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By Bill Dedman
Investigative reporter
msnbc.com
updated 12:46 p.m. ET, Thurs., June 11, 2009
http://www.msnbc.msn.com/id/31193659...s-us_business/
Investigative reporter
msnbc.com
updated 12:46 p.m. ET, Thurs., June 11, 2009
Msnbc.com is publishing information on the nation's 400 largest banks as well as all banks with high ratios of troubled loans to assets. Information on the financial health of more than 8,000 banks nationwide is available at the updated BankTracker site published by the American University group.
The analysis relies on information reported through March 31 to the Federal Deposit Insurance Corp., calculating each bank's troubled asset ratio, which compares troubled loans against the bank's capital and loan loss reserves. A similar ratio, known as a Texas Ratio, is commonly used by bank analysts as a snapshot of a bank's financial health, though it can't capture all the nuances of a bank's condition.
[..]
While the 10 largest banks reported $10.2 billion in earnings for the quarter, the remaining 8,245 banks together lost $2.6 billion, according to the analysis.
One in five banks lost money in the quarter, and several lost big, weighing down the rest.
Four large banks account for more than $5 billion in losses. Huntington National Bank of Columbus, Ohio, lost $2.46 billion. FIA Card Services of Wilmington, Del., lost $1.47 billion. SunTrust Bank of Atlanta lost $783 million. Sovereign Bank of Wyomissing, Pa., lost $764 million.
[..]
Most banks still have relatively low levels of troubled loans. But there was a worsening of the median troubled asset ratio for all banks, rising to 11.7 at the end of the quarter, up from 9.8 at year end 2008, and 4.9 at year-end 2007, when only one-quarter of the nation's metro areas were in recession.
[..]
The total of troubled assets rose to $285.2 billion at the end of the quarter. At the end of 2008, for the same banks, it was $233.7 billion. That's an increase of 22 percent in the quarter. At the end of the year 2007, it was $94 billion.
Out of 8,228 banks for which we have data for the latest two quarters, 4,918 showed a worsening ratio, or 59.8 percent. Only 2,776 banks, or 33.7 percent, showed improvement during the first quarter. And 534 banks, or 6.5 percent, kept the same ratio.
Most of the largest banks showed increasing burdens of bad loans. Out of the largest 100 banks, 86 showed declining ability to withstand losses. Only 11 improved. One maintained the same ratio. (Two did not report data that could be compared.)
The median troubled asset ratio for the 100 largest banks was 19.6 at the end of the quarter, up again from 16.7 at year end 2008, and 8.6 at year-end 2007.
The analysis relies on information reported through March 31 to the Federal Deposit Insurance Corp., calculating each bank's troubled asset ratio, which compares troubled loans against the bank's capital and loan loss reserves. A similar ratio, known as a Texas Ratio, is commonly used by bank analysts as a snapshot of a bank's financial health, though it can't capture all the nuances of a bank's condition.
[..]
While the 10 largest banks reported $10.2 billion in earnings for the quarter, the remaining 8,245 banks together lost $2.6 billion, according to the analysis.
One in five banks lost money in the quarter, and several lost big, weighing down the rest.
Four large banks account for more than $5 billion in losses. Huntington National Bank of Columbus, Ohio, lost $2.46 billion. FIA Card Services of Wilmington, Del., lost $1.47 billion. SunTrust Bank of Atlanta lost $783 million. Sovereign Bank of Wyomissing, Pa., lost $764 million.
[..]
Most banks still have relatively low levels of troubled loans. But there was a worsening of the median troubled asset ratio for all banks, rising to 11.7 at the end of the quarter, up from 9.8 at year end 2008, and 4.9 at year-end 2007, when only one-quarter of the nation's metro areas were in recession.
[..]
The total of troubled assets rose to $285.2 billion at the end of the quarter. At the end of 2008, for the same banks, it was $233.7 billion. That's an increase of 22 percent in the quarter. At the end of the year 2007, it was $94 billion.
Out of 8,228 banks for which we have data for the latest two quarters, 4,918 showed a worsening ratio, or 59.8 percent. Only 2,776 banks, or 33.7 percent, showed improvement during the first quarter. And 534 banks, or 6.5 percent, kept the same ratio.
Most of the largest banks showed increasing burdens of bad loans. Out of the largest 100 banks, 86 showed declining ability to withstand losses. Only 11 improved. One maintained the same ratio. (Two did not report data that could be compared.)
The median troubled asset ratio for the 100 largest banks was 19.6 at the end of the quarter, up again from 16.7 at year end 2008, and 8.6 at year-end 2007.