Despite a number of additional bank failures over the last 3 months and a slight improvement overall in the health of the banking sector, a large number of banks continue to struggle. In fact, the number of problem banks increased to 860 in the current quarter. This is the largest level of problem banks seen since 1993.
With all this in mind, it is time for a new Top 40 listing. The Bank Blog has refined a few of it's measures which should improve model predictability. Expected failure rates are roughly 20% higher on average for banks on the list. Returning banks from the prior list are in bold and closed banks are in italics.
1. FIRST COMMERCIAL BANK OF FLORIDA of ORLANDO, FL
2. UNITED AMERICAS BANK, N.A. of Atlanta, GA
3. LEGACY BANK of MILWAUKEE, WI
4. ALL AMERICAN BANK of DES PLAINES, IL
5. FIRSTIER BANK of LOUISVILLE, CO
6. ENTERPRISE BANKING COMPANY of McDonough, GA
7. THE BANK OF MIAMI, N.A. of CORAL GABLES, FL
8. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
9. THE FIRST NATIONAL BANK OF OLATHE of OLATHE, KS
10. THE BANK OF ASHEVILLE of ASHEVILLE, NC
11. CENTRUST BANK, N.A. of NORTHBROOK, IL
12. BANK OF LAS VEGAS of LAS VEGAS, NV
13. NORTH GEORGIA BANK of WATKINSVILLE, GA
14. MONTGOMERY BANK & TRUST of Ailey, GA
15. THE BANK OF COMMERCE of WOOD DALE, IL
16. THE FIRST NATIONAL BANK OF FLORIDA of MILTON, FL
17. MCINTOSH STATE BANK of Jackson, GA
18. SUNRISE BANK OF ARIZONA of PHOENIX, AZ
19. AMERICAN TRUST BANK of Roswell, GA
20. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
21. THE FIRST STATE BANK of Stockbridge, GA
22. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
23. CHESTATEE STATE BANK of Dawsonville, GA
24. WESTERN SPRINGS NATIONAL BANK AND TRUST of Western Springs, IL
25. FIRST COMMUNITY BANK of Taos, NM
26. HABERSHAM BANK of Clarkesville, GA
27. COMMUNITYONE BANK, N.A. of Asheboro, NC
28. PISGAH COMMUNITY BANK of Asheville, NC
29. THE ROYAL PALM BANK OF FLORIDA of Naples, FL
30. FIRST NATIONAL BANK OF CENTRAL FLORIDA of Winter Park, FL
31. FIRST SOUND BANK of Seattle, WA
32. FIRST CHOICE COMMUNITY BANK of Dallas, GA
33. OPTIMUMBANK of Plantation, FL
34. BUILDERS BANK of Chicago, IL
35. FIRST COMMERCIAL BANK OF TAMPA BAY of Tampa, FL
36. OGLETHORPE BANK of Brunswick, GA
37. CITIZENS BANK OF EFFINGHAM of Springfield, GA
38. THE BRAND BANKING COMPANY of Lawrenceville, GA
39. 1ST COMMERCE BANK of North Las Vegas, NV
40. CANYON NATIONAL BANK of Palm Springs, CA
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Thursday, November 25, 2010
Recap - How did the last quarter predictions fare?
A total of 19 banks in the Top 40 were closed in the last two months, or 47.5% of the entire sample. This comes as little surprise to The Bank Blog given the predicted likelihood of failure for each. What is more interesting is why have the other banks not been closed? As we see from the earlier post about Wilmington Trust Bank, which was classified as a bank with "Issues" based on it's 2-10% chance of failure, there are other forms of resolution for banks with difficulties. So what, if anything, has happened with the survivors?
1. SUNRISE BANK OF ATLANTA of Atlanta, GA
2. PISGAH COMMUNITY BANK of Asheville, NC
3. SUNRISE BANK OF ARIZONA of Phoenix, AZ
9. MICHIGAN COMMERCE BANK of Ann Arbor, MI
15. BANK OF LAS VEGAS of Las Vegas, NV
All owned by Capital Bancorp Limited. Capital Bancorp has consolidated, divested or otherwise re-capitalized a significant number of it's banks in various states. In general, it appears those banks that were healthy enough not to appear on this list were the most desirable acquisition targets. Nonetheless, their activities have held off closure of these other charters. It will be interesting to see how the rank on the next listing.
7. SOUTHERN COMMERCE BANK, NA of Tampa, FL
12. SUNBANK, NATIONAL ASSOCIATION of Phoenix, AZ
39. BANK MIDWEST, NATIONAL ASSOCIATION of Kansas City, MO
These 3 banks were all held by the same holding company Dickinson Financial Corporation. The majority of the branches of Dickinson were sold to NBH Holdings Corp.
8. FIRST SOUND BANK of Seattle, WA - $3.2 million raise in a private placement.
13. ALL AMERICAN BANK of Des Plaines, IL
17. TREATY OAK BANK of Austin, TX - Getting acquired by Carlile Bancshares
19. CENTRAL PACIFIC BANK of Honolulu, HI - Announced plans to raise $325 million.
22. PLANTERSFIRST of Cordele, GA
24. FIRST COMMUNITY BANK of Taos, NM - In discussions with investors
29. CHARTER OAK BANK of Napa, CA - Merged with Bay Commercial Bank
32. FIRST CHOICE COMMUNITY BANK of Dallas, GA
34. AMERICANA COMMUNITY BANK of Sleepy Eye, MN
36. HANMI BANK of Los Angeles, CA - Raised $120 million in new equity.
37. STATE CENTRAL BANK of Keokuk, IA
38. EVERGREEN STATE BANK of Stoughton, WI
40. THE BANK OF ASHEVILLE of Asheville, NC
1. SUNRISE BANK OF ATLANTA of Atlanta, GA
2. PISGAH COMMUNITY BANK of Asheville, NC
3. SUNRISE BANK OF ARIZONA of Phoenix, AZ
9. MICHIGAN COMMERCE BANK of Ann Arbor, MI
15. BANK OF LAS VEGAS of Las Vegas, NV
All owned by Capital Bancorp Limited. Capital Bancorp has consolidated, divested or otherwise re-capitalized a significant number of it's banks in various states. In general, it appears those banks that were healthy enough not to appear on this list were the most desirable acquisition targets. Nonetheless, their activities have held off closure of these other charters. It will be interesting to see how the rank on the next listing.
7. SOUTHERN COMMERCE BANK, NA of Tampa, FL
12. SUNBANK, NATIONAL ASSOCIATION of Phoenix, AZ
39. BANK MIDWEST, NATIONAL ASSOCIATION of Kansas City, MO
These 3 banks were all held by the same holding company Dickinson Financial Corporation. The majority of the branches of Dickinson were sold to NBH Holdings Corp.
8. FIRST SOUND BANK of Seattle, WA - $3.2 million raise in a private placement.
13. ALL AMERICAN BANK of Des Plaines, IL
17. TREATY OAK BANK of Austin, TX - Getting acquired by Carlile Bancshares
19. CENTRAL PACIFIC BANK of Honolulu, HI - Announced plans to raise $325 million.
22. PLANTERSFIRST of Cordele, GA
24. FIRST COMMUNITY BANK of Taos, NM - In discussions with investors
29. CHARTER OAK BANK of Napa, CA - Merged with Bay Commercial Bank
32. FIRST CHOICE COMMUNITY BANK of Dallas, GA
34. AMERICANA COMMUNITY BANK of Sleepy Eye, MN
36. HANMI BANK of Los Angeles, CA - Raised $120 million in new equity.
37. STATE CENTRAL BANK of Keokuk, IA
38. EVERGREEN STATE BANK of Stoughton, WI
40. THE BANK OF ASHEVILLE of Asheville, NC
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