These ratios need to be at least 5% and 10% for a bank or thrift to be considered well-capitalized under regulatory guidelines. They need to be at least 4% and 8% for an institution to be considered adequately capitalized.
For FirstCity, there were other indications of major problems, since the institution's ratio of nonperforming assets to total assets was 20.41% as of Dec. 31. This was the first failed institution during the 2008-2009 crisis for which the FDIC was unable to find a buyer for deposits and branches, with the main reason being that nearly all of FirstCity's deposits had been made through brokers.
Banks with High Levels of Problem Loans
Thirty-three Georgia banks and thrifts had nonperforming asset ratios above 10%, a sign of trouble for most banks. Not surprisingly, TheStreet.com Ratings has assigned nearly all the institutions on this list ratings of D (weak) or below.
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