On July 10, 2009 another bank was added on the long list of bank failures as reported by the FDIC. Here is Bank Of Wyoming’s Balance Sheet and Income Statement.
We took a look at the counties with the highest change in the combined rate of bankcard defaults and mortgage defaults from Q1 2009 to Q1 2008. We used data from the NY Federal Reserve (here) to identify the counties. The list of the top 25 counties with the highest changes are in the doc below.
The detail for all the counties nationally are on the NY Federal Reserve site (here).
An animation of the housing bubble with a look at household income versus median home values of metro areas.
From testimony before the Joint Economic Committee by Jon D. Greenlee, Associate Director, Division of Banking Supervision and Regulation (here):
Financial market dislocations and the continuing economic downturn are clearly challenging CRE markets. The pace of property sales has slowed dramatically since peaking in 2007, from quarterly sales of roughly $195 billion to about $20 billion in the first quarter of 2009. Demand for commercial property is sensitive to trends in the labor market, and, as job losses have accelerated, tenant demand for space has declined and vacancy rates have increased.
[snip]
The negative fundamentals in the commercial real estate property markets have broadly affected the credit performance of loans in banks’ portfolios and loans in commercial mortgage backed securities. At the end of the first quarter of 2009, there was approximately $3.5 trillion of outstanding debt associated with commercial real estate. Of this, $1.8 trillion was held on the books of banks, and an additional $900 billion represented collateral for CMBS. At the end of the first quarter, about seven percent of commercial real estate loans on banks’ books were considered delinquent.1 This was almost double from the level a year earlier. The loan performance problems were the most striking for construction and land development loans, especially for those that finance residential development. Notably, a high proportion of small and medium-sized institutions continue to have sizable exposure to commercial real estate, including land development and construction loans, built up earlier this decade, with some having concentrations equal to several multiples of their capital.
[snip]
Reserve Banks with geographic areas suffering more acute price declines in real estate have been particularly focused on evaluating exposures arising from CRE lending. We have found, through horizontal reviews and other examination activities, that many institutions would benefit from additional and better stress testing, improved management information systems, and stronger appraisal practices, and that some banks need to improve their understanding of how concentrations–both single-name and sectoral/geographical concentrations–can impact capital levels during shocks.
From The Big Picture (here):
One of the the largest mortgage insurers in the US, PMI is forecasting that home prices will be lower in 2011 than they are today, including 30 of the 50 largest metro areas. The decline is likely to spread to “all regions of the nation” from California, Florida, Nevada and Arizona, the states most affected by the housing slump.
This line really grabbed me: “The 15 areas with the highest probability of lower prices in 2011 each have a 99 percent chance.”
From Bloomberg (here):
Delinquencies on home-equity loans climbed to 3.52 percent of all accounts from 3.03 percent in the fourth quarter, and late payments on home-equity lines of credit climbed to a record 1.89 percent, the group reported today.
[snip]
Delinquent bank-card accounts jumped to a record 6.60 percent of outstanding card debt in the first quarter from 5.52 percent in the previous period, a signal unemployed borrowers are relying on cards as falling prices erode the equity in their homes. More borrowers are using cards to meet daily expenses after losing their jobs, the ABA said.
On July 3, 2009 the FDIC announced more Bank Failures. Here is the Balance Sheet and Income Statement for one of them: FIRST NATIONAL BANK OF DANVILLE
On July 3, 2009 the FDIC announced more Bank Failures. Here is the Balance Sheet and Income Statement for one of them: THE ELIZABETH STATE BANK
On July 3, 2009 the FDIC announced more Bank Failures. Here is the Balance Sheet and Income Statement for one of them: THE FIRST STATE BANK OF WINCHESTER, ILLINOIS
On July 3, 2009 the FDIC announced more Bank Failures. Here is the Balance Sheet and Income Statement for one of them: THE JOHN WARNER BANK
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