NEW YORK (TheStreet) -- Now that a complete set of second-quarter data is available for the nation's banks and savings and loan associations, it's clear that there are still community banks heading toward their doom.
There are now 154 undercapitalized institutions on the TheStreet's Bank Watch List, with second-quarter data now available for all of the nation's banks and thrifts. This is up from 149 on our previous list form August 2, when data wasn't yet available for most S&Ls, and also factors-in three more bank failures.
Based on second-quarter regulatory data supplied by SNL Financial, 154 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 third 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. Thrifts joining the Watch List now that all of the second-quarter data is available, include SCB Bank of Shelbyville, Ind., which is held by Blue River Bancshares (BRBI). SCB bank is operating under a May 16 cease and desist order from the Office of Thrift Supervision, requiring the institution to achieve and maintain a Tier 1 leverage ratio of 8.25%, "after the funding of an adequate Allowance for Loan and Lease Losses," and a total risk-based capital ratio of 12.25% by September 30, " The largest of the seven thrifts joining the Watch List is Lydian Private Bank of Palm Beach, Fla., which is now the second-largest bank on the list. Lydian filed an updated first-quarter Thrift Financial Report in June, according to the South Florida Business Journal, to restate its first-quarter net loss to $23.4 million, from $15.9 million, thus slipping to "critically undercapitalized" status. The first-quarter restatement mainly reflected an increased provision for loan losses.
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
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
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
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 Plus 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