NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a report discussing the financial trends within the U.S. Banking industry in first quarter 2014.

Following the trend of the past few years, the number of institutions on the FDIC’s Problem Institutions list has continued on its downward trend. KBRA’s Troubled Bank List declined by nearly 7% as compared to the prior quarter – falling from 349 to 326 institutions. As expected, while the number troubled institutions has been decreasing, capitalization and asset quality have been simultaneously improving. In the first quarter, a total of 66 reporting banks were classified as undercapitalized – an 11% decline from the prior quarter and a significant decrease from 175 undercapitalized institutions reporting in the first quarter of 2011. Additionally, total bank and thrift failures are falling to near pre-crisis levels, with 24 failures in 2013 – the lowest level since 25 institutions failed in 2008. However, KBRA expects to see a similar number of failures in 2014 as 12 banks failed in the first half of 2014.

To view the report, Quarterly Trends Report for U.S. Banking Institutions – First Quarter 2014, please visit www.kbra.com.

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).