Dedicated to Deposits: Deals, Data, and Discussion

FDIC's First Quarter 2010 Report - Number of Problem Banks Increased to 775

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The FDIC released its first quarter 2010 report on the banking industry. Here are some of the noteworthy excerpts from the press release:

  • Commercial banks and savings institutions insured by the [FDIC] reported an aggregate profit of $18.0 billion in the first quarter of 2010, a $12.5 billion improvement from the $5.6 billion the industry earned in the first quarter of 2009, but still well below historical norms for quarterly profits.
  • The number of institutions on the FDIC's "Problem List" rose to 775, up from 702 at the end of 2009
  • Total assets of "problem" institutions increased during the quarter from $403 billion to $431 billion
  • The DIF balance – the net worth of the fund – increased slightly to negative $20.7 billion, from negative $20.9 billion (unaudited) on December 31, 2009
  • Forty-one institutions failed during the first quarter. Chairman Bair noted that the vast majority of "problem" institutions do not fail.
  • Total insured deposits increased by 1.3 percent ($70.0 billion) during the first quarter.

The FDIC doesn't point out the problem banks. CalculatedRisk Blog has an unofficial list of 725 problem banks based on public enforcement actions.

This CNN article mentioned some interesting stats from today's report. The article noted that much of the $18 billion in profits was attributed to big banks like Citigroup and Bank of America. And here's an interesting note regarding the number banks:

Another notable aspect of the latest quarterly report was a decline in the number of institutions insured by the FDIC to below 8,000. That's the first time that's happened in the agency's 76-year history. Two decades ago, the FDIC insured more than 16,000 institutions nationwide.

Credit Union Report

The NCUA also issued its insurance fund report (pdf) that is being reviewed in today's NCUA board meeting. Some noteworthy statistics include:

  • Number of problem credit unions (credit unions with a CAMEL ratings of 4 or 5) increased in April by 8 to 357
  • Total shares (deposits) held by problem credit unions increased to $43.2 billion from $41.6 billion at the end of 2009
  • 14 credit unions with $1 billion or more in assets are on the problem credit union list

So far this year there have been 72 bank failures and 8 credit union liquidations.

In addition to the quarterly report, the FDIC updated its database with the banks' financial data for the end of the first quarter 2010. Ratings services like BauerFinancial and Bankrate.com use this data for their star ratings. Recent ratings have been based on 12/31/09 data. Their new ratings based on 3/31/10 data should be out soon. BauerFinancial has typically been the first to include the new data. Bankrate.com has been taking about two months to update its database.



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Comments
Comment #1 by jeanne (anonymous) posted on
jeanne
Thanks, Ken! We always appreciate your reports, but are often too busy to say so!

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