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146 Banks Desperate for a Bailout

NEW YORK (TheStreet) -- There are now 146 undercapitalized institutions on the TheStreet's Bank Watch List, with preliminary third-quarter data now available for roughly 91% of the nation's banks and thrifts.

Based on third-quarter regulatory data supplied by SNL Financial for the nation's banks and savings and loan associations -- and factoring-in 21 bank and thrift failures since TheStreet's previous Watch List was published on August 16 -- 146 institutions were undercapitalized according to the regulatory guidelines that apply to most institutions.

Banks are required to file their call reports by Nov. 15.

Click the link below to see the full list:

It is important to note that any capital raised by institutions during the fourth 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.

Three of the banks on the third-quarter watch list were actually negatively capitalized as of September 30. These include CommunityOne Bank, NA, of Asheboro, N.C., Premier Community Bank of the Emerald Coast, of Crestview, Fla., and Mid City Bank, of Omaha, Neb.

CommunityOne is the largest institution on the third-quarter watch list, with $1.6 billion in total assets as of Sept. 30. The institution is unlikely to appear on next quarter's Bank Watch List, as its parent, FNB United Corp. (FNBN), completed a $310 million recapitalization on Oct. 24, in connection with its acquisition of Bank of Granite Corp. of Granite Falls, N.C., the parent company of Bank of Granite, which was also undercapitalized as of Sept. 30.

FNB announced that Brian Simpson would serve as the combined company's new CEO, with Bob Reid becoming FNB United's new president. The combined company's new board of directors includes representatives from The Carlyle Group and Oak Hill Capital Partners, each of which invested $79 million as part of the recapitalization.

FNB United's shares on Monday underwent a 1-for-100 reverse split in order "to increase the per share trading price of the Company's common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market." Shares will trade for 20 days under the ticker "FNBND" in order "to designate that it is trading on a post-reverse split basis," after which the shares will trade under their customary "FNBN" ticker symbol.

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