4 US banks have bigger unrealized losses than their equity capital; over 50 banks face losses exceeding 50% of their equity capital.

As of the first quarter of this year, several banks have faced significant unrealized losses that exceed their equity capital. Here are some notable examples:

• Union City SVGS Bank: Their unbooked losses equaled a staggering 172.7% of their equity capital.
• Citizens ST Bank: Unbooked losses at this bank reached 121.4% of their equity capital.
• Green Dot Bank: Unrealized losses amounted to 108.6% of their equity capital.
• First America TR: They experienced unbooked losses equivalent to 104% of their equity capital.

These situations highlight the challenges banks are currently facing due to rising interest rates and the impact on their investment portfolios. While most banks can manage these unrealized losses, it’s essential to monitor their financial condition closely to ensure stability and soundness.

50 banks reported unrealized losses on their investment securities portfolios exceeding 50% of their capital equity. This slight increase from the last quarter of 2023 is due to spiking interest rates placing pressure on the financial system. Aggregate unbooked losses at banks across the country rose to $517 billion, up from $478 billion at the end of the previous quarter.