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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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FDIC's Fourth Quarter Report & Our Health Ratings

POSTED ON BY

The FDIC released its fourth quarter 2011 profile on the banking industry today. 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 $26.3 billion in the fourth quarter of 2011, a $4.9 billion improvement from the $21.4 billion in net income the industry reported in the fourth quarter of 2010.
  • Net operating revenue (net interest income plus total noninterest income) was $3.8 billion (2.3 percent) lower than a year earlier, due to a $4.4 billion (7.4 percent) decline in noninterest income.
  • The number of "problem" institutions declined from 844 to 813. This is the smallest number of "problem" banks since first quarter of 2010.
  • Total assets of "problem" institutions declined from $339 billion to $319 billion.
  • Eighteen insured institutions failed during the fourth quarter. For all of 2011, there were 92 insured institution failures, compared with 157 failures in 2010.
  • The Deposit Insurance Fund (DIF) balance continued to increase. The unaudited DIF balance — the net worth of the fund — rose to $9.2 billion at December 31 from $7.8 billion at September 30.
  • Loan balances posted a quarterly increase for the third quarter in a row.
  • Deposits in domestic offices increased by $249.7 billion (2.9 percent) during the quarter. More than three-quarters of this increase ($191.2 billion or 76.6 percent) consisted of balances in large noninterest-bearing transaction accounts that have temporary unlimited deposit insurance coverage. The 10 largest insured banks accounted for 73.6 percent ($140.7 billion) of the growth in these balances.
  • 7,359 banks and savings associations deposits insured by the FDIC (down from 7,437 in the last quarter)

The sizable deposit inflow is noteworthy for savers. Deposits increased 2.9% in the fourth quarter, and more than "three-quarters of this increase ($191.2 billion or 76.6 percent) consisted of balances in large noninterest-bearing transaction accounts that have temporary unlimited deposit insurance coverage." This is very similar to what we saw in the third quarter, and it's probably yet another thing that has put downward pressure on deposit rates. This temporary unlimited deposit insurance coverage will continue through 2012.

In terms of bank failures, fewer banks are failing. There were 92 bank failures in 2011 compared to 157 in 2010. Fewer banks also failed in Q4 (18) as compared to Q3 (26). For the first two months of this quarter, 11 banks have failed.

In addition to a decline in bank failures, the number of problem banks has gone down. The number of "problem" institutions is now 813, down from 844 at the end of Q3.

The FDIC doesn't name any of these problem banks. Calculated Risk Blog has an unofficial list of 960 problem banks based on public enforcement actions. When I reported on the FDIC's Q3 report 3 months ago, the unofficial problem bank number was 977.

Health Ratings

In addition to the quarterly report, the FDIC updated its database with the banks' public financial reports that were filed by December 31, 2011. This is the data that we use to determine the health ratings of banks.

We will be updating our bank health scores and Texas Ratios soon based on this new data. You can view a table of banks and credit unions with the worst Texas Ratios in our Bank Health Ratings page. From here you can also search for your bank and credit union to view its Texas Ratio, health score and other financial data.

BauerFinancial typically takes a couple of weeks to update its ratings. Bankrate.com has been taking over a month before it updates its ratings.



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Comments
17 Comments.
Comment #1 by Anonymous posted on
Anonymous
I and many like me, stopped posting on this blog because most of our posts were deleted.
My posts were never offensive to anyone personally and still got deleted.
It is just waste of time to even comment knowing your post is censored and if not to the liking of the moderator, deleted.

6
Comment #6 by Anonymous posted on
Anonymous
#1 - Not specific to you but, generally speaking, I think some of the posts are deleted because of the whiners, etc. who probably continually badger Ken te delete the posts in question. True, some of the posts are way over the top and, as such, should clearly be deleted, but, IMHO, some far less objectionable posts are deleted because of some tattletail type(s), who take exception to anyone who may dare to disagree with them, pester Ken to delete the opposing posts. Ken has a tough job trying to keep everyone happy and I do not envy hin in that regard. It would be nice for things to settle down a bit though so that Ken does not throw up his hands and say 'to h**l with it". We are very fortunate to have this site and I think most of us know it. So Ken thanks for all you do and please keep on keepin' on!

4
Comment #2 by Anonymous posted on
Anonymous
Poster #1

I totally agree with you. It makes feel that I am back in Russia in the 1960's.

2
Comment #3 by Anonymous posted on
Anonymous
That's weird.  If anonymous 1 stopped posting, I could have sworn I just read one of his posts.  How could that be?

Perhaps if poster 1 & 2 stuck to the subject matter your posts would not be deleted. 

5
Comment #4 by Apache (anonymous) posted on
Apache
Why can't posters use some type of fake "posting" name so we can tell which one is posting?  I think this Anonymous and a number can get to be confusing when we are trying to respond to a particular poster and another "Anonymous" pops in before we can reply.  Just a suggestion.  You certainly don't think I am an Indian but at least I have a posting name.

2
Comment #5 by George (anonymous) posted on
George
I agree with #1 poster, some of my posts lasted for few minutes only and then disappeared.

However, here is something to think about, a quote from a bank:

"

KASASA Cash Kasasa Rate Change

As part of their response to the economic downturn, the FDIC has placed interest rate restrictions on many banks preventing them from paying interest on deposit accounts that are significantly higher than the markets they serve. Until recently, this has not been an issue for First Bank, with the exception of our Kasasa Cash deposit account. We have been in continued discussion with the FDIC maintaining that Kasasa Cash is a different type of deposit account and it should only be compared to similar accounts, not to regular interest bearing checking accounts. Unfortunately, our substantial efforts and appeals have been unable to convince the FDIC and we must adjust the rate paid on Kasasa Cash to be in line with other interest bearing checking accounts in the Southwest Florida market. As of March 1st, the rate on Kasasa Cash will be .76%, which is the maximum allowable in our market where some checking accounts are paying as low as .01%. The rate on our Kasasa Saver will remain at .90% and will remain an attractive option for many of our customers.

Although we strongly disagree with the FDIC's directive, we ultimately have no choice but to comply. Please know we, and other community banks in the nation, continue to fight this decision.

We do hope that you will continue to find value in your relationship with First Bank. As always, we will continue to provide you with excellent service and innovative products, all with the personal touch only First Bank can offer!"

5
Comment #7 by Andrew (anonymous) posted on
Andrew
To Anonymous - #3,

You missed the point of #1, probably he was posting valuable info on this site, but now stopped doing it.
I see a valid point from #1, there should be no censorship on this Blog if Ken wants to make this site successful, otherwise most of us will leave this site forever.

5
Comment #8 by Mary (anonymous) posted on
Mary
Ken, #1 is correct, if you delete somebody’s posts, but you leave someone else’s post, it is not fear to take sides and keep the once that stroke your ego.

4
Comment #9 by Anonymous posted on
Anonymous
To Andrew post #7.

I doubt very much that he/she was posting valuable information, otherwise it would not have been deleted.

Ken's site has been a great success  for many years now. 

Thanks to Ken many of us have been laddering our CDs and locked in high interest returns for several years.   I am positive his site will continue to be successful with or with out a few winers.

Ken's Site..........Ken's Rules

7
Comment #10 by Anonymous posted on
Anonymous
to #9,

Wrong concussion, I have posted many valuable information and got deleted.

You said:
“Ken's Site..........Ken's Rules”

I say, wrong again, this is a public Blog. If Ken does not like posts from anyone, then he should close all of the posts and not the selective ones he likes or dislikes.

I suspect that you may be the one who squills to Ken to delete some posts not to your likings.

Have a nice day.

4
Comment #13 by Apache (anonymous) posted on
Apache
#10:  I am definitely against censorship and deletions unless someone is being foul-mouthed to someone else.  It's not like we have a gun to our head and "have" to read posts we don't like.  What I like about these type of groups is that they contain a multiplicity of people with different ideas and I enjoy reading them all.  I do not know why Ken decides to delete certain posters but I do hope he is at least "PMing" them and telling them what rule they have broken.

I certainly don't agree with you that this is not Ken's site and is basically a public blog.  Who do you think does all the work to put this information on here daily so that we can read it and post?  Who do you think came up with the "rules" for posting?  I would not risk ticking Ken off or we all may wake up one morning to find just a blank page where one of our most favorite forums "was".   Certain new banks and cus I am using now were found listed by Ken.  Don't bite the hand that feeds ALL of us many of our good CD banks and cus!

3
Comment #11 by Anonymous posted on
Anonymous
It would be interesting and helpful if #10 could give a few examples of his/her "many valuable information" posts that were deleted. If such a claim is made, then the very least that #10 should do is to back it up. Otherwiae, it probably didn't happen. 

2
Comment #12 by Anonymous posted on
Anonymous
It's interesting that none of the previous posted comments had anything to do with the original topic (about the health of banks).

The banking industry appears to have recovered somewhat from the 2008 near debacle.  With interest rates so low and so much money coming in, they can afford to operate on a pretty good profit margin.  And if rates stay depressed for a longer period of time, that further helps the industry as a whole.  With Money Market Mutual fund rates near 0% now, that even further helps to divert a lot of the money away from that sector.  This is the opposite of how it was in the early 1980s, when bank rates were fixed and could not compete with Money Market Mutual funds.

1
Comment #14 by Anonymous posted on
Anonymous
To Apache #13,

You said:
“I certainly don't agree with you that this is not Ken's site and is basically a public blog”

This site will not exist without the readers and posters.
Ken’s site will become obsolete in few days without the readers and posters contributing to this site.
Ask Ken and his partner, what is their purpose of this site, and why are there Ads and short cuts to different paid site and what is the purpose of the Blog, then you may change your mind about your own statement.
Ken admitted in many of his posts that he harvested lot of knowledge form the posters and certainly he followed up on many of the posts as new articles for rest of us to read and gather info and educate.

4
Comment #15 by Apache (anonymous) posted on
Apache
To #14:  You know that favorite movie you like watching or your favorite tv show?  Well if it didn't have a Producer to put it together and make it available for us to enjoy, there would be NO show!  Someone needs to take charge and make things available.  It doesn't matter if he uses info from other sites to share with us or has people like Ms. Nash write informative (to some of us) articles.  The fact is that one day the idea came to Ken to put DepositsOnline together and he was willing to put all the work involved with doing that so the great info we use is made available to any one who wants to read it and participate.  I think it is especially great that he shares info from other sites with us.  Makes my research a lot easier! 

All discussion groups are nothing without the participants so the people in the group are very important to making this successful.  But WE are not straddled with the responsibility or the work of making this particular internet forum/blog successful.  Ken is.  So, imo,  Ken is the Producer of this site and he can shut it down if he wants.  I think a bit of appreciation for HIS work is in order.   

3
Comment #16 by ohreally posted on
ohreally
Apache I think you are wasting your time arguing with a troll - because what else do you call posters whose only contribution seems to be to stir up trouble anonymously. 

5
Comment #17 by Apache (anonymous) posted on
Apache
ohreally:  I apologize for wasting time with the "troll".  I do have a problem recognizing them most times.  These "numbers" all look alike to me. :)  Thanks for pulling me in.

1