2023 by the Numbers

$549 Billion

That’s the asset total from five bank failures in the U.S. in 2023. Silicon Valley Bank, Signature Bank, and First Republic Bank all collapsed within two months of each other. A bank run sparked the first failure (Silicon Valley Bank) in early March, due in part to concerns of uninsured deposits.

Subscribers can use Data ID: KCALLUIDTD in Excel to calculate a lender’s uninsured deposits to total deposits.

943

The number of banks to have their KFI Score lowered by KBRA Financial Intelligence (KFI) in 2023. Declines outpaced increases on an almost 2:1 basis for the largest overall decrease in scores since the onset of the COVID pandemic in 2020.

Subscribers can use the KFI Score Insights Tool to see KFI Score trends going back to 2014.

$1.03 Trillion

Total credit card balance held by U.S. consumers as of 2Q 2023—a record high, according to bank Call Report data compiled by KFI. Credit card balances have jumped almost 30% in two years amid higher inflation, while delinquency rates are starting to tick up.

Subscribers can use Data ID: KCALLCCL to calculate outstanding credit card loans and KCALLCCLPD for delinquent credit card loans.

6

The number of quarters that banks reported declining deposits through the third quarter, according to FDIC data. Deposits dropped a record $472 billion or 2.5% in 1Q 2023, the largest decrease since the FDIC began collecting such data in 1984.

Subscribers can use Data ID: KCALLTD to look up a bank’s total deposits.

$684 Billion

The amount banks’ securities portfolios were underwater as of 3Q, according to the FDIC. This may turn out to be the high-water mark for losses after the Federal Reserve signaled three quarter-point rate cuts next year.

Subscribers can use the Peer Securities Composition template to compare banks’ available-for-sale and held-to-maturity securities.

5

The number of banks that failed in 2023. Despite the record failures earlier in the year, there were only five lenders taken over by the FDIC as of December 20. The latest failure was Citizens Bank in Sac City, Iowa, (KFI Score: E) which closed on November 3.

Track struggling lenders with the KFI Insights Tool to sort by KFI Score.

1.65%

Third-quarter commercial real estate (CRE) delinquency rate for banks with at least $100 billion in assets. Properties where owners charge rent, or nonfarm, nonresidential loans, are driving the stress.

Subscribers can perform their own delinquency analysis using our custom-built templates.

Product Upgrades

In 2023, we released several product upgrades including:

• New Excel Templates: The templates, which compare deposit mix, securities portfolios, loan concentration, and more, allow clients to monitor counterparty risk in response to the banking crisis in early 2023.

• Expanded Regulatory Identifiers: Users can locate lenders across regulatory identifiers, including FDIC certificate numbers, NCUA credit union charter numbers, and the SEC’s CIK identifiers for publicly traded financial institutions.

• KFI Score Insights Tool: Quickly identify the biggest movers in KFI Scores, non-performing assets, ROAA, and other performance metrics.

Recent M&A Transactions

Equity Bancshares (KFI Score: B+), the $5 billion holding company in Wichita, Kansas, agreed on December 6 to buy Bank of Kirksville (KFI Score: A) and its holding company Rockhold Bancorp. for about $44 million. Equity Bank will add about $406 million in assets from the Kirksville, Missouri-based lender in the deal that’s expected to close in 1Q 2024.

Maine Community Bank, (KFI Score: B+) and Gorham Savings Bank, (KFI Score: B) agreed on December 7 to merge, creating an almost $2.7 billion lender in the deal that’s expected to close in 3Q 2024.

Follow Van Hesser’s Podcast and Insights

Follow KBRA’s weekly podcast and newsletter 3 Things in Credit, hosted by our Chief Strategist, Van Hesser. From the December 15 episode:

"The Great Monetary Pivot. – Be honest. Did you see this coming? For what it’s worth, in more than 30 years of looking at markets, I cannot think of a more dramatic pivot in markets on not a lot of new news."