Financial Controls

Citigroup Financial Performance Drops: Revenues, Net Income, & EPS Decrease

2012-01-29T10:30:00.000-08:00

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Citigroup Earnings Drop: Revenues, Net Income, & EPS Decrease

Citigroup Summary Q4 2011 Citigroup Q4 financial performance disappointed and reached multi-quarter lows. However, debt and credit value adjustments plus various additional charges and credits create volatility each quarter. Net revenues swing up or down accordingly. This quarter it was down, last quarter it was up. Credit losses have been contained and core banking operations have stabilized. Financial position strengthened via a decrease in total assets therefore the capital ratio improved. Compared to the dismal financial results in 2007, 2008, and 2009, the current Q4 2011 performance is adequate, but still below peers. Annualized return on assets is +0.59%, which is greatly improved, but also below peers.

Citigroup Income Statement Q4 2011 Citigroup financial performance dropped with net revenues of $17.17 billion, net income of $1.17 billion, and earnings per share of $0.38. From the prior quarter Q3 2011, net revenues were down -17.56%, net income was down -69.11%, and earnings per share were down -69.11%. From the prior year Q4 2010, net revenues were down -6.52%, net income was down -11.00%, and earnings per share were down -11.63%. The operating margin was 7.94% and the net income margin was 6.78%. Both margins dropped significantly.

Citigroup Balance Sheet Q4 2011 Citigroup total assets are $1.875 trillion, a decrease of -3.16% QoQ and -2.04% YoY. The decrease in assets improved the capital position. Citigroup last had total assets of greater than $2 trillion in Q1 2010, and just for that quarter. Previously total assets dropped below $2 trillion in Q3 2008 and have remained below with the exception of Q1 2010. Return on assets was steady at +0.59%, which is low for banking but historically high for Citi. The capital to assets ratio (stockholder's equity to total assets) improved to 9.59%, which is much improved from 2007 and 2008 and a multi-year high. The financial regulatory Tier 1 common ratio is 11.8% and the Tier 1 capital ratio is 13.6%. All the capital ratios are adequate.

Citigroup (C) Rating Q4 2011 At December 31, 2011, we have rated Citigroup a "D-", the same as at September 30, 2011. Financial position is adequate and has slightly strengthened by reduction in total assets and increase in total equity. Financial performance continues adequate but has dropped. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.

Citigroup Financial Performance by the QuartersCitigroup Earnings Per Share Current Earnings per Share of $0.38 is -69.11% QoQ, -11.63% YoY, and an 8-quarter low. A 1-for-10 reverse stock split was effective May 6, 2011. Prior quarters were restated by Citigroup and increased EPS by a factor of ten times. Only recent, restated quarters are included in the chart below. The chart average EPS is $0.91.

Citigroup Net Revenues, Operating Income, and Net Income Consolidated revenues are reported net of interest expense as Net Revenues. Current Net Revenues of $17.17 billion are -17.56% QoQ, -6.52% YoY, and an 8-quarter low. Current Operating Income of $1.36 billion is an 8-quarter low. Current Net Income of $1.17 billion is -69.11% QoQ, -11.00% YoY, and an 8-quarter low. The chart averages for NR, OI, and NI are $18.39 billion, $-2.01 billion, and $-464 million, respectively.

Citigroup Operating Margin and Net Margin Current Operating Margin of 7.94% is a 4-quarter low. Current Net Margin of 6.78% is also a multi-year low. The chart averages for OM and NM are 16.60% and 12.94%, respectively.

Citigroup Capital to Assets, Tier 1 Common, and Tier 1 Capital Ratios The Tier 1 Capital Ratio of 13.60%, Tier 1 Common Ratio of 11.80%, and Capital Ratio of 9.59% are adequate. All are at multi-year highs. The chart averages for T1Capital, T1Common, and Capital Ratios are 12.64%, 9.17%, and 8.49%, respectively.

Citigroup Return on Assets Current Return on Assets of +0.59% is adequate, but well below the banking benchmark of +1.00%. The ROA chart average is -0.13%.

Citigroup Income Statement Components Current NonInterest Expense, operating expenses, of $12.46 billion appears to have stabilized and be contained, but has continued over $12 billion for 5 consecutive quarters and is at the high end of the recent range. Current Net Interest Income of $12.08 billion is an 8-quarter low and trending slightly downwards. Current NonInterest Revenue of $5.09 billion is an 8-quarter low and the primary driver of net income. Current Provision for Credit Losses and for Benefits and Claims of $2.87 billion is an 18-quarter low. The chart averages for NIE, NII, NIR, and PCL are $13.62B, $12.68B, $5.71B, and $6.79B, respectively.

Citigroup Operating Expense Ratio The current Operating Expense Ratio of 56.52% is an 8-quarter high. The chart average OER is 48.84%.

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Wells Fargo Reports Record Q4 Earnings: Strong Financial Performance & Position

2012-01-27T23:03:00.000-08:00

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Wells Fargo Reports Record Q4 Earnings: Strong Financial Performance & Position

Wells Fargo Summary Q4 2011 Well Fargo reported record quarterly net income of $4.11 billion and record earnings per share of $0.73. This was an overall strong financial performance, even though net revenues decreased YoY. Overall financial performance may be peaking as incremental quarterly gains are decreasing. Wells Fargo continues a conservative strategy which has maintained strong levels of capital, low credit losses, and resulted in a very good return on assets of 1.24%. The latest quarter reported continues the improvement of earnings and the balance sheet. Wells Fargo is rated highest by us of the largest USA banks (see below).

Wells Fargo Income Statement Q4 2011 Wells Fargo reported net revenues of $20.61 billion, record net income of $4.11 billion, and record earnings per share of $0.73. From the prior quarter Q3 2011, net revenues were up +4.98%, net income up +1.28%, and earnings per share up +1.39%. From the prior year Q4 2010, net revenues were down -4.14%, net income up +20.30%, and earnings per share up +19.67%, respectively. The operating and net margins decreased slightly to 29.40% and 19.93%, respectively.

Wells Fargo Balance Sheet Q4 2011 Total assets increased QoQ +0.68% and YoY +4.43% to $1.314 trillion. The capital to assets ratio (total stockholders' equity divided by total assets) increased to a strong 10.78%. Return on Assets improved to a very strong 1.24%. Gross Loans increased QoQ +1.25% and YoY +1.63% and Net Loans are an increasing share of the asset mix. The ALL/Loans ratio (Allowance for Loan Losses divided by Gross Loans) was 2.52%, should be adequate, and is the lowest since the QE December 2008.

Wells Fargo (WFC) Rating Q4 2011 At December 31, 2011, we have rated Wells Fargo an "A-", the same as at September 30, 2011. Financial position is strong and has slightly strengthened. Financial performance continues very good. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.

Wells Fargo Financial Performance by the Quarters (Charts)Below are financial performance charts for Wells Fargo after the merger of Wachovia in late 2008.

Wells Fargo Earnings per Share Current Earnings per Share of $0.73 is +1.39% QoQ, +19.67% YoY, another record high, and have increased for 8 consecutive quarters. The chart average EPS is $0.57.

Wells Fargo Net Revenues, Operating Income, Net Income Consolidated revenues are reported net of interest expense as Net Revenues. Current Net Revenues of $20.61 are +4.98% QoQ, -4.14% YoY, and a 4-quarter high. Current Operating Income of $6.06 billion is a 3-quarter low. Current Net Income of $4.11 billion is +1.28% QoQ, +20.30% YoY, the 7th consecutive quarterly increase, and another all-time high. The chart averages for NR, OI, and NI are $21.24 billion, $5.06 billion, and $3.38 billion, respectively.

Wells Fargo Operating Margin and Net Margin Current Operating Margin of 29.40% is a 3-quarter low. Current Net Margin of 19.93% is a 2-quarter low. The chart averages for OM and NM are 23.96% and 16.13%, respectively.

Wells Fargo Capital to Assets Ratio and Tier 1 Capital Ratio The Tier 1 Capital Ratio of 11.33%, Capital Ratio of 10.78%, and Tier 1 Common Ratio of 9.46% are adequate. All 3 ratios increased in the current quarter. The chart averages for T1 Capital, Capital, and T1 Common Ratios are 10.84%, 10.27%, and 8.27%, respectively.

Wells Fargo Return on Assets Current Return on Assets of 1.24% is a multi-year high and well above the banking benchmark of +1.00%. The chart average ROA is 1.06%.

Wells Fargo Income Statement Components Current NonInterest Expense, operating expenses, of $12.51 billion is a 3-quarter high. Current Net Interest Income of $10.89 billion is a 4-quarter high. Current NonInterest Revenue of $9.71 billion is a 4-quarter high. Current Provision for Credit Losses of $2.04 billion is a 3-quarter high. The chart averages for NIE, NII, NIR, and PCL are $12.41 billion, $11.15 billion, $10.08 billion, and $3.78 billion, respectively.

Wells Fargo Asset Mix Higher yielding Net Loans of 57.10% increased, offset by a corresponding decrease in lower yielding Cash and Investment Securities of 27.72%. The other categories (Mortgages and Loans for Sale, NonEarning Assets, and Mortgage Servicing Rights) are relativity stable and comprise the remaining 15.17% of total assets.

Wells Fargo Operating Expense Ratio The current Operating Expense Ratio of 56.62% is a 3-quarter. The chart average OER is 53.39%.

Tuesday, January 17, 2012WELLS FARGO REPORTS RECORD QUARTERLY AND FULL YEAR NET INCOMEQ4 Net Income of $4.1 billion; Q4 Revenue of $20.6 billionSAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $4.1 billion, or$0.73 per diluted common share, for fourth quarter 2011, compared with $3.4 billion, or $0.61 per share, for fourth quarter 2010, and $4.1 billion, or $0.72 per share, for third quarter 2011. Full year 2011 Wells Fargo net income was $15.9 billion, or $2.82 per share, up 28 percent from 2010.

“I’m extremely pleased with Wells Fargo’s performance in 2011 – including strong deposit and loan growth,record cross-sell and record earnings,” said Chairman and CEO John Stumpf. “We achieved these resultswhile completing the conversion of Wachovia’s retail banking stores – the largest such conversion in banking history – and now all of our 6,239 retail banking stores are on a single platform serving customers coast to coast. At the time of the merger, we said the integration of Wachovia would take three years and we are right on track. I couldn’t be prouder of how our two companies have come together as one, thanks to the important and tireless work of our more than 260,000 team members.

“In 2012, we are focused on Wells Fargo’s many opportunities, including continuing to provide ourcustomers with award winning service, welcoming new customers as we grow market share throughout ourmany businesses and geographies, achieving efficiency improvements across the company and returningeven more capital to our shareholders.”“The fourth quarter of 2011 was a very strong quarter for Wells Fargo, with record earnings, solid linkedquarter growth in loans, deposits and capital, and continued strong credit quality,” said Chief FinancialOfficer Tim Sloan. “Revenue was up 5 percent from the third quarter despite a full quarter’s impact of thenew debit interchange rules. As expected, expenses were higher in the quarter and we are maintaining ourtarget of $11 billion in noninterest expense in the fourth quarter of 2012.”

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JPMorgan Financial Results Decline: EPS at 7-Quarter Low

2012-01-23T02:58:00.000-08:00

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JPMorgan Financial Results Decline: EPS at 7-Quarter Low

JPMorgan Summary Q4 2011 JP Morgan's Q4 2011 financial results declined both QoQ and YoY. JPMorgan has definitely rebounded from the depths of the Great Recession and USA Financial System Crisis in 2008 and 2009, has adequate capital, and is profitable. A decrease in noninterest revenues resulted in the drop in financial performance and offset an impressive decrease in operating expenses (noninterest expense). Trading income, mortgage fees, and other fees and income were the cause of the decline in noninterest revenues. Core banking results, reflected in net interest income, are good. Annual return on assets are a respectable +0.85%, but decreasing. Whether financial performance can be accelerated anytime soon is the question and unknown. CEO Jamie Dimon was frank and admitted financial performance was "modestly disappointing".

JPMorgan Income Statement Q4 2011 Financial performance declined QoQ and YoY, but is adequate. Q4 2011 Net Revenues were $21.47B, Net Income was $3.73B, and Earnings Per Share was $0.90. For QoQ, these were down -9.65%, -12.53%, and -11.76%, respectively. For YoY, these were down -17.73%, -22.83%, and -19.64%, respectively. Both the Operating Margin of 22.11% and Net Margin of 17.36% declined QoQ and YoY. The operating expense ratio of 59.60% increased QoQ and YoY and continues too high.

JPMorgan Balance Sheet Q4 2011 Overall financial position is adequate and slightly stronger QoQ and slightly weaker YoY. JPMorgan's "fortress balance sheet" of $2.266 trillion in total assets maintains an adequate capital ratio of 8.10% and adequate Tier 1 Capital and Tier 1 Common ratios of 12.3% and 10.00%, respectively. Total assets were down -1.02% QoQ. Return on Assets of 0.85% is adequate and increased YoY but decreased QoQ.

JPMorgan (JPM) Rating Q4 2011 At December 31, 2011, we have rated JPMorgan Chase & Co. a "D", up from "F" at September 30, 2011. Financial position is adequate and has slightly strengthened by reduction in total assets and increase in total equity. Financial performance continues adequate but has slightly declined. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.

JPMorgan Financial Performance by the QuartersJPMorgan Earnings Per Share Current Earnings Per Share of $0.90 is -11.76% QoQ, -19.64% YoY, and a 7-quarter low. The EPS chart average is $0.76.

JPMorgan Net Revenues, Operating Income, and Net Income Consolidated revenues are reported net of interest expense as Net Revenues. Current Net Revenues of $21.47B are -9.65% QoQ, -17.73% YoY, and a 12-quarter low. Current Operating Income of $4.75B is a 7-quarter low. Current Net Income of $3.73B is -12.53% QoQ, -22.83% YoY, and a 7-quarter low. The chart averages for NR, OI, and NI are $21.47B, $4.39B, and $3.73B, respectively.

JPMorgan Operating Margin, Net Margin, and Capital to Assets Ratio Current Operating Margin of 22.11% is a 7-quarter low. Current Net Margin of 17.36% is also a 7-quarter low. Current Capital-to-Assets ratio (Capital Ratio) of 8.10% is adequate. The current Tier 1 Capital and Common Ratios are 12.3% and 10.9%, respectively, which are adequate. The chart averages for OM, NM, and CR are 18.08%, 14.25%, and 7.89%, respectively.

JPMorgan Return on Assets Current Return on Assets of +0.85% is respectable, but a 4-quarter low. The ROA chart average is +0.64%.

JPMorgan Income Statement Components Current NonInterest Expense, operating expenses, of $14.54B is a 6-quarter low. Current Net Interest Income of $12.13B is a 5-quarter high. Current NonInterest Revenue of $9.34B is a 12-quarter low. Current Provision for Credit Losses of $2.18B is a 2-quarter low. The chart averages for NIE, NII, NIR, and PCL are $13.57B, $11.52B, $11.13B, and $4.69B, respectively.

JPMorgan Growth Rates Current Net Revenues Growth Rate of -17.73% is a multi-quarter low. The NRGR chart average is -3.00%. Current Earnings per Share Growth Rate of -19.64% is a multi-quarter low. The EPSGR chart average is +24.23%.

JPMorgan Operating Expense Ratio Current Operating Expense Ratio of 59.60% is a multi-year high. The OER chart average is 52.93%.

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Goldman Sachs Earnings Rebound: Up QoQ, Down YoY

2012-01-19T09:45:00.000-08:00

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Goldman Sachs Earnings Rebound: Up QoQ, Down YoY

Goldman Sachs Summary Q4 2011 Goldman Sachs Q4 2011 financial results rebounded from the dismal Q3 performance, the worst since the QE November 2008 during the depths of the USA Financial System Crisis. However, results dropped YoY and this is a continuing trend, for 6 of the past 7 quarters now. NonInterest Revenues, which is primarily trading gains and losses plus investment banking income, are driving Net Income and then even less makes it to Earnings per Share. The world's most hated bankers continue to operate a casino with volatile, and downtrending, financial performance. The current Goldman Sachs investment strategy and business plan is wiping out GS common stockholders as very little is trickling down. There was a time in 2009 when GS stock and Apple stock were the same price... Financial position is questionable without the $173.55 billion in unsecured long-term borrowings being counted as capital by Goldman Sachs. We don't count this in our capital adequacy review. Significant uncertainty about Goldman Sachs future financial performance was generated earlier in 2011 and the concern continues.

Goldman Sachs Income Statement Q4 2011 Goldman Sachs reported net revenues of $6.05 billion, a net income of $1.01 billion, and earnings per share of $1.84. From the prior quarter Q3 2011, net revenues were up +68.64%, net income up +357.76%, and earnings per share up +319.05%. From the prior year Q4 2010, these were down -30.00%, -57.56%, and -51.45%, respectively. The operating and net margins increased QoQ and decreased YoY to 20.61% and 16.75%, respectively.

Goldman Sachs Balance Sheet Q4 2011 Total assets decreased QoQ -2.73% to $923 billion. The capital to assets ratio (total stockholders' equity divided by total assets) is a sub par 7.85%. Tier 1 capital (13.8%) and Tier 1 common (12.1%) are adequate. Return on assets decreased to a multi-year low of 0.48%.

Goldman Sachs (GS) Rating Q4 2011 At December 31, 2011, we have rated Goldman Sachs a "G+", down from "F-" at September 30, 2011. Financial position continues sub par, although very slightly strengthening. Financial performance continues below average. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.

Goldman Sachs Financial Performance by the Quarters

Goldman Sachs Earnings per Share Current Earnings per Share of $1.84 are +319.05% QoQ, -51.45% YoY, and a 2-quarter high. The chart average EPS is $3.00.

Goldman Sachs Net Revenues, Operating Income, Net Income Current Net Revenues of $6.05 billion are +68.64% QoQ, -30.00% YoY, and a 2-quarter high. Current Operating Income of $1.25 billion is a 2-quarter high. Current Net Income of $1.01 billion is +357.76% QoQ, -57.56% YoY, and an 2-quarter high. The chart averages for NR, OI, and NI are $8.60 billion, $2.72 billion, and $1.87 billion, respectively.

Goldman Sachs Operating Margin and Net Margin Current Operating Margin of 20.61% is a 2-quarter high. Current Net Margin of 16.75% is also a 2-quarter high. The chart averages for OM and NM are 30.40% and 20.67%, respectively.

Goldman Sachs Return on Assets Current Return on Assets of 0.48% continues the downtrend and is a multi-year low. The chart average for ROA is 1.07%.

Goldman Sachs Income Statement Components Current NonInterest Revenue of $4.98 billion is a 2-quarter high. NonInterest Revenue has been the primary driver of Net Income. Current NonInterest Expense, operating expenses, of $4.80 billion is a 2-quarter high. Current Net Interest Income of $1.07 billion is a 12-quarter low. The chart averages for NIR, NIE, and NII are $7.24 billion, $5.87 billion, and $1.36 billion.

Goldman Sachs Growth Rates Current Net Revenues Growth of -30.00% is the 7th consecutive quarterly decline. Current Earnings per Share Growth of -51.45% is dismal and the 2nd consecutive quarterly decline. The chart averages for NRG and EPSG are -19.08% and -30.20%.

Goldman Sachs Operating Expense Ratio The current Operating Expense Ratio of 59.91% is a 2-quarter low. The OER chart average is 50.82%.

*

Change in Accounting Periods The Goldman Sachs Group, Inc. (GS) changed from a fiscal year to a calendar year at the end of 2008 when the conversion to a bank holding company occurred. As a result, a fiscal quarter 3ME 11-30-08 was reported and the next quarter reported subsequently was the 3ME 3-31-09. The 1ME 12-26-08 was reported separately, as an "orphan month", and not included in a quarterly financial results.

GOLDMAN SACHS REPORTSEARNINGS PER COMMON SHARE OF $4.51 FOR 2011: FOURTH QUARTER EARNINGS PER COMMON SHARE WERE $1.84

NEW YORK, January 18, 2012 - The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $28.81 billion and net earnings of $4.44 billion for the year ended December 31, 2011. Diluted earnings per common share were $4.51 compared with $13.18 for the year ended December 31, 2010. Return on average common shareholders’ equity (ROE) was 3.7% for 2011.

Excluding the preferred dividend of $1.64 billion related to the redemption of the firm’s Series GPreferred Stock, diluted earnings per common share were $7.46 and ROE was 5.9% for the year ended December 31, 2011.

Fourth quarter net revenues were $6.05 billion and net earnings were $1.01 billion. Diluted earnings per common share were $1.84 compared with $3.79 for the fourth quarter of 2010 and a diluted loss per common share of $0.84 for the third quarter of 2011. Annualized ROE was 5.8% for the fourth quarter of 2011.

“This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “While our results declined as a consequence, I am pleased that the firm retained its industry-leading positions across our global client franchise while prudently managing risk, capital and expenses. As economies and markets improve – and we see encouraging signs of this – Goldman Sachs is very well positioned to perform for our clients and our shareholders.”

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Goldman Sachs to Announce Quarterly Earnings on Wednesday, January 18: Improved Quarter Expected

2012-01-11T22:57:00.000-08:00

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Goldman Sachs (GS) to Announce Quarterly Earnings

Goldman Sachs will report Q4 2011 financial results on Wednesday, January 18, before market open. The conference call will be at 9:30 a.m. ET.

Goldman Sachs Future and Past Financial Performance

Estimated Q4 2011 Earnings per Share (GAAP)

Yahoo Finance Analysts Estimates: $1.69 avg, $0.70 low, $3.52 high, 24 analysts

Prior Quarter: $-0.84

Prior Year: $3.79

Goldman Sachs Outlook: not provided

Prior Q3 2011 Financial Results (GAAP)When Goldman Sachs reports Q4 2011, the 3 months ended December, financial results on January 18, Goldman Sachs is expected to meet, beat, or miss various prior quarterly results. These prior quarterly GAAP financial results were:

Net Revenues $3.59B (net of interest expense)

Operating Income $-730M (before income taxes)

Net Income $-393M

Earnings per Share $-0.84

Operating Income Margin -20.35%

Net Income Margin -10.96%

Summary (GAAP) Overall, Goldman Sachs is expected to beat QoQ but miss YoY for Earnings per Share. Q4 EPS is expected to be positive, after the prior Q3 loss. Accordingly, other metrics should also improve QoQ and miss YoY: Net Revenues, Operating Income, Net Income, Operating Margin, and Net Margin. The operations of the world's most hated bankers can be described as a casino with volatile quarterly financial results. As of September 30, 2011, we have rated Goldman Sachs an "F-" here: "Largest 7 USA Banks: Ratings and Rankings".

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Visit Transcend.ws Environment, Future, Humanity, Reality, Technology, Universe

2012-01-10T19:28:00.001-08:00

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Visit OspreyFlyer.com Banking, Economy, Markets, Technology

2011-12-20T19:33:00.001-08:00

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Financial Controls Has Moved! (Link) Visit new website!

2011-11-21T22:34:00.001-08:00

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Financial Controls has moved to http://OspreyFlyer.com

Financial Controls Has Moved to a New Website! Financial Controls has merged with Osprey Flyer and moved to a new website http://OspreyFlyer.com. All new posts will be published there. The prior posts will remain archived here at the old website.

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Bank Failure Friday: FDIC Seizes 2 Banks! (Charts) 90 banks closed in 2011 year-to-date

2011-11-19T13:01:00.001-08:00

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2010 bank failures were 157 and 2009 bank failures were 140

The FDIC closed 2 banks on Friday, November 18, 2011, which increased total bank failures for 2011 to 90. This was the 37th week of the 46 weeks in 2011 to-date that the FDIC has seized at least 1 bank. Annual charts of USA Bank Seizures, FDIC Deposit Insurance Fund Cost of Failed Banks, and the FDIC Problem Bank List are below. States where banks have been closed in 2011 are (in alphabetical order): Alabama 2, Arizona 2, California 4, Colorado 6, Florida 12, Georgia 23, Illinois 9, Indiana 1, Iowa 1, Kansas 1, Louisiana 1, Michigan 2, Minnesota 2, Mississippi 1, Missouri 1, Nebraska 1, Nevada 1, New Jersey 1, New Mexico 1, North Carolina 2, Oklahoma 2, Pennsylvania 1, South Carolina 3, Texas 1, Utah 1, Virginia 2, Washington 3, Wisconsin 3.

#89 Polk County Bank, Johnston, IA

* Grinnell State Bank, Grinnell, IA to assume all of the deposits

* As of September 30, 2011, Polk County Bank had approximately $91.6 million in assets

* Grinnell State Bank agreed to purchase essentially all of the assets
* FDIC and Grinnell State Bank did not enter into a loss-share agreement

* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $12.0 million

* The last FDIC-insured institution closed in the state was Vantus Bank on September 4, 2009

#90 Central Progressive Bank, Lacombe, LA

* First NBC Bank, New Orleans, LA to assume all of the deposits

* As of September 30, 2011, Central Progressive Bank had approximately $383.1 million in assets

* First NBC Bank agreed to purchase $354.4 million of the assets
* FDIC will retain remaining assets for later disposition

* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.1 million

* The last FDIC-insured institution closed in the state was Statewide Bank on March 12, 2010

FDIC Losses The total estimated cost to the FDIC Deposit Insurance Fund for the 2011 bank closures year-to-date is $7.11 billion (see chart below). The most costly banks to the Deposit Insurance Fund in 2011 year-to-date:

1) The Park Avenue Bank, Valdosta, GA $306.1 million
2) Lydian Private Bank, Palm Beach, FL $293.2 million

3) Chicago Bank and Trust, Chicago, IL $284.3 million

4) Colorado Capital Bank, Castle Rock, CO $283.8 million

5) Atlantic Southern Bank, Macon, GA $273.5 million
6) Bank of the Commonwealth, Norfolk, VA $268.3 million

7) First Community Bank, Taos, NM $260.0 million

8) Superior Bank, Birmingham, AL $259.6 million

9) FirsTier Bank, Louisville, Ky $242.6 million
10) Community Banks of Colorado, Greenwood Village, CO $224.9 million

11) Bank of Choice, Greeley, CO $213.6 million

The next FDIC bank closings, if any, will most likely be announced on Friday, November 25.

USA Failed Banks by Year Bank failures, and therefore FDIC seizure of banks, dramatically increased in 2009 and 2010 - a 2-year total of 297 compared to 0 in both 2005 and 2006. As noted below regarding total problem banks, bank failures in 2011 are expected to continue at a high rate and be 100+. The chart below is the data from 2004 through 2010. Bank failures for 2011 are estimated by extrapolating 2011 actual closures based on a 52-week year.

Year, Total Bank Failures

2004: 4

2005: 0

2006: 0

2007: 3

2008: 25

2009: 140

2010: 157

2011: 90 actual, 102 estimated

FDIC Deposit Insurance Fund Cost of Failed Banks Failed banks and the seizure by the FDIC cost money. The seized banks' deposits are usually assumed by another bank as are most of the assets. However, not all assets of the failed bank have value (usually the worst performing loans, non-performing loans, repossessions, and foreclosures). The FDIC may enter into a loss-share agreement with another bank to manage the questionable assets or take direct possession of the assets and attempt to dispose of them. Upon seizure of a bank, the FDIC estimates the loss to the Deposit Insurance Fund. The Deposit Insurance Fund is normally funded by the banking community through FDIC assessments to each FDIC insured bank based on insured deposits, plus special assessments. Below is a chart of the estimates by the FDIC of costs (losses) incurred upon seizure of banks in 2011. The chart is by week for 2011 and shows the accumulated losses as the year goes along.

FDIC Problem Banks by Quarter The FDIC problem bank list dipped slightly from 888 at 3-31-11 to 865 at 6-30-11. The total problem banks remain elevated. The total assets of the problem banks from the year-ends 2004 through 2010 were $28B, $7B, $8B, $22B, $159B, $403B, $390B, respectively. The total assets of the current (6/30/2011) 865 problem banks is $372B, or an average of $430 million in total assets per problem bank. The FDIC reports the total problem banks on a quarterly basis.

Date, Total Problem Banks

12/31/2005: 52

12/31/2006: 50

12/31/2007: 76

12/31/2008: 252

12/31/2009: 702

12/31/2010: 884

6/30/11: 865

About the FDIC

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,513 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

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USA Industrial Production at Post-Recession High! (Chart) Highest since August 2008

2011-11-16T06:30:00.001-08:00

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Federal Reserve Statistical Release: Industrial Production and Capacity Utilization

Trend The short-term trend continues upwards, with 5 increases in the past 6 months. The intermediate-term trend and the long-term trend continue upwards.

Cycle History The current October 2011 USA Industrial Production Index is a Post-Great Recession peak of 94.71 (preliminary). A Great Recession cyclical low of 83.53 was set in June 2009. The Pre-Great Recession peak was reached of 100.72 in September 2007.

Industrial Production Index (Chart) Below is a multi-year chart of the USA Industrial Production Index including the Pre-Great Recession cyclical peak of 100.72 in September 2007 through the latest month reported. After the Great Recession cyclical low of 83.53 in June 2009, USA industrial production increased 15 consecutive months (July 2009 through September 2010). In the 13 months following, there have been 9 increases and 4 decreases and a Post-Great Recession high was set in October 2011 of 94.71 (preliminary).

Commentary The October 2011 USA Industrial Production Index of 94.72 (preliminary) eked out a new Post-Great Recession cyclical peak, which is encouraging. The Index was revised in prior months both positive and negative. Overall, the October 2011 monthly increase was strong at +0.68% and the current Index is above the midpoint (92.13) between the Pre-Recession peak and Recession low.

Official Statement by the Federal Reserve (November 16, 2011) Industrial production expanded 0.7 percent in October after having declined 0.1 percent in September. Previously, industrial production was reported to have gained 0.2 percent in September; most of this revision resulted from lower estimated output for mining. Factory output increased 0.5 percent in October after having risen 0.3 percent in September. Production at mines climbed 2.3 percent in October, while the output of utilitiesedged down 0.1 percent. At 94.7 percent of its 2007 average, total industrial production for October was 3.9 percent above its year-earlier level. Capacity utilization for total industry stepped up to 77.8 percent, a rate 2.1 percentage points above its level from a year earlier but 2.6 percentage points below its long-run(1972–2010) average.

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