banks: SolutionsBank, of Overland Park, KS; Valley Capital Bank, of Mesa AZ; and Republic Federal Bank, of Miami, FL. The total assets of the closed bank were $984,400,000, and total deposits were $815,300,000. The cost to the FDIC is estimated at $257,160,000.
According to our methodology, the recoverable value of the banks were $558,140,000, or only 56.70% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.48% (unchanged from last report's revised recoverability of 57.48%).
Cumulative cost-to-FDIC so far in the Depression was brought to $54,557,170,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $530,012,680,000, and total FDIC-insured deposits to $359,189,520,000. The recoverable value of all failed banks was only $304,632,350,000 (57.48% of the declared value).
* * *
The changes we made to our analysis (i.e. taking into account premiums/discounts which acquiring banks paid for failed banks' insured deposits) made a distinct difference. A difference of 0.08% - the difference between the revised recoverability (57.48%), and the unrevised (57.56%) - might not seem like much, but applied to the assets of all banks closed so far, the assets loose an additional $424 million in value. Isn't leverage a beautiful thing, dear Reader?
We don't have much to say about these three closures, however; the seem fairly average... which is probably a problem. We still feel in the FDIC is managing its closures to pick and choose its cost. A question occures to us as we write: does the FDIC pick their cost first, and then close the banks which fit within the cost they selected beforehand? Inquiring minds want to know.
* * *
Because of the revisions we made to our data, we are updating the Frugal Scotsman's Ten Nastiest Bank Closures To Date. Here are the Gruesome Tensome:
1. IndyMac (CA) - 22.99%
2. BankUnited FSB (FL) - 28.91%
3. First Bank of Idaho - 37.10%, revised down from 37.39%
4. Community Bank of Nevada - 39.10%
5. Franklin Bank (TX) - up from #10 at 39.94%, revised down from 41.18%
6. Sherman County Bank (NE) - new to list, 40.06%
7. Horizon Bank (MN) - up from #8, 40.39%, revised down from 40.98%
8. First Bank of Beverly Hills (CA) - down from #6, 40.39%
9. Riverside Bank of the Gulf Coast (FL) - new to list, 40.60%
10. Century Bank FSB (FL) - down from #5, 40.72%, revised up from 39.42%
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Kansas (up from #6)
5. Minnesota (down from #4)
6. Utah (down from #5)
7. Missouri
8. Florida (up from #9)
9. Oregon (down from #8)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.65%, up from 36.13%)
2. California (42.28, revised down from 42.43%)
3. Michigan, up from #4 (42.78%, revised down from 43.18%)
4. Colorado down from #3 (42.80, revised up from 42.76%)
5. Nevada (49.81, revised down from 50.13%)
6. Ohio (50.84. revised down from 50.91%)
7. Georgia (54.62%, revised down from 54.75%)
8. Utah (55.45%. revised up from 55.39%)
9. Washington, up from #10 (56.18%)
10. North Carolina, new to list (56.70%)
* * *
Due to the revisions, the FDIC did not spend as much money as we thought previously (it's complicated, don't ask). The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $257,160,000, and also revised upward. The value stands at $41,387,410,000.
Wednesday, December 9, 2009
FDIC Bank Failure Report - Insanely Late Edition
This past weekend, the Federal Deposit Insurance Corporation closed six banks: Buckhead Community Bank of Atlanta, Georgia; First Security Bank of Norcross, Georgia; Tattnall Bank of Reidsville, Georgia; AmTrust Bank of Cleveland, Ohio; Benchmark Bank of Aurora, Illinois; and Greater Atlantic Bank of Reston, Virginia. The total assets of the closed bank were $13,424,600,000, and total deposits were $9,368,300,000. The cost to the FDIC is estimated at $2,386,400,000.
According to our methodology, the recoverable value of the banks were $6,981,900,000, or only 52.01% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.56% (down from last report's 57.70%).
Cumulative cost-to-FDIC so far in the Depression was brought to $53,886,900,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $529,028,280,000, and total FDIC-insured deposits to $358,374,220,000. The recoverable value of all failed banks was only $304,487,320,000 (57.56% of the declared value).
* * *
As if to make up for the prior two weeks, the FDIC went to town. Following its usual pattern, it muted the failure of a moderately large regional bank - AmTrust - by closing it along with several smaller banks. AmTrust was a particularly sad case with a recoverable value according to our method of only 50% of assets. It had been on a death watch for over a year having received a cease-and-desist order from the Office of Thrift Supervision in the fall of 2008. One wonders how much extra the FDIC's dithering cost the Deposit Insurance Fund.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.13%)
2. California (42.43%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Ohio (50.91%) - new to the list due to now having two closures
7. Georgia (54.75% up from 53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $2,386,400,000. The value stands at $41,600,600,000.
According to our methodology, the recoverable value of the banks were $6,981,900,000, or only 52.01% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.56% (down from last report's 57.70%).
Cumulative cost-to-FDIC so far in the Depression was brought to $53,886,900,000. These closures bring the total declared assets of FDIC-failed banks (since December of 2007) to $529,028,280,000, and total FDIC-insured deposits to $358,374,220,000. The recoverable value of all failed banks was only $304,487,320,000 (57.56% of the declared value).
* * *
As if to make up for the prior two weeks, the FDIC went to town. Following its usual pattern, it muted the failure of a moderately large regional bank - AmTrust - by closing it along with several smaller banks. AmTrust was a particularly sad case with a recoverable value according to our method of only 50% of assets. It had been on a death watch for over a year having received a cease-and-desist order from the Office of Thrift Supervision in the fall of 2008. One wonders how much extra the FDIC's dithering cost the Deposit Insurance Fund.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.13%)
2. California (42.43%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Ohio (50.91%) - new to the list due to now having two closures
7. Georgia (54.75% up from 53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $2,386,400,000. The value stands at $41,600,600,000.
Monday, November 23, 2009
FDIC Bank Failure Report - Super Late Edition
We're very late on this one; apologies. We saw the FDIC had closed only one bank on Friday evening, and thought "naw, they wouldn't close only one bank." Well, they did, and we forgot to write about it.
* * *
This past weekend, the Federal Deposit Insurance Corporation closed one bank: Commerce Bank of Southwestern Florida, Fort Myers, FL. The total assets of the closed bank were $79,700,000, and total deposits were approximately $76,700,000. The cost to the FDIC is estimated at $23,600,000.
According to our methodology, the recoverable value of the bank was $53,100,000, or only 66.62% of the declared asset value. This makes this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.70% (unchanged from last week).
Cumulative cost-to-FDIC so far in the Depression was brought to $51,500,500,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $515,603,680,000, and total FDIC-insured deposits to $349,005,920,000. The recoverable value of all failed banks was only $297,505,320,000 (57.70% of the declared value).
* * *
We're not quite sure what the FDIC is thinking, but perhaps they don't either. Even so, it is interesting that Florida saw the only bank failure, despite the relative smallness of the closure. We really don't know what to say about that, because we're fairly confident the United States' banking system has not enjoyed the 'laying on of hands' over the past week. Sickness is still in the system, and it appears the FDIC would prefer to let the sickness spread.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.13, up from 36.00%)
2. California (42.43%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Georgia (53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $26,600,000. The value stands at $43,987,000.
* * *
This past weekend, the Federal Deposit Insurance Corporation closed one bank: Commerce Bank of Southwestern Florida, Fort Myers, FL. The total assets of the closed bank were $79,700,000, and total deposits were approximately $76,700,000. The cost to the FDIC is estimated at $23,600,000.
According to our methodology, the recoverable value of the bank was $53,100,000, or only 66.62% of the declared asset value. This makes this week's closures distinctly above the cumulative recoverability since December of 2007, which stands at 57.70% (unchanged from last week).
Cumulative cost-to-FDIC so far in the Depression was brought to $51,500,500,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $515,603,680,000, and total FDIC-insured deposits to $349,005,920,000. The recoverable value of all failed banks was only $297,505,320,000 (57.70% of the declared value).
* * *
We're not quite sure what the FDIC is thinking, but perhaps they don't either. Even so, it is interesting that Florida saw the only bank failure, despite the relative smallness of the closure. We really don't know what to say about that, because we're fairly confident the United States' banking system has not enjoyed the 'laying on of hands' over the past week. Sickness is still in the system, and it appears the FDIC would prefer to let the sickness spread.
* * *
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.13, up from 36.00%)
2. California (42.43%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Georgia (53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
* * *
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets adjusted with a subtraction of $26,600,000. The value stands at $43,987,000.
Saturday, November 14, 2009
FDIC Bank Failure Report
This weekend, the Federal Deposit Insurance Corporation closed three banks: Century Bank, FSB of Sarasota, Florida; Orion Bank of Naples, Florida; and Pacific Coast National Bank of San Clemente, California. The total assets of the closed banks were $3,562,400,000, and total deposits were approximately $2,861,900,000. The cost to the FDIC is estimated at $968,400,000.
According to our methodology, the recoverable value of the banks was $1,875,500,000, or only 52.65% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.70% (down from last week's 57.73%).
Cumulative cost-to-FDIC so far in the Depression was brought to $51,476,900,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $515,523,980,000, and total FDIC-insured deposits to $348,929,220,000. The recoverable value of all failed banks was only $297,452,320,000 (57.70% of the declared value).
***
The closures in Florida confirm our model of Florida as the state with the poorest quality assets. Century Bank had a recoverable value by our model of only 39.42% - the 5th worst so far in the Depression. In keeping with the spirit of poor quality of assets, we are introducing the Frugal Scotsman's Ten Nastiest Bank Closures To Date. We will be updating this list as newer, nastier closures occur. We are quite confident that this will be a regular feature, given the trend in place of deteriorating bank asset quality.
1. IndyMac (CA) - 22.99%
2. BankUnited FSB (FL) - 28.91%
3. First Bank of Idaho - 37.39%
4. Community Bank of Nevada - 39.10%
5. Century Bank FSB (FL) - 39.42%
6. First Bank of Beverly Hills (CA) - 40.39%
7. Bank of Clark County (WA) - 40.81%
8. Horizon Bank (MN) - 40.98%
9. Union Bank (AZ) - 41.13%
10. Franklin Bank (TX) - 41.18%
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida (up from #11)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.00, up from 32.44%)
2. California (42.43%, up from 42.37%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Georgia (53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets its first adjustment now with a subtraction of 986,400,000. The value stands at 44,013,600. Forty-four weeks to go!
According to our methodology, the recoverable value of the banks was $1,875,500,000, or only 52.65% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.70% (down from last week's 57.73%).
Cumulative cost-to-FDIC so far in the Depression was brought to $51,476,900,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $515,523,980,000, and total FDIC-insured deposits to $348,929,220,000. The recoverable value of all failed banks was only $297,452,320,000 (57.70% of the declared value).
***
The closures in Florida confirm our model of Florida as the state with the poorest quality assets. Century Bank had a recoverable value by our model of only 39.42% - the 5th worst so far in the Depression. In keeping with the spirit of poor quality of assets, we are introducing the Frugal Scotsman's Ten Nastiest Bank Closures To Date. We will be updating this list as newer, nastier closures occur. We are quite confident that this will be a regular feature, given the trend in place of deteriorating bank asset quality.
1. IndyMac (CA) - 22.99%
2. BankUnited FSB (FL) - 28.91%
3. First Bank of Idaho - 37.39%
4. Community Bank of Nevada - 39.10%
5. Century Bank FSB (FL) - 39.42%
6. First Bank of Beverly Hills (CA) - 40.39%
7. Bank of Clark County (WA) - 40.81%
8. Horizon Bank (MN) - 40.98%
9. Union Bank (AZ) - 41.13%
10. Franklin Bank (TX) - 41.18%
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri
8. Oregon
9. Florida (up from #11)
10. Arizona
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (36.00, up from 32.44%)
2. California (42.43%, up from 42.37%)
3. Colorado (42.76%)
4. Michigan (43.18%)
5. Nevada (50.13%)
6. Georgia (53.79%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
The Frugal Scotsman's FDIC Cash Burn Through O'Meter gets its first adjustment now with a subtraction of 986,400,000. The value stands at 44,013,600. Forty-four weeks to go!
Saturday, November 7, 2009
FDIC Bank Failure Report
This week, the Federal Deposit Insurance Corporation closed five banks: United Security Bank, of Sparta, GA; Home Federal Savings Bank, of Detroit, MI; Prosperan Bank, of Oakdale, MN; Gateway Bank of St. Louis, of St. Louis, MO; and United Commercial Bank, of San Francisco, CA. The total assets of the closed banks were $11,599,100,000, and total deposits were approximately $7,866,300,000. The cost to the FDIC is estimated at $1,532,700,000.
According to our methodology, the recoverable value of the banks was $6,333,600,000, or only 54.60% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.73% (down from last week's 57.81%).
Cumulative cost-to-FDIC so far in the Depression was brought to $50,490,500,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $511,961,580,000, and total FDIC-insured deposits to $346,067,320,000. The recoverable value of all failed banks was only $295,576,820,000 (57.73% of the declared value).
***
The situation with United Commercial Bank (UCB) is an interesting one, as it marks a degree of cooperation previously unseen in the banking world. UCB, UCB of Hong Kong, and UCB-China in Shanghai were all closed by the FDIC's actions, in cooperation with the Hong Kong government and the China Banking Regulatory Commission. Although it's a moment to wave the non-existent flag of international fellowship and all that, we would like to point out just how bad this looks to us.
The FDIC's actions show just how interconnected the financial systems of the World are, and how terribly difficult it is to find any sort of separation across national borders; this will make sorting failed banks like UCB very difficult, especially if non-US agencies are not quite as cooperative as they were this time. In addition, it's all well and good, as far as the average U.S. Citizen is concerned, that the FDIC took over banks in China; what happens if and when China starts taking over banks in the United States?
But leaving that aside, we have a loose prediction for the general trend of future, weekly FDIC closures: they will likely consist of a handful of minor community banks, and one large-ish bank. This week's format is a good example of what we're walking about, as the banks other than UCB were quite small indeed. Since we are fully convinced the FDIC is effectively out of money, this would suggest that the banks which the FDIC manages to scrape up the cash to close are the worst imaginable banks in the United States... leaving aside such cesspools as Citibank, Wells Fargo, Bank of America, JPMorgan Chase, et al.
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri (up from #8)
8. Oregon (down from #7)
9. Arizona
10. Colorado
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (32.44%)
2. California (42.37%, up from 40.11%)
3. Colorado (42.76%)
4. Michigan (43.18%, up from 43.07%)
5. Nevada (50.13%)
6. Georgia (53.79%, up from 53.74%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
We're very pleased with how these two lists have shaped up; the movement from week to week is becoming very slight, so we're pretty confident this gives a relatively accurate idea of how badly off these various States and the banks within them are. Of course, our analysis only reflects those States which have had over two bank failures, so that leaves a good portion of the Union (and its... extensions) not reflected in our report.
Nevertheless, these five States - Georgia, Utah, Arizona, Nevada, and Colorado, in no particular order - are likely to be among the worst-off, as they are represented in both the preceeding lists. We really can't say which of those is the king of the dung heap, as it were, because we still haven't figured out how to compare apples and oranges.
According to our methodology, the recoverable value of the banks was $6,333,600,000, or only 54.60% of the declared asset value. This makes this week's closures distinctly below the cumulative recoverability since December of 2007, which stands at 57.73% (down from last week's 57.81%).
Cumulative cost-to-FDIC so far in the Depression was brought to $50,490,500,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $511,961,580,000, and total FDIC-insured deposits to $346,067,320,000. The recoverable value of all failed banks was only $295,576,820,000 (57.73% of the declared value).
***
The situation with United Commercial Bank (UCB) is an interesting one, as it marks a degree of cooperation previously unseen in the banking world. UCB, UCB of Hong Kong, and UCB-China in Shanghai were all closed by the FDIC's actions, in cooperation with the Hong Kong government and the China Banking Regulatory Commission. Although it's a moment to wave the non-existent flag of international fellowship and all that, we would like to point out just how bad this looks to us.
The FDIC's actions show just how interconnected the financial systems of the World are, and how terribly difficult it is to find any sort of separation across national borders; this will make sorting failed banks like UCB very difficult, especially if non-US agencies are not quite as cooperative as they were this time. In addition, it's all well and good, as far as the average U.S. Citizen is concerned, that the FDIC took over banks in China; what happens if and when China starts taking over banks in the United States?
But leaving that aside, we have a loose prediction for the general trend of future, weekly FDIC closures: they will likely consist of a handful of minor community banks, and one large-ish bank. This week's format is a good example of what we're walking about, as the banks other than UCB were quite small indeed. Since we are fully convinced the FDIC is effectively out of money, this would suggest that the banks which the FDIC manages to scrape up the cash to close are the worst imaginable banks in the United States... leaving aside such cesspools as Citibank, Wells Fargo, Bank of America, JPMorgan Chase, et al.
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in each State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota
5. Utah
6. Kansas
7. Missouri (up from #8)
8. Oregon (down from #7)
9. Arizona
10. Colorado
The recoverable value represents how much of declared assets are worth by our estimate on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (32.44%)
2. California (42.37%, up from 40.11%)
3. Colorado (42.76%)
4. Michigan (43.18%, up from 43.07%)
5. Nevada (50.13%)
6. Georgia (53.79%, up from 53.74%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
We're very pleased with how these two lists have shaped up; the movement from week to week is becoming very slight, so we're pretty confident this gives a relatively accurate idea of how badly off these various States and the banks within them are. Of course, our analysis only reflects those States which have had over two bank failures, so that leaves a good portion of the Union (and its... extensions) not reflected in our report.
Nevertheless, these five States - Georgia, Utah, Arizona, Nevada, and Colorado, in no particular order - are likely to be among the worst-off, as they are represented in both the preceeding lists. We really can't say which of those is the king of the dung heap, as it were, because we still haven't figured out how to compare apples and oranges.
Saturday, October 31, 2009
FDIC Bank Failure Report
This week, the Federal Deposit Insurance Corporation closed nine banks, a record number in the 2007 Depression: Bank USA, N.A., of Phoenix, AZ; California National Bank, of Los Angeles, CA; San Diego National Bank, of San Diego, CA; Pacific National Bank, of San Francisco, CA; Park National Bank, of Chicago, IL; Community Bank of Lemont, of Lemont, IL; North Houston Bank, of Houston, TX; Madisonville State Bank, of Madisonville, TX; and Citizens National Bank, of Teague, TX. The total assets of the closed banks were $19,400,000,000, and total deposits were approximately $15,400,000,000. The cost to the FDIC is estimated at $2,500,000,000.
According to our methodology, the recoverable value of the bank was $12,900,000,000, or only 66.49% of the declared asset value. This makes this week's closures distinctly above the cumulative recoverability since December 2007, which stands at 57.81% (up noticeably from last week's 57.46%).
Cumulative cost-to-FDIC was brought to $48,957,800,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $500,362,480,000, and total FDIC-insured deposits to $338,201,020,000. The recoverable value of all failed banks was only $289,243,220,000 (57.81% of the declared value).
***
A couple milestones to remember on this day, dear Reader: nine banks closed in one day, beating out the eight closed on February 7th of this year; and over a half-trillion dollars in bank assets passed through the FDIC's mangy paws! Let us pause in a moment of silence, to commemorate that $0.5 trillion, because this is probably the last time that quantity of dollars will seem like much money. The horror of that $0.5 trillion is that it was only worth about $0.2 trillion... ouch. Again, we think that's only going to get worse. If the U.S. banking system is anywhere near as insolvent as our methodology suggests it is, there are many, many more banks out there with thoroughly rotten balance sheets.
Speaking of rotten balance sheets, the acquiring bank for all nine failures was US Bank, of Minneapolis, MN. It looks like US Bank is on track to become what we'd like to call hyper-regional, because regional does not quite seem to cover a Midwest bank with 115 branches in California, and five in Texas. It seems to us that the animal spirits have possessed this bank, too, and they're 'positioning themselves for the recovery' with a vengeance. We're not sure what's in the water in US Bank's Minneapolis HQ, but it must be some impressively potent stuff. They see the same falling household incomes as we do, but our first though would not have been "that's great news, let's blow $13 billion!" We have to conclude that US Bank is putting their head on the block, because when - not if - the next market nosedive hits, they will probably find themselves extremely overreached. Then again, if they are reaching for 'too-big-to-fail' status, they are on exactly the right course.
Unfortunately, the FDIC did not provide a break-down of its cost-to-DIF for each individual bank (separate assets and deposits were provided, though). So, we will not be able to include this week's closures in our recoverability by State analysis, because the lack of detailed closure data would skew our analysis quite severely. As an aside, a cohort of ours contacted the FDIC, requesting the information, but the FDIC spokesperson said they didn't have the info on hand, and to file a Freedom of Information Act request for the same... Feel the love!
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in the State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #6)
5. Utah (down from #4)
6. Kansas (down from #5)
7. Oregon
8. Missouri
9. Arizona (new to list)
10. Colorado (down from #9)
The recoverable value represents how much of declared assets are actually worth on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis. [Note: this week's closures are not reflected in this data, so it remains unchanged from last week].
1. Florida (32.44%)
2. California (40.11%)
3. Colorado (42.76%)
4. Michigan (43.07%)
5. Nevada (50.13%)
6. Georgia (53.74%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
So much for Florida; we have to rescind all our back-patting from last report, because Arizona has stolen the Sunshine State's lustre. We fully expect to see more of Florida, sometime in the future. Just don't ask us when, because we really don't know. This is, of course, influenced by the rather jittery movements of the FDIC's closures; they do not seem to be focusing on any one State in particular to try and clean up that State's banking system. If a concerted effort to get the U.S. banking system sound does develop, perhaps this problem will be alleviated. Additional data clarity could also come from the FDIC being forced to close banks more often than just weekly.
Arizona will probably end up being a pretty ugly case, in and of itself. In the long term we fully expect that State to be far worse off that Florida, but only by a question of degrees: Florida will be in ruins, but Arizona will be abandoned and in ruins. For the meanwhile, though, Florida's financial woes will probably come to the fore more so than any other State, because of the extremely-overvalued nature of the Florida banking system's assets.
According to our methodology, the recoverable value of the bank was $12,900,000,000, or only 66.49% of the declared asset value. This makes this week's closures distinctly above the cumulative recoverability since December 2007, which stands at 57.81% (up noticeably from last week's 57.46%).
Cumulative cost-to-FDIC was brought to $48,957,800,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $500,362,480,000, and total FDIC-insured deposits to $338,201,020,000. The recoverable value of all failed banks was only $289,243,220,000 (57.81% of the declared value).
***
A couple milestones to remember on this day, dear Reader: nine banks closed in one day, beating out the eight closed on February 7th of this year; and over a half-trillion dollars in bank assets passed through the FDIC's mangy paws! Let us pause in a moment of silence, to commemorate that $0.5 trillion, because this is probably the last time that quantity of dollars will seem like much money. The horror of that $0.5 trillion is that it was only worth about $0.2 trillion... ouch. Again, we think that's only going to get worse. If the U.S. banking system is anywhere near as insolvent as our methodology suggests it is, there are many, many more banks out there with thoroughly rotten balance sheets.
Speaking of rotten balance sheets, the acquiring bank for all nine failures was US Bank, of Minneapolis, MN. It looks like US Bank is on track to become what we'd like to call hyper-regional, because regional does not quite seem to cover a Midwest bank with 115 branches in California, and five in Texas. It seems to us that the animal spirits have possessed this bank, too, and they're 'positioning themselves for the recovery' with a vengeance. We're not sure what's in the water in US Bank's Minneapolis HQ, but it must be some impressively potent stuff. They see the same falling household incomes as we do, but our first though would not have been "that's great news, let's blow $13 billion!" We have to conclude that US Bank is putting their head on the block, because when - not if - the next market nosedive hits, they will probably find themselves extremely overreached. Then again, if they are reaching for 'too-big-to-fail' status, they are on exactly the right course.
Unfortunately, the FDIC did not provide a break-down of its cost-to-DIF for each individual bank (separate assets and deposits were provided, though). So, we will not be able to include this week's closures in our recoverability by State analysis, because the lack of detailed closure data would skew our analysis quite severely. As an aside, a cohort of ours contacted the FDIC, requesting the information, but the FDIC spokesperson said they didn't have the info on hand, and to file a Freedom of Information Act request for the same... Feel the love!
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in the State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #6)
5. Utah (down from #4)
6. Kansas (down from #5)
7. Oregon
8. Missouri
9. Arizona (new to list)
10. Colorado (down from #9)
The recoverable value represents how much of declared assets are actually worth on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis. [Note: this week's closures are not reflected in this data, so it remains unchanged from last week].
1. Florida (32.44%)
2. California (40.11%)
3. Colorado (42.76%)
4. Michigan (43.07%)
5. Nevada (50.13%)
6. Georgia (53.74%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
So much for Florida; we have to rescind all our back-patting from last report, because Arizona has stolen the Sunshine State's lustre. We fully expect to see more of Florida, sometime in the future. Just don't ask us when, because we really don't know. This is, of course, influenced by the rather jittery movements of the FDIC's closures; they do not seem to be focusing on any one State in particular to try and clean up that State's banking system. If a concerted effort to get the U.S. banking system sound does develop, perhaps this problem will be alleviated. Additional data clarity could also come from the FDIC being forced to close banks more often than just weekly.
Arizona will probably end up being a pretty ugly case, in and of itself. In the long term we fully expect that State to be far worse off that Florida, but only by a question of degrees: Florida will be in ruins, but Arizona will be abandoned and in ruins. For the meanwhile, though, Florida's financial woes will probably come to the fore more so than any other State, because of the extremely-overvalued nature of the Florida banking system's assets.
Thursday, October 29, 2009
FDIC Bank Failure Report - Impossibly Late Edition
Apologies to all, but it's been a busy week. We're wrapping up our summer efforts, and save a few last projects we will soon have more time to devote to this blog.
***
This week, the Federal Deposit Insurance Corporation closed seven banks: Partners Bank, of Naples, FL; American United Bank, of Lawrenceville, GA; Hillcrest Bank Florida, of Naples, FL; Flagship National Bank, of Bradenton, FL; Bank of Elmwood, of Racine, WI; Riverview Community Bank, of Otsego, MN; and First Dupage Bank, of Westmont, IL. The total assets of the closed banks were $1,163,900,000, and total deposits were approximately $1,032,100,000. The cost to the FDIC is estimated at $356,700,000.
According to our methodology, the recoverable value of the bank was $675,400,000, or only 58.03% of the declared asset value. This makes this week's closure slightly above the cumulative recoverability since December, which stands at 57.46% (essentially unchanged from last week's 57.45%).
Cumulative cost-to-FDIC was brought to $46,457,800,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $480,962,480,000, and total FDIC-insured deposits to $322,801,020,000. The recoverable value of all failed banks was only $276,343,220,000 (57.46% of the declared value).
***
First off, we welcome Wisconsin to the 2007 Depression; the Land of Cheese has enjoyed the scent of its first - of many - bank failures. Additionally, we pat ourselves on the back, because at long last Florida is receiving the attention we predicted it would (see the commentary at the end of our piece). We called it almost a month ago, so please pardon us while we feel terribly smart. At any rate, Florida is in for a very, very painful time, have no doubt; the whole State's banking system is a morass of ultimate financial doom. We don't know if this is the beginning of that pain, or just a blip, but we're quite confident that Florida is going to see vast numbers of banks falling dead in their tracks from toxic mortgages, et cetera.
We noticed a surprising trend with this week's closures: a large percentage (95.27%) of the assets of all closed banks were successfully sold off, either outright or under a loss-share agreement between the FDIC and the acquiring institution. We don't have much back data (we'll work on that), so this might be a fluke of the week... but we wonder if the Federal Government's calling the recession over is actually working. Call us crazy, but we're just not feeling the love on this one. If the 'great recession' were actually over, we would expect to see that in improving quality of bank's assets. They have definitely not improved.
However, is seems that acquiring institutions feel the economy will be improving in the future, so they're happy to snap up most of the assets of the failed banks, no matter how toxic. The frisky animal spirits have possessed them at last, so they put on their war paint, do a victory dance, and march off to position themselves for the 'great recovery.' Apparently these acquiring institutions have forgotten they are akin to wolves; wolves can only consume fresh meat, and it seems these predators haven't noticed their prey is rotten. We don't know when the nasty effects of bad assets will start to bother the predator banks, but when the effects start it will be exciting. If acquiring institutions start to be closed by the FDIC, expect the U.S. to take the mother of all nosedives.
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in the State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #6)
5. Utah (down from #4)
6. Kansas (down from #5)
7. Oregon
8. Missouri
9. Colorado
10. Florida (new to list)
The recoverable value represents how much of declared assets are actually worth on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (32.44%)
2. California (40.11%)
3. Colorado (42.76%)
4. Michigan (43.07%)
5. Nevada (50.13%)
6. Georgia (53.74%, down from 53.76%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
Well, shucks, more back-patting for us: Florida is now officially on both lists. We fully expect the State to ratchet up to the #1 spot on closures-to-population, and stay firmly in the lead on the recoverable value scale. The collapse of Florida's finances will likely be coupled with the final catastrophic implosion of the vast majority of well-off senior citizens' own finances. Why? We suspect that most of the elderly retirees in Florida have a big portion of their wealth in over-valued real estate, and when the State's real estate bubble pops and that value goes down, down, down, those seniors are not going to have much to fall back on. Social Security will not be enough to support them in the style to which they've become accustomed, and they will be forced out of their homes and into the homes of their children.
That's, of course, making the rash assumption that their children still have homes of their own. If the Baby Boomers have taken the hit at around the same time, the United States is going to see a large indigent population of elderly and Baby Boomers, whinging about how it isn't fair. No one in power will be listening, we suspect; the ear of the Federal Government is firmly owned by banks. Indeed, at that point the Government might not have any money at all to throw around - at least, no money that can actually buy anything.
The question rattling around in our mind is this: is Florida the first domino in a really big economic catastrophe? Or will it be another California, and simply be a bigger sag in the overarching, slow-motion collapse of the U.S. economy? We really don't know, but we could certainly see it either way. We'll be pondering that thought for a later blog post.
***
This week, the Federal Deposit Insurance Corporation closed seven banks: Partners Bank, of Naples, FL; American United Bank, of Lawrenceville, GA; Hillcrest Bank Florida, of Naples, FL; Flagship National Bank, of Bradenton, FL; Bank of Elmwood, of Racine, WI; Riverview Community Bank, of Otsego, MN; and First Dupage Bank, of Westmont, IL. The total assets of the closed banks were $1,163,900,000, and total deposits were approximately $1,032,100,000. The cost to the FDIC is estimated at $356,700,000.
According to our methodology, the recoverable value of the bank was $675,400,000, or only 58.03% of the declared asset value. This makes this week's closure slightly above the cumulative recoverability since December, which stands at 57.46% (essentially unchanged from last week's 57.45%).
Cumulative cost-to-FDIC was brought to $46,457,800,000. This closure brings the total declared assets of FDIC-failed banks (since December of 2007) to $480,962,480,000, and total FDIC-insured deposits to $322,801,020,000. The recoverable value of all failed banks was only $276,343,220,000 (57.46% of the declared value).
***
First off, we welcome Wisconsin to the 2007 Depression; the Land of Cheese has enjoyed the scent of its first - of many - bank failures. Additionally, we pat ourselves on the back, because at long last Florida is receiving the attention we predicted it would (see the commentary at the end of our piece). We called it almost a month ago, so please pardon us while we feel terribly smart. At any rate, Florida is in for a very, very painful time, have no doubt; the whole State's banking system is a morass of ultimate financial doom. We don't know if this is the beginning of that pain, or just a blip, but we're quite confident that Florida is going to see vast numbers of banks falling dead in their tracks from toxic mortgages, et cetera.
We noticed a surprising trend with this week's closures: a large percentage (95.27%) of the assets of all closed banks were successfully sold off, either outright or under a loss-share agreement between the FDIC and the acquiring institution. We don't have much back data (we'll work on that), so this might be a fluke of the week... but we wonder if the Federal Government's calling the recession over is actually working. Call us crazy, but we're just not feeling the love on this one. If the 'great recession' were actually over, we would expect to see that in improving quality of bank's assets. They have definitely not improved.
However, is seems that acquiring institutions feel the economy will be improving in the future, so they're happy to snap up most of the assets of the failed banks, no matter how toxic. The frisky animal spirits have possessed them at last, so they put on their war paint, do a victory dance, and march off to position themselves for the 'great recovery.' Apparently these acquiring institutions have forgotten they are akin to wolves; wolves can only consume fresh meat, and it seems these predators haven't noticed their prey is rotten. We don't know when the nasty effects of bad assets will start to bother the predator banks, but when the effects start it will be exciting. If acquiring institutions start to be closed by the FDIC, expect the U.S. to take the mother of all nosedives.
***
On the basis of the ratio of bank closures to population (i.e. simply the number of failures in the State, with no account of assets or deposits), the ten most afflicted States are listed here. Only those States which have two or more closures are considered.
1. Georgia
2. Nevada
3. Illinois
4. Minnesota (up from #6)
5. Utah (down from #4)
6. Kansas (down from #5)
7. Oregon
8. Missouri
9. Colorado
10. Florida (new to list)
The recoverable value represents how much of declared assets are actually worth on the open market. The following are the ten States with the lowest recoverable value; only those States which have had two or more closures are considered in this analysis.
1. Florida (32.44%)
2. California (40.11%)
3. Colorado (42.76%)
4. Michigan (43.07%)
5. Nevada (50.13%)
6. Georgia (53.74%, down from 53.76%)
7. Utah (55.39%)
8. Arizona (56.08%)
9. Washington (56.18%)
10. North Carolina (56.7%)
***
Well, shucks, more back-patting for us: Florida is now officially on both lists. We fully expect the State to ratchet up to the #1 spot on closures-to-population, and stay firmly in the lead on the recoverable value scale. The collapse of Florida's finances will likely be coupled with the final catastrophic implosion of the vast majority of well-off senior citizens' own finances. Why? We suspect that most of the elderly retirees in Florida have a big portion of their wealth in over-valued real estate, and when the State's real estate bubble pops and that value goes down, down, down, those seniors are not going to have much to fall back on. Social Security will not be enough to support them in the style to which they've become accustomed, and they will be forced out of their homes and into the homes of their children.
That's, of course, making the rash assumption that their children still have homes of their own. If the Baby Boomers have taken the hit at around the same time, the United States is going to see a large indigent population of elderly and Baby Boomers, whinging about how it isn't fair. No one in power will be listening, we suspect; the ear of the Federal Government is firmly owned by banks. Indeed, at that point the Government might not have any money at all to throw around - at least, no money that can actually buy anything.
The question rattling around in our mind is this: is Florida the first domino in a really big economic catastrophe? Or will it be another California, and simply be a bigger sag in the overarching, slow-motion collapse of the U.S. economy? We really don't know, but we could certainly see it either way. We'll be pondering that thought for a later blog post.
Wednesday, October 7, 2009
Economic Stress Report for October 2009
Once again we've gathered sufficient data to provide an update on the Economic Stress Report. According to our analysis method, the following are the top ten States on our list of economically stressed states. We present them here in order of highest to lowest severity:
1. South Dakota
2. Vermont
3. Ohio
4. Arizona
5. Kansas
6. Nevada (new to list)
7. New Hampshire (new to list)
8. Connecticut (new to list)
9. West Virginia (down from #8)
10. Indiana
The big, pleasant surprise for us in this report is that the top five states are unchanged from last report. New additions to the second decile are: Nevada (up from #11 of last report); New Hampshire and Connecticut (both not even on the 'watch list' of last report!). Falling out of the second decile are Montana (down to #11); Washington (down to #12); and New York (down to #13).
The consistency of the top states gives us hope our methodology is fairly sound as more data pours in. That several of these states are on our list should be no surprise to anyone - Ohio, Arizona, Nevada, and Indiana. Perhaps more remarkable is that the famous basket-case of California is missing. We don't think the absence of the Golden State in our stress measure is in any way a positive reflection on California's economy. Rather, we believe that worse conditions lie elsewhere under the radar of widespread public attention.
1. South Dakota
2. Vermont
3. Ohio
4. Arizona
5. Kansas
6. Nevada (new to list)
7. New Hampshire (new to list)
8. Connecticut (new to list)
9. West Virginia (down from #8)
10. Indiana
The big, pleasant surprise for us in this report is that the top five states are unchanged from last report. New additions to the second decile are: Nevada (up from #11 of last report); New Hampshire and Connecticut (both not even on the 'watch list' of last report!). Falling out of the second decile are Montana (down to #11); Washington (down to #12); and New York (down to #13).
The consistency of the top states gives us hope our methodology is fairly sound as more data pours in. That several of these states are on our list should be no surprise to anyone - Ohio, Arizona, Nevada, and Indiana. Perhaps more remarkable is that the famous basket-case of California is missing. We don't think the absence of the Golden State in our stress measure is in any way a positive reflection on California's economy. Rather, we believe that worse conditions lie elsewhere under the radar of widespread public attention.
Wednesday, September 23, 2009
Changes to the FDIC Bank Failure Report
In our last FDIC Bank Failure Report, we took a look at Corus Bank's assets and the consequent FDIC losses, and smelled a rat. Corus' $7 billion in assets had cost the FDIC $1.7 billion... but the FDIC sold off $3 billion of those assets to an unwitting sucker in the form of MB Financial Bank. So, the $1.7 billion cost-to-DIF was actually on the $4 billion in ex-Corus assets which the FDIC kept, giving Corus Bank a losses-to-assets ratio of 42.50%. Bad, quite bad, and made worse so in our eyes, as Corus' raw losses-to-assets originally came up at a paltry 24.29%.
But then, we started thinking. How could it be that Corus' $7 billion in assets didn't cover the $7 billion in FDIC-insured deposits? Why was it that the FDIC had to spend $1.7 billion on a bank which should have been able to be liquidated and be able to pay out?
The answer is obvious, of course: Corus' reported assets were overvalued. But just how overvalued were they? It's around this point when we realised we had been looking at the answer for months, now, without it having sunk into our thick skull: the assets were overvalued by the amount of money the FDIC admitted it had to spend on the failed bank!
So... forget everything about losses-to-assets, we've got something new to look at: recoverable value. Simply put, what percentage of declared value the bank's assets are really worth when they're put up on the FDIC's auction block.
As an example, we'll take Corus. The $7 billion in declared assets were supposed to cover the $7 billion in FDIC- insured deposits. They didn't, to the tune of $1.7 billion (i.e. cost-to-Deposit Insurance Fund). This means that the assets on Corus' books were reported overvalued by $1.7 billion. Doing the math, Corus' assets were only worth $5.3 billion or so.
And lo, the recoverable value appears: the declared value of Corus' assets was only 75.71% recoverable.
This is horrible, with a capital H, O, R, R, I, B, L, and E! To see a major bank have assets whose market value is only 75.71% of their declared value is unbelievably bad. Why Corus wasn't shut down months ago, we have a few dark suspicions – a topic for a later post. Suffice it to say, Corus Bank was insolvent, out of cash, massively overvalued, and otherwise scum-of-the-earth as far as a bank goes.
Did we forget to mention it gets much, much worse? Let's hop onto a time machine, and look at some bank failures from the past. First stop, Washington Mutual, the FDIC's whack-job for our friends over at JPMorgan Chase. The two 'divisions' of WaMu had combined assets of $307 billion, and combined deposits of $188 billion. The FDIC, at the time of WaMu's assassination – or closure, if you prefer – made a great fanfare about how the failure was not going to cost the DIF a single cent.
That all might be true, but we read in the FDIC's press release that JPMorgan Chase gave the FDIC $1.9 billion. For what, we wonder? Perhaps to cover costs to the DIF, so that the FDIC could have a media coup? Hmmm... we suspect that it is indeed just that: the true cost of the failure, conveniently hidden by JPMorgan Chase's willing assistance; so, we count that $1.9 billion as the actual cost-to-DIF.
Using our new methodology – subtract cost-to-DIF from total FDIC-insured deposits – we find that WaMu's assets were only worth about $186.1 billion; recoverable value was only 60.62%. Yes, dear Reader, that is worse than Corus, and much bigger too! However, a happy moment can be found in WaMu: the FDIC didn't just gift several hundred billion dollars to JPMorgan Chase, it actually gave it a bag of bad assets and rotting derivatives. You know, the usual fare at JPMorgan.
Anyway, one more failure to visit, this one even deeper in the past: IndyMac F.S.B. It had assets at a declared value of $32.01 billion, and total deposits of $18.06 billion. From the day that the FDIC closed the bank, until the FDIC sold off the successor zombie-bank, the total cost-to-DIF was a lovely $10.7 billion – making IndyMac the most costly bank failure in raw dollars this far in the Depression, as an aside.
But now, the scary part... Using our new methodology – subtract cost-to-DIF from total FDIC-insured deposits – we find that IndyMac's assets were only worth about $7.36 billion.
Pause a moment, dear Reader, and ponder that number. That's a bad number. Compare to the dlecared asset value of $32.01 billion. IndyMac's recoverable value, after all was said and done, was a chillingly slender 22.99% of declared asset value. This makes IndyMac the biggest loser so far in the Depression; a bottomless pit into which the FDIC shoveled money.
So ends today's time-travelling. We hope it was enlightening for you, as it was quite eye-opening for us. A final bit of bad news: using our new methodology on the total declared assets of all banks closed since December 2007, the recoverable value of all 119 of these banks was 57.46%. Although the comparison is not exact, one can suggest that it is possible that the entire United States' banking system will only be about 57% recoverable, or so. We must be honest here: we fully expect that this will get worse in the future. Much worse.
Monday, September 14, 2009
FDIC Bank Failure Report
Last week, the Federal Deposit Insurance Corporation closed three banks: Corus Bank (Chicago, Illinois); Brickwell Community Bank (Woodbury, Minnesota); and Venture Bank (Lacy, Washington). Total assets of the closed banks were $8,042,000,000. The cost to the FDIC is estimated at $2,020,000,000. The percentage of FDIC loss out of total assets is 25.12%.
This closure brings the total assets of FDIC-failed banks (since December of 2007) to $471,296,780,000, with cost-to-FDIC brought to $38,783,800,000 - this includes the assets of Washington Mutual, whose closing offered no cost to the FDIC. The percentage of FDIC losses to total assets presently stands at 8.23%, up from 7.87% as of last report.
Upon elimination of WaMu's assets from the analysis, total assets are $164,296,780,000, and total cost is $38,783,800,000. The percentage of FDIC losses to total assets now stands at 23.61% up from 23.53% as of last report.
The situation with Corus Bank requires additional examination. The acquiring institution, MB Financial Bank, agreed to take ownership of $3 billion (out of $7 billion) of ex-Corus assets, leaving $4 billion in the capable hands of the FDIC. The raw losses-to-assets ration is 24.29%; however, taking MB Financial's actions into account, and the extimated cost-to-DIF of $1.7 billion, the actual losses-to-assets stands at an whopping 42.50%. Because of the severity of this different, we're going to be looking closer at past closures, as it is entirely possible that closures have been altogether worse than we previously thought.
On the basis of the ratio of bank closures to population, and the ten most afflicted states are:
1. Nevada
2. Georgia
3. Illinois
4. Utah
5. Kansas
6. Minnesota
7. Oregon
8. Missouri
9. Washington
10. Florida
On the basis of the total losses-to-assets ratio in each state, the worst are as follows:
1. Pennsylvania - 50.75%
2. Utah - 40.32%
3. Idaho - 39.11%
4. Michigan - 39.03%
5. Wyoming - 38.57%
6. Florida - 37.62%
7. Iowa - 36.68%
8. West Virginia - 36.52%
9. Nevada - 35.56%
10. Arizona - 34.45%
This closure brings the total assets of FDIC-failed banks (since December of 2007) to $471,296,780,000, with cost-to-FDIC brought to $38,783,800,000 - this includes the assets of Washington Mutual, whose closing offered no cost to the FDIC. The percentage of FDIC losses to total assets presently stands at 8.23%, up from 7.87% as of last report.
Upon elimination of WaMu's assets from the analysis, total assets are $164,296,780,000, and total cost is $38,783,800,000. The percentage of FDIC losses to total assets now stands at 23.61% up from 23.53% as of last report.
The situation with Corus Bank requires additional examination. The acquiring institution, MB Financial Bank, agreed to take ownership of $3 billion (out of $7 billion) of ex-Corus assets, leaving $4 billion in the capable hands of the FDIC. The raw losses-to-assets ration is 24.29%; however, taking MB Financial's actions into account, and the extimated cost-to-DIF of $1.7 billion, the actual losses-to-assets stands at an whopping 42.50%. Because of the severity of this different, we're going to be looking closer at past closures, as it is entirely possible that closures have been altogether worse than we previously thought.
On the basis of the ratio of bank closures to population, and the ten most afflicted states are:
1. Nevada
2. Georgia
3. Illinois
4. Utah
5. Kansas
6. Minnesota
7. Oregon
8. Missouri
9. Washington
10. Florida
On the basis of the total losses-to-assets ratio in each state, the worst are as follows:
1. Pennsylvania - 50.75%
2. Utah - 40.32%
3. Idaho - 39.11%
4. Michigan - 39.03%
5. Wyoming - 38.57%
6. Florida - 37.62%
7. Iowa - 36.68%
8. West Virginia - 36.52%
9. Nevada - 35.56%
10. Arizona - 34.45%
Tuesday, September 8, 2009
FDIC Bank Failure Report - Unbelievably Extra-Late Edition
Last week, the Federal Deposit Insurance Corporation closed five banks: First Bank of Kansas City (Kansas City, Missouri); InBank (Oak Forest, Illinois); Vantus Bank (Sioux City, Iowa); Platinum Community Bank (Rolling Meadows, Illinois); and First State Bank (Flagstaff, Arizona). Total assets of the closed banks were $1,136,600,000. The cost to the FDIC is estimated at $401,300,000. The percentage of FDIC loss out of total assets is 35.31%.
This closure brings the total assets of FDIC-failed banks (since December of 2007) to $463,254,780,000, with cost-to-FDIC brought to $36,763,800,000 - this includes the assets of Washington Mutual, whose closing offered no cost to the FDIC. The percentage of FDIC losses to total assets presently stands at 7.94%, up from 7.87% as of last report.
Upon elimination of WaMu's assets from the analysis, total assets are $156,254,780,000, and total cost is $36,763,800,000. The percentage of FDIC losses to total assets now stands at 23.53% up from 23.44% as of last report.
On the basis of the ratio of bank closures to population, and the ten most afflicted states are:
1. Nevada
2. Georgia
3. Illinois
4. Utah
5. Kansas
6. Oregon
7. Minnesota
8. Missouri
9. Florida
10. Colorado
On the basis of the total losses-to-assets ratio in each state, the worst are as follows:
1. Pennsylvania - 50.75%
2. Utah - 40.32%
3. Idaho - 39.11%
4. Michigan - 39.03%
5. Wyoming - 38.57%
6. Florida - 37.62%
7. Iowa - 36.68%
8. West Virginia - 36.52%
9. Nevada - 35.56%
10. Arizona - 34.45%
This closure brings the total assets of FDIC-failed banks (since December of 2007) to $463,254,780,000, with cost-to-FDIC brought to $36,763,800,000 - this includes the assets of Washington Mutual, whose closing offered no cost to the FDIC. The percentage of FDIC losses to total assets presently stands at 7.94%, up from 7.87% as of last report.
Upon elimination of WaMu's assets from the analysis, total assets are $156,254,780,000, and total cost is $36,763,800,000. The percentage of FDIC losses to total assets now stands at 23.53% up from 23.44% as of last report.
On the basis of the ratio of bank closures to population, and the ten most afflicted states are:
1. Nevada
2. Georgia
3. Illinois
4. Utah
5. Kansas
6. Oregon
7. Minnesota
8. Missouri
9. Florida
10. Colorado
On the basis of the total losses-to-assets ratio in each state, the worst are as follows:
1. Pennsylvania - 50.75%
2. Utah - 40.32%
3. Idaho - 39.11%
4. Michigan - 39.03%
5. Wyoming - 38.57%
6. Florida - 37.62%
7. Iowa - 36.68%
8. West Virginia - 36.52%
9. Nevada - 35.56%
10. Arizona - 34.45%
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