FDIC's Fourth Quarter 2009 Report - Number of Problem Banks Increased to 702
The FDIC released its fourth quarter 2009 report on the banking industry. Here are some of the noteworthy excerpts from the press release:
- For the full-year, banks reported net income totaling $12.5 billion – up from $4.5 billion in 2008 (but way below $105.5 billion in 2007)
- At the end of December, there were 702 insured institutions on the "Problem List," up from 552 on September 30.
- Total assets of "problem" institutions increased during the quarter from $345.9 billion to $402.8 billion
- 45 institutions failed during the fourth quarter (50 had failed in Q3), bringing the total number of failures for the 2009 to 140, the highest annual total since 1992.
- The FDIC's liquid resources - cash and marketable securities - increased to $66 billion at year-end from $23 billion at the end of September (due to the 3-year prepayment from the banks)
- The Deposit Insurance Fund (DIF) balance – the net worth of the fund – decreased by $12.7 billion during the fourth quarter.
- Total insured deposits increased by 13.5 percent ($641.3 billion) during 2009, which reflects the temporary increase in the standard maximum FDIC deposit insurance amount from $100,000 to $250,000.
The FDIC doesn't point out the problem banks. CalculatedRisk Blog has an unofficial list of 617 problem banks based on public enforcement actions. There's also a list of the banks with the highest levels of troubled loans at MSNBC.
So far this year there have been 20 bank failures. Four banks failed last Friday. It's interesting to note that two of these four banks weren't on CR's unofficial problem bank list, and one had a 5-star BauerFinancial rating. News reports indicate fraud was the reason for the sudden closure of that 5-star bank.
In addition to the quarterly report, the FDIC updated its database with the banks' financial data for the end of the fourth quarter. Ratings services like BauerFinancial and Bankrate.com use this data for their star ratings. Recent ratings have been based on 9/30/09 data. Their new ratings based on 12/31/09 data should be out soon. BauerFinancial has typically been the first to include the new data. Bankrate.com has been taking over a month to update its database.