NEW YORK (TheStreet) -- There are 153 undercapitalized banks on the TheStreet's Watch List, according to preliminary first-quarter data now available for roughly 92% of the nation's banks and thrifts.
Based on first-quarter regulatory data supplied by SNL Financial for the nation's banks and savings and loan associations -- and factoring-in 17 bank and thrift failures since TheStreet's previous Watch List was published on February 23 -- 153 institutions were undercapitalized according to the regulatory guidelines that apply to most institutions.
Click the link below to see the full list:
>>>Bank Watch List
It is important to note that any capital raised by institutions during the second quarter of 2011 will not be reflected on the Watch List.
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% 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% for most to be considered adequately capitalized
The largest bank on the preliminary first-quarter Watch List is Integra Bank, NA
of Evansville, Ind., which had $2.2 billion in total assets as of March 31, and has been operating under an Office of the Comptroller of the Currency
consent order since July 2010, under which it agreed to achieve and maintain a Tier 1 leverage ratio of at least 9% and a total risk-based capital ratio of at least 12%. SNL Financial reported that the OCC didn't accept a capital restoration plan submitted by the institution in March, and was therefore considered "significantly undercapitalized" by the regulator.
Integra Bank's nonperforming assets -- including nonaccrual loans and loans past due 90 days (less government-guaranteed balances) and repossessed real estate -- made up 10.92% of total assets as of March 31.
The institution is the main subsidiary of Integra Bank Corp. (IBNK)
, which was delisted from the NASDAQ Capital Market on May 2.
The next-largest largest institution on the preliminary first-quarter Watch List is CommunityONE Bank, NA
of Asheboro, N.C., which had $1.8 billion in assets and was actually negatively capitalized as of March 31. The bank is held by FNB United (FNBN )
The good news for CommunityOne is that FNB United on April 27 entered into a deal to acquire Bank of Granite Corporation (GRAN)
of Granite Falls, N.C., with $155 million in new capital being contributed by The Carlyle Group
and Oak Hill Capital Partners
. The target company holds Bank of Granite
, which is also on the Watch List.
The merger is subject to shareholder and regulatory approvals, and is expected to be completed during the third quarter.
Next is Community Banks of Colorado
of Greenwood Village, which had $1.5 billion in total assets as of March 31. SNL reported that the Federal Reserve
issued a Prompt Corrective Action against the institution on February 8 after determining it was "significantly undercapitalized." The order required the bank to become adequately capitalized within 90 days or agree to be acquired or merge with a stronger institution.
First Mariner Bank
of Baltimore had $1.3 billion in total assets as of March 31, and after a first-quarter net loss of $6.8 million was left with a total risk-based capital ratio of 7.91%, which was just below the 8% required for most banks to be considered adequately capitalized by regulators. The institution is held by First Mariner Bancorp (FMAR)
The holding company announced on April 25 that it had entered into an agreement with Priam Capital Fund I LP
for an investment of $36.4 million, as part of the company's plan to raise $160 million in new capital. Priam's investment was contingent upon First Mariner lining up the remaining $123.6 million in capital.
First Mariner also said that CEO Edwin Hale, Sr., would step down after the recapitalization was completed.
Capitol Bancorp (CBCR)
of Lansing, Mich. is one of two publicly traded bank holding company with multiple subsidiaries on the Bank Watch List.
The holding company had 64 separately-charted bank subsidiaries in 17 states at the end of 2009, and reduced the number of subsidiaries to 23 in 2010, through sales of some subsidiary banks and mergers of others.
In its annual 10-K filing with the Securities and Exchange Commission
on March 31, Capital Bancorp announced had received a subpoena from the SEC on November for information related to accounting for certain loans and their related loan loss reserves, and that the regulator had informed the company on March 30 that another subpoena was forthcoming.
Capital Bancorp's subsidiaries appearing on the preliminary first-quarter Watch List include Sunrise Bank of Arizona
of Phoenix, Bank of Las Vegas
, 1st Commerce Bank
of North Las Vegas, Nev., Sunrise Bank
of Valdosta, Ga., First Carolina State Bank
of Rocky Mount, N.C., Pisgah Community Bank
of Asheville, N.C., Central Arizona Bank
of Casa Grande, and Sunrise Bank of Albuquerque