Is Your Bank One of the 433 in Immediate Danger of Failure? Robert Paisola Reports

Is Your Bank One of the 433 in Immediate Danger of Failure?
 
 Note to Readers: We originally posted this article mid-day on June 9, 2010. Since then, nine of the banks on the list, including three on Andy's Top 10 Banks in Danger of Failure list, have been seized by the FDIC.

Because your hard-earned savings depend on it, we are committed to updating this article and list regularly so that you can have the most timely and relevant information at your fingertips. Please bookmark this page and check back often to see the updated status of the banks on the list.


As the Dow dips below 10,000, it's not just your investments that might be at risk.

Your bank could be, too.

Let's face it: The global economy is still rough. The European debt debacle continues to spread from one country to the next, with no one sure where it will end. Here at home, the recovery is soft at best.

The best way to evaluate the economy is to ignore the mishmash of indicators that are released each day and focus on the one metric that really matters. It's not reported like chain-store sales or the unemployment rate, but it's nevertheless the best gauge of how the economy is doing.

This indicator is called the "net charge-off rate." It is the amount of bank loans that borrowers can't repay, and I think it's the most telling way to measure the nation's actual financial health. Say unemployment drops from 10% to 5%. If people still can't afford to pay back their loans, then the country really hasn't grown stronger, has it?

The charge-off rate is 1.94%, and it has, astonishingly, grown fivefold since the beginning of 2007. In a typical year, a bank should expect to lose about 32 cents for every $100 it lends. Right now, however, banks are losing $1.94 on $100 in loans.

This problem is made worse by bank's deteriorating financial condition. At the beginning of 2007, banks had $1.80 in cash reserves for every dollar of loans that were past due. So even if all those loans went belly up -- and not all past-due loans will -- the banks were more than covered. Today, banks have only about 80 cents for every dollar of problem loans.

Don't kid yourself into thinking that the worst of the financial crisis has passed. For some banks, it's just beginning. Eating all those bad loans is hurting all banks, and many more are going to fail. The Federal Deposit Insurance Corp. (FDIC) says 77% of banks are profitable. But that leaves 23% that are bleeding cash.

The FDIC currently has 775 banks on its "Problem Bank" list. So far this year, 90 banks have failed, about half of which did so in the second quarter. That's a truly frightening number by historical standards: About a third of the banks that have failed since 2000 did so in the first 5 months of 2010.
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The FDIC does not release its problem loans list, it only says how many banks are on it. But using a special ratio that measures a bank's problem loans (the precursor to the loans that are eventually charged off), investors can determine with a high degree of accuracy whether their bank is safe.

It's called the "Texas ratio." It was developed by a financial wizard at  RBC Capital Markets, who used it to correctly predict bank failures in Texas during the 1980s recession, and again in New England in the recession of the early 1990s.

The Texas ratio is determined by dividing the bank's non-performing assets by its tangible common equity and loan-loss reserves. Tangible common is equity capital less goodwill and intangibles. As the ratio approaches 1.0, the bank's risk of failure rises.

Every bank that has failed in the second quarter has had a Texas ratio of greater than 0.90. In fact the average was about 5.0.

Bank failures are announced on Friday afternoons, after the close of the week's business. On June 5, Bloomberg news reported that three banks had failed: TierOne Bank in Nebraska, Arcola Homestead Savings Bank in Illinois and First National of Rosedale, Mississippi.

Frankly, none of these failures should have come as a surprise. After all, Rosedale had the highest Texas ratio of any bank in the country, at 15.78. TierOne's ratio was 4.05, and Arcola's was 0.91.

Investors simply cannot afford not to know if their bank is one of the 433 banks I've identified as being in grave danger of failing. It's crucial that all investors view the list of banks to ensure that their money is safe. And if your bank has a high or even a higher-than-average Texas ratio, then for heaven's sake go in tomorrow and close your accounts. It's always best to get out of Dodge ahead of the posse.

Using this highly accurate barometer of bank health, I've not only reassured myself that my own banks are safe and sound, I've also made a list of the top ten banks most likely to fail. If you bank at one of these institutions or have friends or loved ones who do, please pass this information along to them:

The Top Ten Banks in Danger of Failure as of June 9, 2010 are:


1. USA Bank, Port Chester, NY -- FAILED 7/9/10
2. First Commerce Community Bank, Douglasville, GA
3. SouthWestUSA Bank, Las Vegas, NV
4. High Desert State Bank, Albuquerque, NM -- FAILED 6/25/10
5. Bank of Ellijay, Ellijay, CA
6. Eastern Savings Bank, Hunt Valley, MD
7. ISN Bank, Cherry Hill, NJ
8. Habersham Bank, Clarksville, GA
9. Zions Bank, Salt Lake City, Utah
10. First National, Savannah, GA -- FAILED 6/25/10

I don't want to see any bank go under. But the fact is many have and many more will as the financial system works through its mountain of bad loans. The best way to predict which banks are in hot water is to use the Texas ratio.

One bit of good news is that the 20 publicly traded banks in the S&P 500 have low Texas ratios.
Institution Ticker Texas Ratio
Northern Trust NTRS 0.04
Peoples United PBCT 0.11
Hudson City Bancorp HCBK 0.15
Comerica CMA 0.20
Fifth Third FITB 0.23
Citigroup C 0.25
Keybank KEY 0.27
M&T MT 0.29
First Horizon FHN 0.32
Marshall & Isley MI 0.37
Regions Financial RF 0.37
Zion Bancorp ZION 0.42
J.P. Morgan Chase JPM 0.45
PNC Financial PNC 0.45
BB&T BBT 0.45
Huntington HBAN 0.48
Suntrust STI 0.54
Bank of America BAC 0.55
US Bank USB 0.60
Wells Fargo WFC 0.64

These large banks are strong. Too many others, however, are not. Please scroll down to see the list of 433 U.S. banks in danger of failing immediately, and ensure that your money is safe.

And again, if you have friends or loved ones who bank at one of the listed institutions, please pass this information along to them promptly via the "email" button at the bottom of this page.



Texas Ratio, Name and City and State

2.88 Nexity Bank Birmingham AL
1.47 North Alabama Bank Hazel Green AL
1.38 First Tuskegee Bank Tuskegee AL
1.31 Community Bank and Trust - Alabama Union Springs AL
1.10 EvaBank Eva AL
1.06 First Financial Bank Bessemer AL
0.90 SunSouth Bank Dothan AL
1.71 Metropolitan National Bank Little Rock AR
1.19 First Federal Bank Harrison AR
1.14 Pinnacle Bank Rogers AR
2.98 Copper Star Bank Scottsdale AZ
2.95 Sunrise Bank of Arizona Phoenix AZ
1.92 Legacy Bank Scottsdale AZ
1.73 SunBank, National Association Phoenix AZ
1.20 Central Arizona Bank Casa Grande AZ
1.15 First Arizona Savings, A FSB Scottsdale AZ
2.64 Palm Desert National Bank Palm Desert CA
2.63 First Vietnamese American Bank Westminster CA
2.53 Butte Community Bank Chico CA
1.91 Canyon National Bank Palm Springs CA
1.85 Western Commercial Bank Woodland Hills CA
1.77 Ventura County Business Bank Oxnard CA
1.68 Delta Bank, National Association Manteca CA
1.56 Pacific State Bank Stockton CA
1.37 Preferred Bank Los Angeles CA
1.33 San Luis Trust Bank, FSB San Luis Obispo CA
1.27 Golden Security Bank Rosemead CA
1.25 Borrego Springs Bank, National Association La Mesa CA
1.19 Mission Oaks National Bank Temecula CA
1.18 Sonoma Valley Bank Sonoma CA
1.14 Los Padres Bank Solvang CA
1.07 Professional Business Bank Pasadena CA
1.00 Citizens Bank of Northern California Nevada City CA
2.89 FirsTier Bank Louisville CO
2.32 Rocky Mountain Bank & Trust Florence Florence CO
1.41 Signature Bank Windsor CO
1.19 Park State Bank & Trust Woodland Park CO
1.18 The Pueblo Bank and Trust Company Pueblo CO
1.12 Advantage Bank Loveland CO
1.06 Peoples National Bank Colorado Springs CO
1.01 Pikes Peak National Bank Colorado Springs CO
0.97 Bank of Choice Greeley CO
0.96 Integrity Bank & Trust Monument CO
0.96 Champion Bank Parker CO
2.35 Patriot National Bank Stamford CT
1.44 The Wilton Bank Wilton CT
1.46 Adams National Bank Washington DC
1.30 Independence Federal Savings Bank Washington DC
4.46 Peninsula Bank -- Failed 6/25/10 Englewood FL
3.96 Coastal Community Bank Panama City Beach FL
3.45 Haven Trust Bank Florida Ponte Vedra Beach FL
3.42 Gulf State Community Bank Carrabelle FL
3.19 Olde Cypress Community Bank Clewiston FL
2.71 Turnberry Bank Aventura FL
2.62 Metro Bank of Dade County Miami FL
2.44 Independent National Bank Ocala FL
2.37 Progress Bank of Florida Tampa FL
2.32 The First National Bank of Florida Milton FL
2.22 Horizon Bank Bradenton FL
2.18 First Guaranty Bank and Trust Company of Jacksonville Jacksonville FL
2.14 Community National Bank of Bartow Bartow FL
2.11 Putnam State Bank Palatka FL
2.09 Sterling Bank Lantana FL
2.07 Coastal Bank Merritt Island FL
2.05 Home Federal Bank of Hollywood Hallandale Beach FL
1.92 Bayside Savings Bank Port Saint Joe FL
1.90 The Bank of Miami, National Association Coral Gables FL
1.78 Federal Trust Bank Sanford FL


1.74 Beach Community Bank Fort Walton Beach FL
1.68 Gulf Coast Community Bank Pensacola FL
1.67 First National Bank of Central Florida Winter Park FL
1.64 Cortez Community Bank Brooksville FL
1.63 First Bank of Jacksonville Jacksonville FL
1.55 Ocean Bank Miami FL
1.55 Sunshine State Community Bank Port Orange FL
1.55 Sunrise Bank Cocoa Beach FL
1.54 Security Bank, National Association North Lauderdale FL
1.50 Wakulla Bank Crawfordville FL
1.49 Heritage Bank of North Florida Orange Park FL
1.47 First Commercial Bank of Florida Orlando FL
1.46 First City Bank of Florida Fort Walton Beach FL
1.39 Southern Commerce Bank, National Association Tampa FL
1.37 OptimumBank Plantation FL
1.33 LandMark Bank of Florida Sarasota FL
1.32 EuroBank Coral Gables FL
1.31 Bank of Coral Gables Coral Gables FL
1.30 Vision Bank Panama City FL
1.26 First Peoples Bank Port St. Lucie FL
1.23 BankUnited Miami Lakes FL
1.23 Florida Capital Bank, National Association Jacksonville FL
1.16 Southshore Community Bank Apollo Beach FL
1.14 First National Bank of Crestview Crestview FL
1.13 First East Side Savings Bank Tamarac FL
1.12 First Commercial Bank of Tampa Bay Tampa FL
1.09 Great Florida Bank Coral Gables FL
1.06 The Bank of Commerce Sarasota FL
1.06 Bank of Jackson County Graceville FL
1.04 TransCapital Bank Hallandale Beach FL
1.03 Fidelity Bank of Florida, National Association Merritt Island FL
1.01 Great Eastern Bank of Florida Miami FL
0.94 Central Florida State Bank Belleview FL
0.93 TIB Bank Naples FL
0.93 Independent Banker's Bank of Florida Lake Mary FL
0.91 Community Bank of Manatee Lakewood Ranch FL
0.90 U. S. Century Bank Doral FL
0.90 The Royal Palm Bank of Florida Naples FL
5.67 First Commerce Community Bank Douglasville GA
4.90 Bank of Ellijay Ellijay GA
4.61 Habersham Bank Clarkesville GA
4.54 First National Bank -- Failed 6/25/10 Savannah GA
4.18 North Georgia Bank Watkinsville GA
4.11 Crescent Bank and Trust Company Jasper GA
4.04 Chestatee State Bank Dawsonville GA
3.80 Montgomery Bank & Trust Ailey GA
3.80 High Trust Bank Stockbridge GA
3.68 The First State Bank Stockbridge GA
3.57 American Trust Bank Roswell GA
3.52 Security Exchange Bank Marietta GA
3.49 The Gordon Bank Gordon GA
3.37 Douglas County Bank Douglasville GA
3.30 Northwest Bank & Trust Acworth GA
3.14 McIntosh State Bank Jackson GA
2.90 First Cherokee State Bank Woodstock GA
2.83 Mountain Heritage Bank Clayton GA
2.64 The Park Avenue Bank Valdosta GA
2.60 Enterprise Banking Company Mcdonough GA
2.48 Darby Bank & Trust Co. Vidalia GA
2.46 Appalachian Community Bank, F.S.B. McCaysville GA
2.43 Gwinnett Community Bank Duluth GA
2.42 The Peoples Bank Winder GA
2.42 Atlantic Southern Bank Macon GA
2.32 Hometown Community Bank Braselton GA
2.32 The Peoples Bank Covington GA
2.30 Sunrise Bank of Atlanta Atlanta GA
2.16 Piedmont Community Bank Gray GA
2.03 Oglethorpe Bank Brunswick GA
1.93 Providence Bank Alpharetta GA
1.90 CreekSide Bank Woodstock GA
1.84 Community Bank and Trust - West Georgia Lagrange GA
1.82 Citizens Bank of Effingham Springfield GA
1.77 United Americas Bank, National Association Atlanta GA
1.75 Patriot Bank of Georgia Cumming GA
1.72 WestSide Bank Hiram GA
1.70 Farmers & Merchants Bank Lakeland GA
1.69 Peoples Bank & Trust Buford GA
1.65 Northside Bank Adairsville GA
1.64 PlantersFIRST Cordele GA
1.64 State Bank and Trust Company Macon GA
1.60 Decatur First Bank Decatur GA
1.59 First Citizens Bank of Georgia Dawsonville GA
1.52 Community & Southern Bank Carrollton GA
1.51 Community Capital Bank Jonesboro GA
1.50 Georgia Trust Bank Buford GA
1.49 The First National Bank of Barnesville Barnesville GA
1.48 Heritage Bank Jonesboro GA
1.43 Legacy State Bank Loganville GA
1.41 Central Bank of Georgia Ellaville GA
1.41 Capitol City Bank & Trust Company Atlanta GA
1.39 First Georgia Banking Company Franklin GA
1.39 Bartow County Bank Cartersville GA
1.37 Citizens State Bank Kingsland GA
1.37 New Horizons Bank East Ellijay GA
1.37 CharterBank West Point GA
1.37 Community Bank of Rockmart Rockmart GA
1.28 Eastside Commercial Bank Conyers GA
1.28 Bank of Newington Newington GA
1.25 One Georgia Bank Atlanta GA
1.24 Georgia Heritage Bank Dallas GA
1.22 The Farmers Bank Forsyth GA
1.21 Tifton Banking Company Tifton GA
1.12 Jasper Banking Company Jasper GA
1.11 The Piedmont Bank Lawrenceville GA
1.09 Covenant Bank & Trust Rock Spring GA
1.08 Frontier Bank Lagrange GA
1.07 First Covenant Bank Norcross GA
1.05 First National Bank of Griffin Griffin GA
1.04 The First National Bank of Chatsworth Chatsworth GA
1.01 First State Bank Wrens GA
0.98 Northwest Georgia Bank Ringgold GA
0.97 The Patterson Bank Patterson GA
0.96 Farmers & Merchants Bank Statesboro GA
0.95 Community Bank of the South Smyrna GA
0.94 Bank of North Georgia Alpharetta GA
0.93 PrimeSouth Bank Blackshear GA
0.92 Global Commerce Bank Doraville GA
0.92 Signature Bank of Georgia Sandy Springs GA
0.90 CornerstoneBank Atlanta GA
1.10 Central Pacific Bank Honolulu HI
2.24 Polk County Bank Johnston IA
1.38 State Central Bank Keokuk IA
1.19 VisionBank of Iowa West Des Moines IA
1.18 Patriot Bank Brooklyn IA
1.18 First Bank West Des Moines IA
1.10 First National Bank Midwest Oskaloosa IA
1.03 Idaho Banking Company Boise ID
0.98 Syringa Bank Boise ID
4.59 Ravenswood Bank Chicago IL
4.00 Family Federal Savings of Illinois Cicero IL
3.71 Builders Bank Chicago IL
3.47 First Suburban National Bank Maywood IL
3.16 ShoreBank Chicago IL
2.97 Palos Bank and Trust Company Palos Heights IL
2.63 Valley Community Bank St. Charles IL
2.57 The Bank of Commerce Wood Dale IL
2.45 American Metro Bank Chicago IL
2.35 First National Bank of Brookfield Brookfield IL
2.31 Western Springs National Bank and Trust Western Springs IL
2.05 CenTrust Bank, National Association Northbrook IL
1.73 Community First Bank - Chicago Chicago IL
1.68 Second Federal Savings and Loan Association of Chicago Chicago IL
1.64 First Bank and Trust Company of Illinois Palatine IL
1.38 The First Commercial Bank Chicago IL
1.37 Edgebrook Bank Chicago IL
1.36 Baytree National Bank & Trust Company Lake Forest IL
1.23 Chicago Community Bank Chicago IL
1.23 Oxford Bank & Trust Oak Brook IL
1.21 American Enterprise Bank Buffalo Grove IL
1.20 FirstSecure Bank and Trust Co. Palos Hills IL
1.17 First Chicago Bank & Trust Itasca IL
1.16 PNA Bank Chicago IL
1.15 First Choice Bank Geneva IL
1.12 Archer Bank Chicago IL
1.06 Norstates Bank Waukegan IL
1.05 Charter National Bank and Trust Hoffman Estates IL
1.04 DuPage National Bank West Chicago IL
1.02 All American Bank Des Plaines IL
1.00 AztecAmerica Bank Berwyn IL
0.99 Inland Bank and Trust Oak Brook IL
0.99 Union National Bank and Trust Company of Elgin Elgin IL
0.95 First Security Trust and Savings Bank Elmwood Park IL
0.94 Downers Grove National Bank Westmont IL
0.90 The Elgin State Bank Elgin IL
0.90 Community Bank of Oak Park River Forest Oak Park IL
1.06 Integra Bank National Association Evansville IN
2.47 Hillcrest Bank Overland Park KS
2.46 The First National Bank of Olathe Olathe KS
1.64 Security Savings Bank, F.S.B. Olathe KS
1.20 Armed Forces Bank, National Association Fort Leavenworth KS
1.18 Roxbury Bank Roxbury KS
1.17 1st Financial Bank Overland Park KS
1.12 Heritage Bank Topeka KS
0.96 First National Bank & Trust Company in Larned Larned KS
0.93 Alliant Bank Sedgwick KS
1.36 Citizens Commerce National Bank Versailles KY
0.99 Citizens Union Bank of Shelbyville Shelbyville KY
2.09 Central Progressive Bank Lacombe LA
1.43 Iberiabank Lafayette LA
1.13 First National Bank USA Boutte LA
1.15 Stoneham Savings Bank Stoneham MA
4.86 Eastern Savings Bank, FSB Hunt Valley MD
2.22 K Bank -- Failed 7/9/10 Randallstown MD
2.01 Bay National Bank Baltimore MD
1.40 Colombo Bank Rockville MD
1.24 CFG Community Bank Baltimore MD
1.20 Bank of the Eastern Shore Cambridge MD
1.13 Hull Federal Savings Bank Baltimore MD
1.03 Border Trust Company Augusta ME
2.43 Mainstreet Savings Bank, FSB Hastings MI
2.16 Flagstar Bank, FSB Troy MI
1.82 Peoples State Bank Hamtramck MI
1.57 Michigan Commerce Bank Ann Arbor MI
1.52 First National Bank in Howell Howell MI
1.36 Oxford Bank Oxford MI
1.31 Fidelity Bank Dearborn MI
1.19 Clarkston State Bank Clarkston MI
1.16 Select Bank Grand Rapids MI
1.09 Capitol National Bank Lansing MI
0.93 West Michigan Community Bank Hudsonville MI
3.20 Community Security Bank New Prague MN
2.52 Home Savings of America Little Falls MN
2.28 The RiverBank Wyoming MN
2.25 First Resource Bank Savage MN
1.67 Premier Bank Minnesota Farmington MN
1.61 Riverland Bank Jordan MN
1.61 State Bank of Cokato Cokato MN
1.56 Community National Bank Lino Lakes MN
1.46 Rosemount National Bank Rosemount MN
1.41 BankCherokee Saint Paul MN
1.41 Premier Bank Maplewood MN
1.35 Eagle Community Bank Maple Grove MN
1.31 Inter Savings Bank, fsb D/B/A Interbank Maple Grove MN
1.26 Park State Bank Duluth MN
1.24 Americana Community Bank Sleepy Eye MN
1.23 Premier Bank Rochester Rochester MN
1.22 First Commercial Bank Bloomington MN
1.21 1st Regents Bank Andover MN
1.18 State Bank of Delano Delano MN
1.17 Minnwest Bank Metro Eagan MN
1.00 Maple Bank Champlin MN
0.98 BankWest Rockford MN
0.95 Great Northern Bank Saint Michael MN
0.94 Highland Bank Saint Michael MN
0.93 Boundary Waters Bank Ely MN
0.93 Patriot Bank Minnesota Wyoming MN
0.91 Lake Country Community Bank Morristown MN
0.90 Lakeview Bank Lakeville MN
3.26 Premier Bank Jefferson City MO
2.45 Westbridge Bank and Trust Chesterfield MO
1.86 Sun Security Bank Ellington MO
1.77 Bank Midwest, National Association Kansas City MO
1.48 The Bank of Macks Creek Macks Creek MO
1.37 Community Bank of the Ozarks Sunrise Beach MO
1.29 Citizens National Bank of Springfield Springfield MO
1.25 Meramec Valley Bank Valley Park MO
1.22 Truman Bank St. Louis MO
1.21 1st Advantage Bank Saint Peters MO
1.17 Village Bank Springfield MO
1.13 Heartland Bank Saint Louis MO
0.96 Bank of Belton Belton MO
0.93 Patriots Bank Liberty MO
1.08 Heritage Banking Group Carthage MS
1.29 American Bank Bozeman MT
1.22 Bank of Bozeman Bozeman MT
1.22 Freedom Bank Columbia Falls MT
1.19 First Citizens Bank of Polson, National Association Polson MT
0.93 Bank of The Rockies, National Association White Sulphur Springs MT
0.90 Mountain West Bank, National Association Helena MT
3.13 Pisgah Community Bank Asheville NC
2.52 Blue Ridge Savings Bank, Inc. Asheville NC
1.33 Nantahala Bank & Trust Company Franklin NC
1.26 Communityone Bank, National Association Asheboro NC
1.20 Security Savings Bank, SSB Southport NC
1.13 The Bank of Currituck Moyock NC
1.12 The Bank of Asheville Asheville NC
1.12 Cornerstone Bank Wilson NC
1.09 Bank of Granite Granite Falls NC
0.98 Waccamaw Bank Whiteville NC
0.99 Lincoln FSB of Nebraska Lincoln NE
0.99 Thayer County Bank Hebron NE
0.99 FirsTier Bank Kimball NE
4.66 ISN Bank Cherry Hill NJ
2.17 Metlife Bank, National Association Bridgewater NJ
0.99 Amboy Bank Old Bridge NJ
5.11 High Desert State Bank -- Failed 6/25/10 Albuquerque NM
1.37 First Community Bank Taos NM
1.25 Sunrise Bank of Albuquerque Albuquerque NM
1.13 Bank 1st Albuquerque NM
5.19 SouthwestUSA Bank Las Vegas NV
3.52 Nevada Security Bank -- Failed 6/18/2010 Reno NV
2.56 Bank of Las Vegas Las Vegas NV
2.53 1st Commerce Bank North Las Vegas NV
1.90 Nevada Commerce Bank Las Vegas NV
1.01 Bank of North Las Vegas North Las Vegas NV
0.95 Bank of George Las Vegas NV
10.78 USA Bank -- Failed 7/9/10 Port Chester NY
1.57 Community Federal Savings Bank Woodhaven NY
1.25 First Central Savings Bank Glen Cove NY
1.21 Emigrant Savings Bank - Long Island Westbury NY
1.04 Emigrant Savings Bank - Brooklyn/Queens Brooklyn NY
1.00 Bank of Smithtown Smithtown NY
2.96 Bramble Savings Bank Milford OH
1.42 The Ohio State Bank Marion OH
1.33 Columbia Savings Bank Cincinnati OH
1.22 United Midwest Savings Bank De Graff OH
0.98 Park View Federal Savings Bank Solon OH
0.96 Benchmark Bank Gahanna OH


2.61 Home National Bank -- Failed 7/9/10 Blackwell OK
1.28 Liberty Federal Savings Bank Enid OK
1.04 The Citizens Bank of Edmond Edmond OK
1.00 The Exchange Bank Skiatook OK
0.91 First Texoma National Bank Durant OK
1.91 Albina Community Bank Portland OR
1.62 MBank Gresham OR
1.23 Bank of the Cascades Bend OR
1.16 LibertyBank Eugene OR
1.02 Home Valley Bank Cave Junction OR
0.97 Pacific West Bank West Linn OR
1.84 Earthstar Bank Southampton PA
1.58 First CornerStone Bank King Of Prussia PA
1.53 Allegiance Bank of North America Bala Cynwyd PA
1.32 Croydon Savings Bank Croydon PA
1.18 Public Savings Bank Huntingdon Valle PA
0.96 Nextier Bank, National Association Evans City PA
1.67 Doral Bank San Juan PR
3.85 First National Bank of the South Spartanburg SC
2.51 Woodlands Bank Bluffton SC
2.10 Williamsburg First National Bank Kingstree SC
1.66 Plantation Federal Bank Pawleys Island SC
1.65 CommunitySouth Bank and Trust Easley SC
1.60 Carolina Federal Savings Bank Charleston SC
1.52 The Palmetto Bank Laurens SC
1.46 First South Bank Spartanburg SC
1.42 BankMeridian, N.A. Columbia SC
1.11 South Carolina Community Bank Columbia SC
1.46 First Midwest Bank Centerville SD
3.15 American Patriot Bank Greeneville TN
1.40 Sevier County Bank Sevierville TN
1.02 Community South Bank Parsons TN
1.01 Mountain National Bank Sevierville TN
1.00 Bank of Bartlett Bartlett TN
0.95 Tennessee State Bank Pigeon Forge TN
0.94 Bank of Lincoln County Fayetteville TN
1.70 Jefferson Bank Dallas TX
1.51 Prosper Bank Prosper TX
1.43 United Central Bank Garland TX
1.35 Equity Bank,SSB Dallas TX
1.31 Colonial Savings, F.A. Fort Worth TX
1.12 United Community Bank, National Association Highland Village TX
0.94 Inter National Bank Mcallen TX
0.93 Town Center Bank Coppell TX
2.39 Gunnison Valley Bank Gunnison UT
2.08 Western Community Bank Orem UT
1.40 The Village Bank Saint George UT
1.23 First Utah Bank Salt Lake City UT
1.18 SunFirst Bank Saint George UT
1.07 Holladay Bank & Trust Salt Lake City UT
1.19 Millennium Bank, National Association Sterling VA
1.10 The Peoples Bank Ewing VA
0.96 Consolidated Bank and Trust Company Richmond VA
3.13 Washington First International Bank -- Failed 6/11/2010 Seattle WA
2.58 HomeStreet Bank Seattle WA
2.58 Seattle Bank Seattle WA
2.47 North County Bank Arlington WA
2.33 First Sound Bank Seattle WA
2.13 Shoreline Bank Shoreline WA
1.98 Regal Financial Bank Seattle WA
1.78 AmericanWest Bank Spokane WA
1.72 The Cowlitz Bank Longview WA
1.56 Viking Bank Seattle WA
1.46 Sterling Savings Bank Spokane WA
1.33 The Bank of Washington Lynnwood WA
1.20 First Heritage Bank Snohomish WA
1.16 Mountain Pacific Bank Everett WA
1.12 Business Bank Burlington WA
1.07 Bank of Whitman Colfax WA
1.04 Prime Pacific Bank, National Association Lynnwood WA
0.99 Eastside Commercial Bank, National Association Bellevue WA
0.90 Cascade Bank Everett WA
3.10 Maritime Savings Bank West Allis WI
1.40 Citizens State Bank Hudson WI
1.34 First Banking Center Burlington WI
1.20 Badger State Bank Cassville WI
1.18 Southport Bank Kenosha WI
1.17 AnchorBank Madison WI
1.13 Security State Bank Iron River WI
1.04 Eagle Valley Bank, National Association St. Croix Falls WI

Legal Disclaimer:

Robert Paisola, as an individual nor does Western Capital International or it's affiliate organizations does not own shares of any security mentioned in this article No information in this article should be construed as fact, and you are encouraged to do your own due diligence.

About The Author:
http://ezinearticles.com/?expert_bio=Robert_Paisola

Live from First Business Morning News, Mortgage Brokers Gone Wild, Posted by Robert Paisola

"Refi-Bust: Mortgage Brokers Gone Wild" ex-mortgage broker David Lawrence Mortgage Fraud, investigations, David Lawrence, First Business Morning News



http://link.brightcove.com/services/link/bcpid464121043/bclid1243715034/bctid1467274188

Another Federal Indictment for Mortgage Fraud Live from KCRA, Robert Paisola Reports

A KSL 5 Eyewitness News HD Investigation, Posted by Robert Paisola

It's a hot new trend. They thought they were getting a good deal on a new home. Now they're fighting to keep their homes. And it's not their fault. They made the payments. So where did their money go?
KSL 5 investigative reporter Debbie Dujanovic follows the paper trail and tracks down the company... tonight at 10 on the KSL 5 Eyewitness News HD.

Live From NPR- Your Mortgage...Just Walk Away, With a Smile! Robert Paisola Reports

www.YouWalkAway.com is a Western Capital Approved Site


http://abcnews.go.com/Video/playerIndex?id=4220208&affil=wxyz


The Web site for You Walk Away is cheery and reassuring. There's a photo of a happy family in a park, smiling. Another family, also smiling, is packing up boxes.

"Are you stressed out about mortgage payments?" asks the site rhetorically. "Is foreclosure right for you?" it queries, but doesn't wait for an answer. "You are not alone — over 2.9 million homes have foreclosed in the last three years," it says. The not-so-subtle message: Foreclosure need not be a shameful, life-ruining experience. In fact, the company will gladly hold your hand through the foreclosure process—for a fee, of course.

Foreclosure, we're told, is a last resort, an option that no responsible homeowner would ever choose. But some distressed homeowners — no one knows exactly how many — are doing just that. They're voluntarily walking away from their mortgages, engaging in a practice the mortgage industry calls "ruthless default."

But is it really ruthless — or just good businesses sense? Some economists argue it's definitely the latter.

Sometimes, they say, walking away from your mortgage makes economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth. In those cases, "voluntary foreclosures are not by themselves evidence of a newfound irresponsibility on Americans' part," says Nicole Gelinas, writing in The Wall Street Journal .

Separating the economics of foreclosure from the morality (and the stigma) is not easy, though.

"We need a culture of responsible consumers and homeowners," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, echoing a deep-seated American belief that one should always honor financial obligations.

The current housing crisis is different, argue some economists: Since some financial institutions sold these loans in a deceptive manner — for example, by approving people for loans they couldn't really afford — then why should homeowners feel obliged to honor their commitments?

The Virtues of Self-Interest

Most homeowners avoid foreclosure for selfish, and not necessarily moral, reasons. Foreclosure leaves a large black mark on a homeowner's credit rating. It might be as long as 10 years before they can qualify for another mortgage.

But Gelinas — a financial analyst and contributing editor of City Journal — argues that if enough people walk away from their homes, then banks won't blacklist all of them.

"Many walkers are going to want to buy houses again some day; and when they do, lenders are going to want to make money lending them money to do so (hopefully requiring a good down payment)," she says.

One thing that is certain: Foreclosures are on the rise. The Mortgage Bankers Association estimates that roughly 900,000 Americans were in the foreclosure process as of Sept. 30, 2007 — the most recent data available. That's an increase of 72 percent from the same period a year ago. Cities in California, Ohio, Florida and Michigan posted the highest foreclosure rates in the U.S., according to RealtyTrac, a private firm.

Traditionally, most people who foreclose on their homes do so because they lost their jobs or were hit with unexpected medical expenses. But the subprime mortgage crisis is different. Seven out of 10 people foreclosing on their homes are healthy and gainfully employed, according to John Taylor, president of the National Community Reinvestment Coalition. They simply can't afford to make their monthly payments.

Helping Others Walk Away

The spurt in foreclosures has spawned a cottage industry of firms who smell a business opportunity amid the misery. You Walk Away is getting the most attention, with some 25,000 daily hits to its Web site. (The firm won't disclose how many customers it has.)

For a fee of $995, the company offers services such as a "protection kit." For instance, they'll send a letter that "stops lenders from harassing the homeowner." They'll also put distressed homeowners in touch with a lawyer and an accountant to discuss their options. They'll advise people in the midst of foreclosure how long they can legally live in their homes, tempting people with the prospect that, "You WILL be able to stay in your home for up to 8 months or more without having to pay anything to your lender!"

Chad Ruyle, the company's co-founder, says they are not encouraging people to pursue foreclosure but merely helping them through the process once they have made that decision.

"We're not causing the foreclosure problem," he says. "The problem was already there." Or, as his business partner Jon Maddux puts it, "You can't blame a divorce lawyer for a divorce."

Red Flags

Firms like You Walk Away, though, have raised red flags with credit counselor and consumer watchdogs. Ellen Schloemer, director of research at the Center for Responsible Lending, says borrowers would be better off hiring their own attorneys and accountants, rather than relying on those provided by You Walk Away.

"Just look at the picture [on the company's Web site]," Schloemer says. "It shows people enjoying a day in the park. But foreclosure is no day in the park."

It takes a decade to recover from a foreclosure, she says, and there's not much anyone can do about that. The company, she says, paints a misleading picture of the foreclosure process.

"The real solution is to help people before they're forced into foreclosure," she says.

John Taylor, of the National Community Reinvestment Coalition, says he's concerned that the company might not help customers explore all of their alternatives before going into foreclosure.

"I would rather see people who are facing foreclosure fighting to keep their home, and keep it as long as possible, because help is on the way," he says.

On Tuesday, in fact, the Bush administration announced a new initiative aimed at helping homeowners about to lose their homes. For qualified homeowners, it will freeze the foreclosure process for 30 days. Dubbed "Project Lifeline," the new program will be available to people who have taken out all types of mortgages, not just the high-cost subprime loans that have been the focus of previous relief efforts.

Those efforts, of course, are about avoiding foreclosures, not facilitating them.

"Walking away from one's home should be the absolute last resort," says Gail Cunningham of the National Foundation for Credit Counseling. "However desperate a situation might become for a homeowner, that does not relieve us of our responsibilities."

But there is one category of homeowner, she says, where foreclosure does make sense: people who bought their homes "with their hearts and not their heads."

"For people who may never be able to afford their home, then walking away is a viable option," she says. "If long term, you're not going to be able to sustain the mortgage payment, then you're fooling yourself and should get out of that situation and move on to life after foreclosure."

++++++++++++

California's housing market may be entering a scarier phase: the
point at which homeowners walk because the house isn't
appreciating, not because they can't afford it. Banks are worried.
A Federal Reserve survey in January 2008 found that loan officers
"are concerned with borrowers' reduced motivation to retain
possession of their properties."
And Calculated Risk, a blog, posted a quote from Wachovia Bank's
January 2008 conference call: "One of the challenges is... a lot of
these current losses have been coming out of California... from people that have otherwise
had the capacity to pay, but have basically just decided not to because they feel like they've
lost equity, value in their properties, and ... we're just going to have to see how the patterns
unfold here."
Bank of America CEO Kenneth Lewis said, "There's been a change in social attitudes toward
default ... We're seeing people who are current on their credit cards but are defaulting on
their mortgages ... I'm astonished that people would walk away from their homes."
If income indicates ability to pay, down payment is an incentive to pay - skin in the game.
In California, lenders are generally barred from getting money from a defaulting borrower.
The lender gets the house and that's it, even if the borrower has $1 million in the bank. Only
judicial foreclosure allows the lender to get the borrower's other assets, but it's slow,
expensive and encourages a defense of loan origination fraud. Buying a house with little
down is like having your cake and eating it, too. If the house appreciates, you keep the
riches; if it doesn't, you walk and lose only what you put down, often nothing. It's wrong to
insure such losses with taxpayer money.
Laws limiting investor liability are everywhere. If you own stock in a company that goes
bankrupt, you don't feel a moral obligation to pay the company's creditors, because the law
limits your liability. But the government doesn't guarantee those creditors' losses - and it
shouldn't do so in the housing market, either.
Visit www.uwalkaway.com, a company that sells kits explaining a homeowner's right to
walk if the house isn't a good deal anymore. And "60 Minutes" recently featured a couple
who explained they could afford their mortgage payments, but the house was "worth less,"
so why pay?
Who loses if the trend grows? The biggest loser will be mortgage bond investors, and next is
originating banks and investment banks (because investors will try to sue for fraud and
misrepresentation). Homeowners who put zero or 5 percent down lose little more than
outsized hopes of future riches. And as uwalkaway.com notes, eight months of "free rent"
will help them feel better.
Now that Congress has passed higher loan limits for Fannie Mae, Freddie Mac and the
Federal Housing Administration, Americans will lose because investors facing losses can get
paid by Fannie, Freddie and FHA.
In the future, Congress should require California to allow lenders to garnish wages of
affluent borrowers who walk away from their homes. It's dishonest to have it both ways: (1)
federal tax money backstops investor and bank losses when homeowners walk away from
homes, and (2) California law allows homeowners to walk away without liability - even if
they have money to pay. It's not that the California statute is bad alone; it's that it's wrong
for federal taxes to guarantee huge loans without homeowners guaranteeing those loans too.
Gov. Arnold Schwarzenegger wrote last Monday, "Unfortunately, the California families most
hurt (by inability to get affordable mortgage credit) are in lower- and moderate-income
brackets." Then, he magically ties this to raising the loan caps to $729,750. But 2006
California median family income was $64,563. This isn't an anti-poverty plan.
Even Marin, California's top 2006 county for median family income, was $99,713 - too low
to benefit from the higher caps. I see how politicians could confuse median family income,
because they don't hang out at places where they'd meet a median income earner.
The new increase in the loan caps is nothing more than a handout. It's welfare for the
wealthy - a group that tirelessly touts free market principles. Raising the caps is morally
wrong, and it's also bad policy.
Sean Olender is a San Mateo attorney.

RICH DAD Robert Kiyosaki talks with Casey Serin on Mortgage Fraud, By Robert Paisola

Utah's securities chief is resigning under cloud, Posted by Robert Paisola

The head of the state Division of Securities is resigning, following allegations of mismanagement and misuse of authority and a continuing state audit.
Division director Wayne Klein said Monday that he has submitted his resignation to his state Commerce Department chief Francine Giani. He plans to step down at the end of this month.

Klein's decision come amid controversy surrounding a case his agency investigated involving four employees with First Western Advisors Inc., a stock brokerage and investment firm.

Rep. Jim Bird, R-West Jordan, was concerned about the handling of the First Western case and requested the audit late last year. The Legislative Auditor General's Office began the audit in early November and plans to complete its work by the end of the legislative session.

"The division does important work," Giani said Tuesday. "Unfortunately, sometimes they do investigate people that are known by people that can call for audits."

Klein said Tuesday that his resignation would take pressure off the division so that its important work can go forward without him being a lightning rod for criticism. The controversy traces back to last March, when the Utah Division of Securities alleged that First Western Advisors, along with two current and two former brokers, were part of securities fraud involving nine Utahns who invested more than $20.6 million.

The division had filed a petition to revoke and bar licenses and impose fines against First Western and brokers Gary W. Teran, Carl A. Page, David A. Russon and Brian G. Kasteler. Teran is the company's president, and Russon and Kasteler are former First Western brokers.

Specifically, the division said the agents invested in Class B shares, which have higher costs and higher commissions for the agents than Class A shares of the same fund. However, some clients thought they owned Class A shares based upon Morningstar "Snapshot" reports that the agents sent, reflecting mutual fund performance for Class A shares, the division said.

The division also said that the nine investors testified to the U.S. Securities and Exchange Commission, but the agents tried to contradict their statements by having them sign "mutual-fund disclosure statements" and "declarations" suggesting the investors were always aware of the brokers' actions.

The filing also charged First Western with failing to maintain accurate books and records and failing to supervise the activities of the four brokers. The division accused the firm of violating the Utah Securities Act, saying First Western failed to disclose material facts to clients, recommended unsuitable investments, gave false account information to clients and attempted to change client testimony to the SEC.

The division later dismissed the fraud claims after the men signed settlement agreements with orders to comply with state requirements of the Utah Uniform Securities Act. The division also issued news releases expressing regret for any potential harm their allegations may have caused to First Western's business.

Giani and Klein said the division never claimed First Western bilked clients out of money, but the division did raise questions about the firm's practices and fee structures, which were eventually addressed and resolved between the division and the company in the settlement agreements.

In the consent order, the company also agreed to change its policies in exchange for the agency dismissing fraud charges.

Klein said the division issued the apology because of the potential damage to the company's reputation caused by media reports stating First Western had de-frauded clients, which he said the division never claimed.

Klein also came under fire for a 2005 case involving broker Richard Mack. The division filed a petition against Mack that accused him of failing to adequately supervise a broker who was selling unregistered securities. A judge ruled the case should be dismissed, but the division is appealing that ruling to the Utah Supreme Court.

The criticism regarding Klein came to the forefront during a hearing last week before the House Business and Labor Committee, when four people testified about his perceived failings or the unfair practices within the agency, he said. During the committee meeting, Bird introduced HB83, which would give the state Securities Advisory Board, which oversees the division, the ability to decide which cases to pursue.

The board is made up of independent advisers and now only provides recommendations on what fines the division should levy.

Bird has been a strong critic of Klein's agency and, according to Giani, was a former business associate of Mack.

Klein said the controversy, combined with the legislative audit, has made him feel it would be better for the division if he leaves, to avoid further conflict.

"It just seemed best to for me to step aside before the audit comes out and they make recommendations," he said. "Then someone can come in with a clean slate and implement the recommendations without the baggage that I bring."

Commerce director Giani hired Klein in October 2005. A lawyer with two decades of experience in securities law, he had served in the Utah Attorney General's Office since 1996.

Giani said she considers Klein to be one of the most knowledgeable, competent, and highly regarded people in the field of securities law, and she is sad to see him step down from his post. She attributed much of the controversy to "mischaracterization over what has occurred." But she said she will abide by any and all of the recommendations that come from the auditor's office.

Giani also said she is cautiously optimistic Klein's work and reputation will be vindicated by the audit. "That's my hope," she said.



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E-mail: jlee@desnews.com

Families Facing Foreclosure from Fraud, Posted by Robert Paisola