The Federal Deposit Insurance Corporation, the federal agency in charge of safeguarding the nation’s bank deposits, maintains a confidential Problem Bank List. This list contains the names of institutions that have weak capital positions caused by large loan losses or operational deficiencies that usually lead to failure. The FDIC does not publicize the list for fear of causing depositor withdrawals and bad publicity which would only serve to hasten the bank’s closing.
As of the latest report released by the FDIC there were 775 problem banks at March 31, 2010 up from 702 at the end of 2009. Total assets held by the troubled institutions is $431.2 billion, up from $402.8 billion at the end of 2009.
Although the FDIC does not publicize their Problem Bank List, their is another way to determine if a bank is potentially unsafe and subject to closing by regulators. The FDIC routinely releases a list of banks against which cease and desist and prompt corrective orders are issued.
A cease and desist order is issued when the FDIC has “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations.” A prompt corrective action directive by the FDIC is a “formal action that requires an institution to take one or more specified actions to return to required minimum capital standards”.
Although, the FDIC does not publicly disclose the Problem Bank List, it is almost a certainty that most of the following banks that were issued cease and desist or prompt corrective action are on it. Banking depositors with balances in excess of the FDIC deposit insurance limit should consider this list as “fair warning” from the FDIC and take their own “prompt corrective action” to avoid potential losses. Given the extreme problems cited by the FDIC with the banks listed, expect many of these institutions to wind up on the Failed Bank List.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Cease-and-Desist)
Butte Community Bank, Chico, CA; FDIC-10-097b; Issued 5/18/10 – PDF
America California Bank, San Francisco, CA; FDIC-10-287b; Issued 5/14/10 – PDF
Tri Valley Bank, San Ramon, CA; FDIC-10-293b; Issued 5/24/10 – PDF
Sonoma Valley Bank, Sonoma, CA; FDIC-10-249b; Issued 5/18/10 – PDF
First Vietnamese American Bank, Westminster, CA; FDIC-10-248b; Issued 5/25/10 – PDF
Pine River Valley Bank, Bayfield, CO; FDIC-10-284b; Issued 5/26/10 PDF
Bank of Choice, Greeley, CO; FDIC-10-142b; Issued 5/6/10 PDF
The First Bank of Greenwich, Cos Cob, CT; FDIC-10-323b; Issued 5/17/10 PDF
Bank of Florida – Southwest, Fort Lauderdale, FL; FDIC-09-587b; Issued 5/21/10 PDF
Bank of Florida – Southwest, Naples FL; FDIC-09-586b; Issued 5/21/10 PDF
Bank of Florida – Tampa Bay, Tampa, FL; FDIC-09-588b; Issued 5/20/10 PDF
Premier Bank, Tallahassee, FL; FDIC-10-074b; Issued 5/5/10 PDF
Columbus Community Bank, Columbus, GA; FDIC-10-135b; Issued 5/25/10 PDF
South Georgia Bank, Glennville, GA; FDIC-10-165b; Issued 5/5/10 PDF
Pineland State Bank, Metter, GA; FDIC-10-211b; Issued 5/27/10 PDF
Bank of Monticello, Monticello, GA; FDIC-10-258b; Issued 5/27/10 PDF
Citizens Bank of Effingham, Springfield, GA; FDIC-10-102b; Issued 5/4/10 PDF
Builders Bank, Chicago, IL; FDIC-09-617b; Issued 5/27/10 PDF
HomeStar Bank and Financial Services, Manteno, IL; FDIC-09-580b; Issued 5/24/10 PDF
Monarch Community Bank, Coldwater, MI; FDIC-10-190b; Issued 5/6/10 PDF
Traverse City State Bank, Traverse City, MI; FDIC-10-131b; Issued 5/26/10 PDF
Eagle Community Bank, Maple Grove, MN; FDIC-10-164b; Issued 5/27/10 PDF
Glasgow Savings Bank, Glasgow, MO; FDIC-10-282b; Issued 5/26/10 PDF
Superior Bank, Hazelwood, MO; FDIC-10-229b; Issued 5/26/10 PDF
Ericson State Bank, Ericson, NE; FDIC-10-230b; Issued 5/20/10 PDF
Pisgah Community Bank, Asheville, NC; FDIC-10-280b; Issued: 5/5/10 PDF
Nova Bank, Berwyn, PA; FDIC-10-210b; Issued 5/7/10 PDF
First CornerStone Bank, King of Prussia, PA; FDIC-10-151b; Issued 5/12/10 PDF
Congaree State Bank, West Columbia, SC; FDIC-10-047b; Issued 5/14/10 PDF
The Equitable Bank, SSB, Wauwatosa, WI; FDIC-10-099b; Issued 5/14/10 PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. §1831o
(Prompt Corrective Actions)
Legacy Bank, Scottsdale, AZ; FDIC-10-354PCAS; Issued 5/24/10 PDF
Butte Community Bank, Chico, CA; FDIC-10-334PCAS; Issued 5/3/10 PDF
Shoreline Bank, Shoreline, CA; FDIC-10-387PCAS; Issued 5/27/10 PDF
Ravenswood Bank, Chicago, IL; FDIC-10-286PCAS; Issued 5/6/10 PDF
SouthwestUSA Bank, Las Vegas, NV; FDIC-10-343PCAS; Issued 5/7/10 PDF
Blue Ridge Savings Bank, Inc., Asheville, NC; FDIC-10-333PCAS; Issued 5/28/10 PDF
LibertyBank, Eugene, OR; FDIC-10-361PCAS; Issued 5/14/10 PDF
Badger State Bank, Cassville, WI; FDIC-10-316PCAS; Issued 5/5/10 PDF
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