This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Illinois Tops Undercapitalized Bank List

States that have already taken the brunt of the pain due to the rash of bank failures since the beginning of 2008 look to have more trouble on the horizon.

Based on early regulatory data for 96% of the nation's approximately 8,500 banks, Illinois, Georgia and California have more than half of the 78 institutions considered undercapitalized by regulatory capital guidelines as of March 31. Georgia leads all states with 11 bank and thrift failures since the start of 2008, followed by California with nine and Illinois, tied with Florida and Nevada with four.

In comparison, 60 banks and thrifts reported being undercapitalized per ordinary regulatory guidelines as of Dec. 31. Since 22 of those institutions have failed so far, it's clear that being undercapitalized is a good indicator of an institution's risk of failure.

The preliminary list of undercapitalized banks for the first quarter doesn't include savings and loan institutions, since data was available for only 10% of the approximately 800 U.S. thrifts.

The table below lists the 78 undercapitalized banks, in order of ascending Tier 1 leverage ratio:

Undercapitalized Banks - 3/31/09 -
Preliminary Regulatory Data ($Mil)
SNL Financial

In order to be considered well-capitalized, a bank needs to maintain a Tier 1 leverage ratio of 5%, along with a Tier 1 risk-based capital ratio of 6% and a total risk-based capital ratio of 10%. The respective minimum ratios for a bank to be considered adequately capitalized are 4%, 4% and 10%.

Please keep in mind the following:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BBT $38.49 -0.44%
SNV $27.68 -0.40%
RF $9.23 -0.86%
STI $40.55 -0.37%
USB $42.86 -0.34%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs