Eight DC banks are still on the Unofficial Troubled Bank List as reported by calculatedriskblog.com. The banks are operating with headquarters (HQ) in the District of Columbia and metropolitan regions of Maryland and Northern Virginia. The official FDIC Troubled Bank List is confidential on the breakdown, but the editors of calculatedriskblog.com provide the unofficial troubled bank list. The list corresponds with the FDIC reporting a decrease in the troubled bank list to 844 from 865 for July – September of 2011, and first quarter decrease in the number of troubled banks in the United States since 2006. FDIC reports an increase in bank profits from $ 23.8 billion in the July-September 2010 to $35.4 billion in the same period of 2011.
The majority of profits were realized with banks with $10 billion in assets and larger as this asset group accounted for $29.8 billion of the $35.4 billion in 3rd quarter profits. The same scenario can be viewed in the Troubled Bank List in the makeup of the DC metropolitan institutions on the list. The eight banks in the DC metropolitan region do follow the national trends of smaller banks. The eight institutions breakdowns are as follows:
- Geography of the 8 institutions include one in DC, 2 in Northern Virginia, and 5 in Maryland including the cities of Bethesda, Rockville, and Bowie, Maryland.
- All eight institutions are all banking institutions with assets less than $10 billion.
- All eight institutions are suffering from Commercial Real Estate Loan portfolio as the primary reason for being on the Troubled Bank List.
In review of the unofficial troubled bank list, Independence Bank of Washington, DC and Colombo Bank of Rockville, Maryland are both on the unofficial troubled bank list. Morton Bender, real estate developer, has ownership stake in both banking institutions. In addition, 40 banks have HQ in the Washington, DC metropolitan area with 8 institutions being on the Unofficial Troubled Bank List. The FDIC reports that 11.4% of all banks in the United States are on the Official Troubled Bank List, but DC has 20% of HQ banking institutions on the Unofficial Troubled Bank List or 8 out of the 40 banks with HQ in the Washington, DC metropolitan area including Northern Virginia and Montgomery and Prince George’s County of Maryland.