The iBank Monitor Watch List was developed to provide a reliable source for detecting early warning signs due to delays and inconsistencies encountered in monitoring Public Regulatory Enforcement Actions against banks. 

Ideally, Regulatory Enforcement Actions should be the early warning system, however, there have been several bank failures where none have been issued. Additionally, for many troubled banks which have demonstrated deteriorating trends over several quarters, the issuance of Public Enforcement Actions are not generally forthcoming.

To provide better and more timely information, we monitor bank information to detect any of the following qualifying events: 

  1. Banks or their holding company which have at least one asset quality Public Regulatory Enforcement Action (Supervisory Agreement, Cease and Desist Order, Etc.). While this criteria served us well during the escalation of the banking crisis, it is overstating the number of watch list banks during the last few years since the regulators have been slow to release enforcement actions.
  2. Banks with a Risk Based Capital Ratio less than 10% and a Texas Ratio greater than 70%, or a negative Texas Ratio. Indicating asset quality weaknesses.
  3. Banks with a Risk Based Capital Ratio less than 10%, a ratio of Brokered CD's to Total Deposits of 15% or greater and a Loan to Deposit Ratio of 90% or greater. Indicating a possible liquidity weakness due to the prohibition against soliciting and/or renewing Brokered CD's and/or CDARS deposits.
  4. Banks with a Risk Based Capital Ratio less than 10%, a ratio of Non Deposit Borrowings to Total Assets of 15% or greater and a Loan to Deposit Ratio of 90% or greater. Indicating a possible liquidity weakness due to the possible cancellation of Fed Funds Lines and tighter borrowing restrictions with the Federal Reserve and FHLB. The Federal Reserve and FHLB will likely reduce advance rates on pledged collateral, require physical possession of loan files, or reduce the borrowing base as a result of random loan file audits which may indicate documentation deficiencies.
  5. Banks with a Risk Based Capital Ratio less than 9.00%.Banks with a negative Texas Ratio*, or a Texas Ratio of 100% or more regardless of their Risk Based Capital Ratio. Indicating a possible asset quality weakness.

(*The Texas Ratio is the sum of non performing assets, including loans 90 or more days past due and OREO, divided by the bank's tangible equity plus loan loss reserves. Texas Ratio calculations do not include non performing loans which are government guaranteed.)

Note: You should not rely on these lists in making a determination of the financial health of a bank since circumstances are constantly changing. Further investigation should be made by reading the text of Enforcement Actions and analyzing detailed and current financial information.


Disclaimer: Information used as the basis for analysis, formulating schedules and preparing reports contained in this website is believed to be accurate.  However, you should not rely on information contained in the website in making a determination of the financial condition of financial institutions, since circumstances are constantly changing and source information may be incorrect.  You should make further independent investigation by reading the text of each Regulatory Enforcement Action and analyze detailed and current financial information from each financial institution.  By using this website, you acknowledge the risks inherently associated with research, and release Data Informatics, LLC from any liability arising from any information found to be incorrect.

iBank Monitor - Watch List

Data Informatics, LLC

The iBank Monitor database has been updated with March 31, 2018 Call Report financial information as well as a re-fresh of all new regulatory enforcement actions and terminations. As a result, the iBank Monitor Watch List improved to 84 banks in the most recent quarter from 93 using the previous December 31, 2017 Call Report Data and 93 banks using September 30, 2017 Call Report Data.  The total assets of Watch List banks declined to $21.6 billion from $24.5 billion at December 31, 2017 and $24.7 billion at September 30, 2017. The FDIC's March 31, 2018 quarterly Insured Institutions report mentioned the existence of 92 "Problem" banks with total assets of $56.4 billion which was up significantly from $13.9 billion the previous quarter.  While the FDIC does not identify the individual "Problem" banks, the iBank Monitor's Watch list has trended with the disclosed aggregate metrics of the FDIC's ""Problem" banks; and therefore, has a high probability of containing many of the FDIC's "Problem" banks.

While the iBank Monitor Watch List contains 8 fewer banks than the FDIC's "Problem" bank count, the difference is attributable to regulators' long standing delay in coordinating and terminating enforcement actions for banks and their holding companies. The existence of open/non-terminated enforcement actions against a bank or its holding company are automatic triggers for inclusion on the iBank Monitor Watch List, and we update enforcement actions continuously, not just once a quarter.

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