NEW YORK (TheStreet) -- While the Federal Deposit Insurance Corp. reported earnings improvement at more than half of U.S. banks and savings and loan associations last week, the ranks of troubled community banks continued to swell.
Based on a full set of first-quarter regulator data provided by SNL Financial for the nation's 7,900 banks and savings and loan associations, 161 were undercapitalized, according to the guidelines that apply to most institutions. Click the link below to see the full list:
The list is sorted by state, city and name of the undercapitalized bank or thrift. The Watch List of 161 institutions is down slightly from 163 on a similar list published by TheStreet on Feb. 24, although 49 of the institutions on the previous list have already failed.When the FDIC published its quarterly banking profile on Thursday, the agency also said that its "problem bank list" had grown to 775 from 702 at the end of the fourth quarter and 305 at the end of the first quarter of 2009. While the problem bank list is not made public, it presumably includes all the undercapitalized institutions as well as others threatened by high levels of nonperforming loans and securities. 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. Sterling Savings Bank of Spokane, Wash., is the largest bank on the watch list with $10 billion in total assets and is the main subsidiary of Sterling Financial (STSA). The holding company had announced on May 6 that it had received approval from the U.S. Treasury Department to raise $555 million worth of common and preferred stock, including an investment of up to $170 million by Thomas H. Lee Partners, a Boston-based private equity firm. Then on Monday, Sterling Financial announced that Warburg Pincus Private Equity had agreed to invest $139 million while Thomas H. Lee Partners had agreed to lower its investment to the same amount, for a combined $278 million. If Sterling succeeds in raising the entire $555 million, the two investment groups would then have a combined 40% stake in Sterling, after regulatory approval.
|Bank Stock Picks Picking a Winner Among Tarp Holdouts|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV