Business & Investment

Banks with problems declined and residential REO declined in the third quarter

NS Calculated risk of 11/30/2021 12:41: 00 PM

FDIC Quarterly bank profile Third quarter of 2021 this morning:

Quarterly net income increased $ 18.4 billion (35.9%) from the same period a year ago to $ 69.5 billion.
.. ..
Total assets increased $ 462.6 billion (2%) from the second quarter of 2021 to $ 23.3 trillion. Securities increased by $ 225 billion (3.9%) and cash and balances from depository institutions increased by $ 126.8 billion (3.6%). Growth in mortgage-backed securities ($ 101.9 billion, or 3% increase) and US Treasuries ($ 99.3 billion, or 8.5% increase) continued to drive quarterly growth in total securities. Loans and securities with maturities over five years now account for almost one-third (31.3%) of total assets, up from 28% in the fourth quarter of 2019.

Loans overdue for 90 days or more or accrued (ie, fixed loans) continued to decline from the first quarter of 2021 ($ 13.2 billion, or 10.8 percent decline). Fixed interest rates on total loans fell 12 basis points from the previous quarter. To 1.01 percent. Net depreciation has also continued to decline since a year ago ($ 8.3 billion, or 53.2 percent). The total net credit loss rate fell 30 basis points to 0.27%, the lowest level ever.
Emphasis added

Click the graph to see the enlarged image.

The FDIC reported that the number of problematic banks had dropped to 46.

The number of FDIC insureds decreased from 4,951 in the second quarter of 2021 to 4,914. In the third quarter of 2021, three new banks were opened, 39 institutions merged with other FDIC insurance institutions, one bank closed, and no bank went bankrupt. The number of banks on the FDIC’s “Problem Bank List” decreased by 10 from the second quarter to 46. This is the lowest level since QBP data collection began in 1984... The total assets of the bank in question increased by $ 4.8 billion (10.5%) from the second quarter to $ 50.6 billion.

This FDIC graph shows the number of problematic banks and assets at 51 institutions.

Note: The number of assets of the problematic bank increased significantly in 2018 when Deutsche Bank Trust Company Americas was added to the list (given the assets of the problematic bank, it must remain on the list). ).

FDIC Insured REOThe dollar value of residential real estate (REOs, foreclosures) owned by one to four households decreased from $ 1.37 billion in the third quarter of 2020 to $ 790 million in the third quarter of 2021. This is the lowest level of REO for many years. (Probably due to the moratorium of foreclosures, foreclosure programs, and rising house prices).

This graph shows the nominal dollar value of the FDIC insured’s residential REO. Note: The FDIC reports the value in dollars, not the total number of REOs.

Banks with problems declined and residential REO declined in the third quarter

http://www.calculatedriskblog.com/2021/11/fdic-problem-banks-declined-residential.html Banks with problems declined and residential REO declined in the third quarter

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