This Day On The Street
Continue to site
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

Undercapitalized Bank List Still Growing

A previous version of this story incorrectly included the ticker of California Bank of Commerce.

NEW YORK ( TheStreet) -- Despite the signs of economic improvement, the pace of bank failures is likely to accelerate as the shakeout continues among community lenders with capital shortfalls.

Based on preliminary first-quarter regulatory data supplied by SNL Financial for roughly 92% of the nation's 7,300 banks and savings and loan associations, 156 were "undercapitalized," according to the regulatory guidelines that apply to most institutions. Clink the link below to see the full list.

>>>Bank Watch List

That number is down slightly from 163 undercapitalized banks and thrifts on a similar list published by on Feb. 24; however, 40 of the institutions on the previous list have already failed.

More undercapitalized banks are likely to be identified when the full set of first-quarter regulatory data becomes available.

There have been 64 bank failures so far during 2010, more than double the number for the same period last year. In addition to all the institutions that are short of capital, the Federal Deposit Insurance Corp.'s "problem bank list" has continued to grow.

Most banks and thrifts need to maintain Tier 1 leverage, Tier 1 risk-based and total risk-based capital ratios of at least 5%, 6% and 10% respectively to be considered "well-capitalized" under regulatory guidelines. Some trust banks carry lower capital requirements. The ratios need to be at least 4%, 4% and 8% respectively for most to be considered "adequately capitalized".

Here's the entire list of undercapitalized banks, based on preliminary March 31 regulatory filings. The list is likely to grow once a complete set of data for the industry becomes available. Please note the list doesn't reflect any capital raised by bank institutions during the second quarter of 2010. The list is sorted by state, and then by asset size.

Publicly-traded holding companies with multiple undercapitalized bank subsidiaries include Bank of Florida Corp. (BOFL) of Naples, with three subsidiaries, and Capitol Bancorp (CBC) of Lansing, Mich, which holds Pisgah Community Bank of Ashville, N.C., Michigan Commerce Bank of Ann Arbor, Sunrise Bank of Arizona, of Phoenix, and Central Arizona Bank of Casa Grande.

Bank of Florida Corp. announced a first-quarter loss of $33.1 million on Monday, and said it needs to raise $65 million in new capital in order for all three of its subsidiaries to become adequately capitalized. The holding company is currently engaged in a rights offering that seeks to raise nearly $72 million.
1 of 3

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
STSA $33.10 -1.52%
CACB $6.02 0.00%
HAFC $23.40 0.00%
HMPR $1.79 0.00%
AAPL $93.75 0.12%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs