Bank Failures 2013 - FDIC Closes 5 Banks in 2 Weeks!

Bank Failures 2013 continue with the FDIC closing 2 banks on Friday, April 26, 2013, after closing 3 last week. There now have been 10 bank failures this year. Banks have been closed in Arizona, Florida 2, Georgia 2, Illinois, Kentucky, Minnesota, North Carolina, and Washington in 2013.

#10 Douglas County Bank; Douglasville, GA
* Hamilton State Bank, Hoschton, GA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $316.5 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $86.4 million
* The last bank closed in the state had been Frontier Bank, LaGrange, on March 8, 2013

#9 Parkway Bank; Lenoir, NC
* CertusBank, NA, Easley, SC assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $108.6 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $18.1 million
* The last bank closed in the state had been Waccamaw Bank, Whiteville, on June 8, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois have accounted for 50% of 2013 bank failures (5 of 10) and accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 31. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.



Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $270.1 million. The total estimated losses in 2012 were $2.47 billion.



Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Douglas County Bank; Douglasville, GA $86.4M
2 Frontier Bank, LaGrange, GA $51.6M
3 Heritage Bank of North Florida, Orange Park, FL $30.2M
4 Covenant Bank, Chicago, IL $21.8M
5 Westside Community Bank, University Place, WA $20.3M
6 Parkway Bank; Lenoir, NC $18.1M
7 Gold Canyon Bank, Gold Canyon, AZ $11.2M
8 1st Regents Bank, Andover, MN $10.5M
9 Chipola Community Bank, Marianna, FL $10.3M
0 First Federal Bank, Lexington, KY $9.7M


Failed Credit Unions The NCUA has seized 6 failed credit unions in 2013:

Closed and Liquidated
* Shiloh of Alexandria Federal Credit Union of Alexandria, VA (April 12)
* Pepsi Cola Federal Credit Union of Buena Park, CA (March 18)
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Closed and Merged
* I.C.E. Federal Credit Union of Inglewood, CA (March 20)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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Bank Failures 2013 - FDIC Seizes Frontier Bank, LaGrange, GA

Bank Failures 2013 continue with the FDIC seizing Frontier Bank, LaGrange, GA on Friday, March 8, 2013. This is the fourth bank failure of the year. Banks have now been closed in Georgia, Illinois, Minnesota, and Washington in 2013.

#4 Frontier Bank, LaGrange, GA
* HeritageBank of the South, Albany, GA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $258.8 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $51.6 million
* The last bank closed in the state had been Hometown Community Bank, Braselton, on November 16, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 21. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.



Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $104.2million. The total estimated losses in 2012 were $2.47 billion.



Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:

1 Frontier Bank, LaGrange, GA $51.6M
2 Covenant Bank, Chicago, IL $21.8M
3 Westside Community Bank, University Place, WA $20.3M
4 1st Regents Bank, Andover, MN $10.5M

Failed Credit Unions The NCUA has seized 3 credit unions in 2013:

Closed and Liquidated
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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USA Bank Charge-Offs Lowest Since 2008

USA Bank Charge-Offs were at a 19-quarter low of 0.97% for the QE December 31, 2012. This is the lowest since the QE March 31, 2008 (0.99%). The financial crisis losses have been mostly worked off - at least the worthless credits the regulators have identified and ordered written-off.

Net Loans increased by +1.7% from the prior QE September 30, 2012. However, banks have been more risk-averse than before the 2008 - 2009 USA financial system crisis. Therefore, Loan Charge-Offs should continue to level off at a relatively lower rate or even decease further as loan underwriting standards are more conservative. The Net Charge-Off Rate is still high compared to historical rates.

USA Banks Net Charge-Off Rate by Quarter The USA Banks Net Charge-Off Rate was at a 19-quarter low of 0.97% for quarter ended December 30, 2012. The Net Charge-Off Rate peaked at 2.89% at the QE 12-31-09, during the USA financial system crisis.



USA Banks Net Charge-Off Rate by Segment For the quarter ended December 31, 2012, the Net Charge-Off Rates by segments were:
All institutions 0.97%
Credit card banks 3.55%
International banks 1.04%
Agricultural banks 0.34%
Commercial lenders 0.70%
Mortgage lenders 0.59%
Consumer lenders 1.50%
Other specialized (< $1 billion total assets) 0.64%
All other (< $1 billion total assets) 0.46%
All other (> $1 billion total assets) 0.85%

Loan Losses Improve Across All Loan Categories (FDIC Quarterly Banking Profile, February 26, 2013) Asset quality indicators continued to improve in the fourth quarter. Net charge-offs (NCOs) totaled $18.6 billion, down $7 billion (27.4 percent) from fourth quarter 2011. This is the 10th consecutive quarter that NCOs have declined. It is the lowest quarterly NCO total since fourth quarter 2007. All major loan categories showed year-over-year improvement in quarterly NCO amounts. The largest declines occurred in 1-to-4 family residential mortgages, where quarterly NCOs fell by $1.5 billion (29.3 percent), in real estate construction and development loans, where NCOs declined by $1.3 billion (62.6 percent), in credit cards, where NCOs were $1 billion (14.1 percent) lower, and in loans to commercial and industrial (C&I) borrowers, where NCOs were also $1 billion (39.7 percent) lower.

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USA Banks Return on Assets Highest Since 2006

USA Banks Return on Assets of +1.00% for 2012 signals continued improvement in profitability and ongoing stability in the banking system. There were 7,083 financial institutions reporting. The prior year 2011 was +0.88%. The current ROA is the highest since 2006 (+1.28%).

Return on assets reflects the overall performance, and health, of the banking system and takes into account all of the income statement components, including net interest margins, loan loss provisions, operating expenses, and income taxes. Return on assets also indicates how effectively and efficiently assets are being deployed and if the asset mix is ultimately profitable. An ROA of +1.00% is a banking benchmark.

USA Banks Return on Assets by Year The USA Banks Return on Assets (ROA) was +1.28% for the years ended 2004, 2005, and 2006. The ROA decreased to +0.81% and +0.03% in 2007 and 2008, respectively. The ROA then turned negative to -0.07% in 2009, before rebounding to +0.65%, +0.88%, and now +1.00% in 2010, 2011, and 2012, respectively.



USA Banks Return on Assets by Segment For 2012, the ROA by banking segments was:
All institutions +1.00%
Credit card banks +3.14%
International banks +0.80%
Agricultural banks +1.27%
Commercial lenders +0.89%
Mortgage lenders +0.87%
Consumer lenders +1.47%
Other specialized (< $1 billion total assets) +1.24%
All other (< $1 billion total assets) +0.87%
All other (> $1 billion total assets) +1.00%

Full-Year Earnings Are Second Highest Ever (FDIC Quarterly Banking Profile, February 26, 2013) Full-year net income totaled $141.3 billion, a $22.9 billion (19.3 percent) improvement over 2011. This is the second-highest annual earnings ever reported by the industry, after the $145.2 billion total in 2006, when the industry had $2.7 trillion less in assets. The average ROA rose to 1.00 percent from 0.88 percent in 2011. The largest contribution to the increase in earnings came from reduced provisions for loan losses, which fell by $19.3 billion (24.9 percent). Noninterest income was $18.4 billion (8 percent) higher than in 2011, thanks to an $11.2 billion (174.4 percent) increase in gains on loan sales, a $6.8 billion (93.9 percent) increase in servicing income, and a $2.4 billion (51.8 percent) reduction in losses on foreclosed property sales. The improvement in noninterest income was limited by a $12.4 billion negative swing in results from trading credit exposures. Net interest income was $1.3 billion (0.3 percent) lower than in 2011, as the full-year NIM fell from 3.60 percent to 3.42 percent. Realized gains on securities and other assets added $4.2 billion (75.7 percent) more to pretax earnings than a year earlier.

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Bank Failure Friday: FDIC Seizes Frontier Bank, LaGrange, GA

Bank Failures 2013 continue with the FDIC seizing Frontier Bank, LaGrange, GA on Friday, March 8, 2013. This is the fourth bank failure of the year. Banks have now been closed in Georgia, Illinois, Minnesota, and Washington in 2013.

#4 Frontier Bank, LaGrange, GA
* HeritageBank of the South, Albany, GA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $258.8 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $51.6 million
* The last bank closed in the state had been Hometown Community Bank, Braselton, on November 16, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3. Florida, Georgia, and Illinois accounted for 26 total or 51% of all bank failures in 2012.

Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 21. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.



Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $104.2million. The total estimated losses in 2012 were $2.47 billion.



Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Frontier Bank, LaGrange, GA $51.6M
2 Covenant Bank, Chicago, IL $21.8M
3 Westside Community Bank, University Place, WA $20.3M
4 1st Regents Bank, Andover, MN $10.5M


Failed Credit Unions

The NCUA has seized 3 credit unions in 2013:
Closed and Liquidated
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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FDIC Deposit Insurance Fund Balance at Multi-Year High

FDIC Deposit Insurance Fund The FDIC Deposit Insurance Fund (DIF) balance and related Provision for Insurance Losses (PIL) indicate continued improvement through the 3 months ended December 31, 2012. During the 2008 financial system crisis and the Great Recession, the Provision for Insurance Losses increased, and therefore the DIF decreased, as a result of bank failures and the resulting costs of seizure and liquidation. However, the FDIC problem bank list remains high which indicates ongoing bank failures and DIF costs. Bank failures and the related charts of total failures and cost to the FDIC Deposit Insurance Fund are posted as occurring on this blog.

FDIC Deposit Insurance Fund by Quarter The FDIC Deposit Insurance Fund balance was +$32.96 billion at the quarter ending 12-31-12. This is the 7th consecutive quarterly positive balance, after 7 consecutive negative quarters, and a 17-quarter high. The peak balance was +$52.84 billion at QE 3-31-08. This was before the 2008 USA financial system crisis and Great Recession. The low balance was -$20.86 billion at the QE 12-31-09. The Provision for Insurance Losses (PIL), the cost of seizing and liquidating failed banks, was a negative -$3.34 billion at QE 12-31-12. The PIL peaked at +$21.69 billion for the QE 9-30-09. Prior to the QE 3-31-08, the PIL was an immaterial amount, positive or negative, of less than $100 million each quarter.



DIF Balance Increases (FDIC Quarterly Banking Profile, February 26, 2013) The Deposit Insurance Fund (DIF) increased by $7.7 billion during the fourth quarter to $33.0 billion. Assessment income of $2.9 billion, a negative provision for insurance losses of $3.3 billion, and $1.8 billion previously set aside for debt guarantees under the FDIC’s Temporary Liquidity Guarantee Program were the main drivers of growth.

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FDIC Problem Banks List Decreases for 7th Consecutive Quarter

The FDIC problem banks list decreased by 43 to 651 at December 31, 2012 for the 7th consecutive quarterly decline and a 13-quarter low. The total continues very high, but has dropped below 700 after 11 consecutive quarters above. The problem banks list has peaked and continues a downtrend and bank failures also continue decreasing accordingly. Bank failures and the related charts of total failures and cost to the FDIC Deposit Insurance Fund are posted as occurring on this website.

There were 7,083 financial institutions reporting and the problem banks list of 651 represents 9.19% of the total and a 12-quarter low. This is down from 9.66% at the prior QE 9-30-12 and down from the peak of 11.72% for the QE 3-31-11. In a healthy economy and banking system, less than 1% of financial institutions are on the problem banks list and this can be as low as 0.50% (1/2 percent).

FDIC Problem Banks by Quarter The FDIC problem banks list peaked at 888 at March 31, 2011. The total problem banks remain elevated but is decreasing. The problem banks list has decreased 7 consecutive quarters, after increasing 18 consecutive quarters (from Q4 2006 through Q1 2011). The total assets of the problem banks from the year-ends 2004 through 2012 (in billions) were $28, $7, $8, $22, $159, $403, $390, $319, and $238, respectively. The total assets of the current (12/31/2012) 651 problem banks is $238 billion, or an average of $366 million in total assets per problem bank. The FDIC reports the total problem banks on a quarterly basis.



Quarterly Failures Decline to 4 ½ Year Low (FDIC Quarterly Banking Profile, February 26, 2013) In the fourth quarter, the number of insured commercial banks and savings institutions reporting financial results fell from 7,181 to 7,083. During the quarter, 88 institutions were merged into other banks, and eight insured institutions failed. This is the smallest number of failures in a quarter since second quarter 2008. For the sixth quarter in a row, no new reporting institutions were added. The year 2012 is the first in FDIC history that no new reporting institutions were added, and the second year in a row with no start-up de novo charters (the three new reporters in 2011 were all charters created to absorb failed banks). The number of institutions on the FDIC’s “Problem List” declined for a seventh consecutive quarter, from 694 to 651. Total assets of “problem” institutions fell from $262 billion to $233 billion. During the fourth quarter, insured institutions increased the number of their employees by 4,259 (0.2 percent).

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Peter Schiff: Fed Has No Exit Strategy!

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Peter Schiff

Bernanke Almost Comes Clean On "Exit" Strategy

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Visa Launches Visa Ready Partner Program

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Visa reported QE December 2012 financial results on February 6

Visa Introduces Visa Ready Partner Program

* Accelerates the deployment of innovative payment solutions globally
* Enables financial institutions and merchants to take advantage of new payment technologies, such as mobile NFC payments, mobile point-of-sale acceptance solutions
* Visa Ready symbol will identify new payment devices and solutions approved by Visa

FOSTER CITY, Calif. -- (BUSINESS WIRE) -- Feb. 22, 2013 -- Visa today launched a new partner program designed to accelerate the introduction of innovative payment solutions globally and further drive the global migration from cash to electronic payments. The Visa Ready Partner Program paves the way for mobile device manufacturers, technology partners, mobile network operators, and others, to easily navigate the complexities of the payments ecosystem, and to gain access to Visa IP, licenses and best practices.

"The pace of innovation in the payments industry requires a new approach that ensures innovative payment methods can be tested, approved and commercialized quickly," said Jim McCarthy, global head of product, Visa Inc. "While it is critical that we ensure new payment methods are secure and reliable, it is equally important to allow great ideas to become new ways to pay and be paid."

The Visa Ready Partner Program is designed to provide innovators a path to ensure that devices, software and solutions used to initiate or accept Visa payments are compatible with Visa's requirements, which may vary by country. It also provides a framework for the collaboration with Visa, as well as guidance and best practices to access the power of the Visa network. Mobile point-of-sale acceptance (mPOS) providers, mobile NFC-enabled device manufacturers, and chip and platform providers are among the stakeholders that are already playing a critical role in enabling new ways to pay and that will benefit from the Visa Ready Partner Program.

For financial institutions and merchants, the Visa Ready Partner Program will make it easier for them to adopt new, innovative payment methods that are approved by Visa and can help them drive business growth by expanding the use and acceptance of electronic payments globally. The program will use existing approval and certification processes from payments industry standards bodies and will rely on labs certified by EMVCo and the Payment Card Industry Security Standards Council (PCI SCC) to conduct testing of new payment solutions.

At launch, the Visa Ready Partner Program encompasses Visa's existing program for the approval of mobile NFC-enabled devices, as well as a new program to enable mobile point-of-sale acceptance solutions that meet local requirements. In addition, Visa has developed the Visa Ready symbol to identify payment devices and solutions approved for use with Visa payments.

Read more at Visa Introduces Visa Ready Partner Program

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Bank Failures 2013 - FDIC Seizes Covenant Bank of Chicago

Bank Failures 2013 continue with the FDIC seizing Covenant Bank, Chicago, IL on Friday, February 15, 2013. This is the third bank failure of the year. Banks have now been closed in Illinois, Minnesota, and Washington in 2013.

#3 Covenant Bank, Chicago, IL
* Liberty Bank and Trust Company, New Orleans, LA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $58.4 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $21.8 million
* The last bank closed in the state had been Citizens First National Bank, Princeton, on November 2, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 22. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.



Cost of Failed Banks The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $52.6 million. The total estimated losses in 2012 were $2.47 billion.



Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Covenant Bank, Chicago, IL $21.8M
2 Westside Community Bank, University Place, WA $20.3M
3 1st Regents Bank, Andover, MN $10.5M


Failed Credit Unions

The NCUA has seized 2 credit unions in 2013:
Closed and Liquidated
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7, 2013)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8, 2013)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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Bank Ratings: U.S. Bancorp Tops, Morgan Stanley Last

Bank Ratings Through December 31, 2012

The 10 Largest USA Banks have reported fourth quarter 2012 financial results, i.e., financial performance for the quarter ending 12-31-12 and financial position at 12-31-12. There were several changes in the quarterly ratings: 4 upgrades and 2 downgrades. The median score is "D" and the average score for the quarter ending December 2012 is "C+", an increase from the average score of "C" for the prior quarter ending September 2012.

Largest USA Banks Rankings The 10 Largest USA Banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Rating, Bank, Change
A     U.S. Bancorp
A-    Wells Fargo
A-    Capital One
A-    PNC Financial Services, upgrade from B+
B+   BNY Mellon, upgrade from B
B-    Citigroup, upgrade from E+
C+   Bank of America, downgrade from B-
D     JPMorgan Chase
D     Goldman Sachs, upgrade from F-
G     Morgan Stanley, downgrade from E-
B+   Average

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo, Capital One, and PNC Financial Services at "A-". These 4 banks have moved positively beyond the 2008 financial crisis. BNY Mellon and Citigroup are next at "B+" and "B-", respectively.

Average Bank of America is at the average of "C+".

Below Average JPMorgan Chase and Goldman Sachs are next at "D", which is the median rating. Trailing the field is Morgan Stanley at a dismal "G".

Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with the latest quarterly financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score can vary each quarter.

Financial position is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from internal and/or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominant intent of the ratings.

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AIG Earnings Review: Closes Door on Financial Crisis

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AIG reported QE December 2012 financial results on February 21

AIG Weathers Storm Sandy, Posts Profit

Self-proclaimed "leading international insurance organization" American International Group (AIG) reported a beat on Non-GAAP core operating earnings per share of $0.20 versus an expected loss of -$0.08 for the quarter ended December 2012. This is well below the prior year EPS of $0.77 (revised) but encouraging nonetheless as Hurricane Sandy losses were recognized this quarter. Non-GAAP profit was $290 million compared to $1.5 billion a year ago. Read more and see charts at Seeking Alpha.

About AIG

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide propertycasualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

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AIG Earnings Preview: Slow Quarter Expected

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AIG reports QE December 2012 financial results on February 21

AIG Earnings Preview: Slower Quarter On Deck

Self-proclaimed "leading international insurance organization" American International Group (AIG) reports quarter ending December 2012 earnings on Thursday, February 21, after market close. CEO Robert Benmosche is expected to deliver investors a slower quarter for both GAAP and Non-GAAP earnings per share. Read more and see charts at Seeking Alpha.

About AIG

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide propertycasualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

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Capital One Sells Best Buy Credit Cards to Citigroup

Capital One reported QE December 2012 financial results on January 17

Capital One To Sell Best Buy Card Portfolio

Capital One and Best Buy End Credit Card Partnership

MCLEAN, Va., Feb. 19, 2013 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced that it has reached an agreement to sell the portfolio of Best Buy private label and co-branded credit card accounts, with current loan balances of approximately $7 billion, to Citi. In addition, Capital One and Best Buy have agreed to end their contractual credit card relationship early.

The sale of the loans to Citi, which is subject to customary closing conditions, and early termination of the Best Buy partnership are expected to be finalized in the third quarter of 2013. Upon closing, Capital One expects that the proceeds from the sale will approximate the book value of the accounts, resulting in no significant gain or loss on the transaction.

"We have a proven, scale partnerships infrastructure and a great portfolio of partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships. "Our partnerships business continues to deliver strong contributions to our results and serves as a platform for future growth potential."

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $212.5 billion in deposits and $312.9 billion in total assets outstanding as of December 31, 2012. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has more than 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

Capital One To Sell Best Buy Card Portfolio

$COF $C $BBY $XLF

MetLife Reports Respectable Earnings

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MetLife reported QE December 2012 financial results on February 13

MetLife Earnings: Where Do We Go From Here?

Global insurance provider MetLife (MET) reported respectable Non-GAAP financial results in operating earnings per share ($1.25), net revenues ($18.36 billion), operating income ($1.97 billion), and operating earnings ($1.40 billion) for the quarter ending December 2012. This is a beat of $0.07 on Non-GAAP earnings per share. Read more and see the charts at Seeking Alpha.

About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

$MET $XLF

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MetLife to Acquire Pension Administrator Provida in Chile

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MetLife reported QE December 2012 financial results on February 13

MetLife to Acquire BBVA’s Chilean Pension Business for Approximately $2 Billion

Transaction Significantly Contributes to MetLife’s Emerging Market Strategy; Transforms Business in Chile

NEW YORK -- (BUSINESS WIRE) -- Feb. 1, 2013 -- MetLife, Inc. (NYSE: MET) announced today it has entered into a definitive agreement with BBVA to acquire AFP Provida S.A. (“Provida”), the largest private pension fund administrator in Chile. Under the terms of the agreement, MetLife will conduct a public cash tender offer for all of the outstanding shares of Provida, and BBVA has agreed to transfer its 64.3% stake to MetLife. Assuming all publicly-held shares are tendered, the purchase price, which MetLife will fund from its existing cash balances, would be approximately $2 billion.

In addition to the purchase price payable by MetLife in the tender offer, Provida shareholders are expected to receive from Provida, prior to the closing, dividends representing excess cash as well as the proceeds from the sale of Provida’s minority stakes in other businesses in Mexico and Peru, which are not being acquired by MetLife.

The acquisition of Provida aligns with MetLife’s strategic focus, which includes capitalizing on growth opportunities in emerging markets. The transaction also includes a small asset management business in Ecuador.

With this acquisition, MetLife is delivering on a key component of our strategy – expanding our presence in emerging markets,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. “MetLife is a leader in both life insurance and annuities in Chile, and Provida will further strengthen our position by adding the country’s top pension franchise. The acquisition also supports our focus on shifting our business mix to less capital intensive products. We expect it to be immediately accretive to earnings.”

With the acquisition of Provida, MetLife’s operating earnings from emerging markets are expected to grow from 14% today to approximately 17%. At current exchange rates on an unaudited IFRS accounting basis, net income for the businesses to be acquired, based on information publicly filed by Provida, was approximately $189 million for the 12 month period ended September 30, 2012. The transaction, which is anticipated to close in the third quarter of 2013, is expected to provide operating earnings accretion of approximately $0.05 per share in 2013 and $0.15 per share in 2014.

About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

MetLife to Acquire BBVA’s Chilean Pension Business for Approximately $2 Billion

$MET $XLF

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MetLife No Longer Designated Bank Holding Company

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MetLife reported QE December 2012 financial results on February 13

MetLife Sheds Bank Holding Company Status with Approvals from the Federal Reserve and FDIC

NEW YORK -- (BUSINESS WIRE) -- Feb. 14, 2013 -- MetLife, Inc. (NYSE: MET) announced today that it has received the required approvals from both the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve to deregister as a bank holding company.

MetLife completed its sale of MetLife Bank’s depository business to General Electric Capital on January 11.

About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

MetLife Sheds Bank Holding Company Status with Approvals from the Federal Reserve and FDIC

$MET $XLF

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PNC Financial Services Names New CEO

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PNC Financial Services reported QE December 2012 financial results on January 17

William S. Demchak To Succeed James E. Rohr As PNC Chief Executive Officer

Rohr to Become Executive Chairman

PITTSBURGH, Feb. 14, 2013 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) Board of Directors today elected President William S. Demchak as director and announced that he will succeed Chairman James E. Rohr as chief executive officer. PNC expects Demchak to become president and chief executive officer and Rohr to assume the new position of executive chairman effective at the Annual Meeting of Shareholders on April 23, 2013.

The board acted today in response to Rohr's desire to step down as chief executive officer at the 2013 Annual Meeting and retire from the company and the board next year. Rohr, 64, will serve as executive chairman for one year to ensure a smooth transition.

"Bill has demonstrated exceptional leadership since joining PNC in 2002," Rohr said. "As president, he drove customer growth by successfully aligning our businesses to deliver the entire company for our clients. His candor and work ethic have earned him the trust of employees and investors, and the confidence of PNC's board. He deserves the opportunity to steer PNC into the future."

Demchak joined PNC in 2002 as chief financial officer. In 2005, he became head of Corporate & Institutional Banking. He was promoted to senior vice chairman in 2009 and named head of all PNC businesses in 2010. He was elected PNC president in April 2012. Prior to joining PNC, Demchak served as head of Structured Finance and Credit Portfolio for JPMorgan Chase & Co.

Demchak is a director of BlackRock, Inc. He earned his undergraduate degree at Allegheny College and an MBA at the University of Michigan.

About PNC Financial Services

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.

William S. Demchak To Succeed James E. Rohr As PNC Chief Executive Officer

$PNC $XLF

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Visa Earnings Rise

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Visa reported QE December 2012 financial results on February 6

Visa Earnings Push Higher

Visa (V) reported record gross revenues ($3.399 billion), net revenues ($2.85 billion), and record operating income ($1.80 billion) for the quarter ending December 2012. Net income ($1.293 billion) was the second best ever, as was GAAP earnings per share ($1.93). However, a tax benefit of $0.11 was included in earnings per share. Margins were solid. Total transactions volume increased +6% worldwide over December 2011. Read more and see charts at Seeking Alpha.

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Max Keiser: Fake-It-Til-You-Make-It Economy

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Max Keiser

Keiser Report: Fake-It-Til-You-Make-It Economy

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the global yellow cake baking, talcum powder shaking, perpetual war making, balloon boy chasing, fake it til you make it economy in which spoof trading and a shadow banking system collateralized by a combination of liar loans and temporary workers consuming genetically modified food-like products produces such heroes for our times as Robb U, the guy who was handed $6 million in loans based on having a YouTube music video with a million plus views.

In the second half of the show, Max Keiser talks to former Scotland Yard fraud squad detective, Rowan Bosworth-Davies of Rowans-Blog.blogspot.co.uk about justice departments and regulators going after the 'little guy' because he is 'easier' to get than the too-big-to-fail.

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Morgan Stanley Earnings Review: Up and Down They Go

Morgan Stanley reported QE December 2012 financial results on January 18

Morgan Stanley earnings per share were $0.25. Though meager, this is a major rebound of +145% from the prior quarter (-$0.55 loss per share) and whopping +267% spike from the prior year (-$0.15 loss per share). In the past 16 quarters, the average earnings per share has been $0.15, consisting of 7 quarters of losses and 9 quarters of earnings. This has ranged from a low of -$1.10 in June 2009 to a high of +$1.15 in September 2011. Therefore, from a historical perspective, Morgan Stanley actually had an above average quarter!

Financial performance, or lack thereof, is flat with a return on assets just above break-even at +0.08% for 2012. Financial position is weak and capital is marginal. Risk management has been ineffective.





Morgan Stanley does this to themselves and to their clients. CEO James Gorman noted 4 quarters ago that MS continues "addressing a number of outstanding strategic and legacy issues." I guess that's one way to say it. Another way to say it is: we lie, cheat, and steal. The general public is not as familiar with Morgan Stanley as they are Goldman Sachs, JPMorgan, Bank of America, Citigroup, et al. in the Wall Street Banksters syndicate. They are just as criminally inclined if not more so.

At QE 12-31-12, I have rated Morgan Stanley a "G" on a scale of A+ to G-. This is a downgrade from "E-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here and the QE 12-31-12 bank ratings will be posted soon.





James P. Gorman, Chairman and Chief Executive Officer, said, "After a year of significant challenges, Morgan Stanley has reached a pivot point. We demonstrated meaningful progress in our Wealth Management Joint Venture, reaching the highest pre-tax margin since the inception of the JV. We charted a path to acquire the remainder of the JV. We are ahead of our risk-weighted asset reduction targets for Fixed Income and Commodities, while continuing to focus on our strengths within business and strategic linkages across the Firm and investing for the evolving regulatory environment. We continued to demonstrate leadership in Investment Banking and Equity sales and trading. Our Firm is now poised to reach the returns of which it is capable on behalf of our shareholders."

$MS $XLF

Capital One Earnings Review: Performance Slows

Capital One reported QE December 2012 financial results on January 17

Capital One earnings per share of $1.41 was a -30% drop from the prior quarter ($2.01) but a sizable +60% jump from the prior year ($0.88). CEO Richard Fairbank is expected to report an improved financial performance next quarter.

Financial position and capital remain very strong. Risk management appears very good. Operating expenses and losses continue somewhat high historically in relation to gross revenues.





At QE 12-31-12 I have rated Capital One an "A-" on a scale of A+ to G-. This is no change in the rating from the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







"Capital One remains well positioned to deliver sustained shareholder value through sure-footed execution, substantial capital generation, and disciplined capital allocation for the benefit of our shareholders," said Richard D. Fairbank, Chairman and Chief Executive Officer. "As a first step, we expect to return to a meaningful dividend in 2013, following the completion of the current CCAR process."

"Seasonal expense and margin trends led to a reduction in fourth quarter earnings compared to the previous quarter," said Gary L. Perlin, Capital One's Chief Financial Officer. "With a few exceptions largely related to these seasonal patterns, fourth quarter 2012 results give us a good picture of what to expect in terms of pre-provision earnings in 2013, assuming little change in the external environment."

$COF $XLF

PNC Earnings Review: Poised to Perform

PNC Financial Services reported QE December 2012 financial results on January 17

PNC earnings performance slowed from the prior quarter yet was a solid increase from the prior year. Earnings per share of $1.24 was down -24% QoQ but up an impressive +46% YoY. CEO James Rohr overall delivered a good quarter.

Financial position continues impressive with very strong capital. Net loans are almost 60% of total assets, which should translate into ongoing profits. Risk management appears very good. Operating expenses and losses continue high historically in relation to gross revenues, mostly due to the RBC Bank (USA) acquisition and merger.





At QE 12-31-12, I have rated PNC Financial Services an "A-" on a scale of A+ to G-. This is an upgrade from "B+" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







"PNC expanded its businesses significantly in 2012," said James E. Rohr, chairman and chief executive officer. "Our balance sheet strength along with our committed employees allowed us to grow customers, loans and deposits across our franchise and expand into Southeastern markets. While we are pleased with the progress we have made, our financial results do not yet reflect the full potential from our investments. Our commitment to revenue growth, expense reduction and efficient capital management in 2013 should position PNC to deliver even greater shareholder value."

$PNC $XLF

Citigroup Earnings Review: Downtrend Reversed!

Citigroup reported QE December 2012 financial results on January 17

Citigroup earnings rebounded from the prior quarter and the prior year. However, current earnings per share of $0.38 is below the 16-quarter average of $0.58. Michael Corbat is now CEO, replacing Vikram Pandit, in this dawn of a new era.

Financial performance is stabilizing and slightly uptrending. Financial position is solid and capital continues strengthening. The problem is risk management has been proven incompetent over the years. Operating expenses and losses continue high historically in relation to gross revenues. Citigroup ($1.86 trillion total assets) is in the Trillion Dollar Assets Club with JPMorgan, Bank of America, and Wells Fargo.





At QE 12-31-12, I have rated Citigroup a "B-" on a scale of A+ to G-. This is an upgrade from "E+" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







Michael Corbat, Citigroup's Chief Executive Officer, said, "Our bottom line earnings reflect an environment that remains challenging – with businesses working through issues like spread compression and regulatory changes – as well as the costs of putting legacy issues behind us. However, we did make progress on several fronts. At 8.7%, we reached the target for our year-end Basel III Tier 1 Common ratio. We continue to have a very liquid balance sheet and a high-quality credit portfolio in our core businesses. It will take some time to work through the challenges of the current environment but realizing our core earnings potential, as well as improving our returns on assets and tangible equity, are critical goals going forward."

$C $XLF

Bank of America Earnings Review: Limping Along

Bank of America reported QE December 2012 financial results on January 17

A Bank of America earnings prayer: How long oh Lord? How long, oh Lord, must this greatest banking debacle in history continue? When reviewing Bank of America, the World's Most Unstable Bank, we are talking pennies, as in pennies per share. This quarter earnings per share were $0.03, last quarter was $0.00 per share. The 18-quarter average has been a loss per share of -$0.03. Lowered expectations and a divine entreaty sum up financial performance.



CEO Brian Moynihan continues cleaning up the financial crisis carnage. Moynihan announced 2 quarters ago a Project New BAC: a multi-year, multi-billion dollar cost cutting plan which will include a workforce reduction of tens of thousands. The prior "banking" model had shattered and collapsed into rubble.

The foremost problem is contingent liabilities, ongoing legacy losses, that surface and the lawsuits and government regulatory actions that result. After reserving billions of dollars, the worst of the incredible and extraordinary losses appear accounted for. Only time and fate will tell.

The financial performance volatility has lessened in recent quarters. Risk management consists of all hands on deck searching the skies for incoming realized losses and hoping they are adequately reserved for. Financial position has stabilized and capital is actually strong. Operating expenses and losses are too high in relation to gross revenues.



At QE 12-31-12, I have rated Bank of America a "C+" on a scale of A+ to G-. This is a downgrade from "B-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.





“We enter 2013 strong and well positioned for further growth,” said Chief Executive Officer Brian Moynihan. “Double-digit growth since last year in mortgage production, commercial lending, and Global Markets revenue demonstrates the power of deeper customer and client relationships as we intensify the focus on connecting all our capabilities.”

"We addressed significant legacy issues in 2012 and our strengths are coming through," said Chief Financial Officer Bruce Thompson. "Capital and liquidity remain strong and credit continues to improve. Our primary focus this year is to grow revenue, manage expenses and drive core earnings growth."

$BAC $XLF

BNY Mellon Earnings Review: Another Average Quarter

BNY Mellon reported QE December 2012 financial results on January 16

BNY Mellon earnings per share were about average at $0.53, compared to the 13-quarter average of $0.51. Net revenues ($3.62 billion), operating income ($853 million), and net income ($646 million) were also near the long-term averages.

CEO Gerald Hassell continues a conservative strategy and financial position which minimizes volatility and surprises in the long-run. Financial position is stable with a strong capital position. Risk management appears very good. A share repurchase program continues in effect.





At QE 12-31-12 I have rated Bank of New York Mellon a "B+" on a scale of A+ to G-. This is an upgrade from "B" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







“We are pleased to report strong year-over-year growth in fees in our Investment Management, Asset Servicing, Clearing and Treasury Services businesses. We benefited from the improvement in market values and, more importantly, from our relentless focus on generating organic growth with our broad client base. We are also driving our operational excellence initiatives to improve our efficiency and help mitigate the impact on our high margin revenues due to the low interest rate environment and tepid capital markets activity. Our balance sheet and capital ratios strengthened in 2012 even after giving effect to the repurchase of approximately $1.1 billion of our common shares in 2012,” said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon.

“I wish to thank all of my colleagues across the company for their tremendous dedication and ongoing focus on improving our performance, delivering excellence to our clients and creating shareholder value,” added Mr. Hassell.

$BK $XLF