165 Banks On the Brink

U.S. Century Bank of Doral, Fla., remians the largest institution on the fourth-quarter watch list, with $1.3 billion in total assets as of Dec. 30. The bank slipped from well capitalized to adequately capitalized in the fourth quarter of 2010, when it posted a $52 million net loss, as it set aside reserves, mainly for nonperforming commercial real estate and development loans, and saw its total risk-based capital ratio fall below 10.00%.

The bank slipped to undercapitalized in the third quarter of 2011. Total losses for 2011 were $79 million, and the bank's nonperforming assets ratio was a very high 21.58% as of Dec. 30, according to HighlineFI.

U.S. Century Bank in June of last year entered into a consent order with state regulators and the Federal Deposit Insurance Corp., agreeing to improve board of directors supervision of the institution, hire qualified new senior officers achieve a Tier 1 leverage ratio of 8% and a total risk-based capital ratio of 12% within 120 days of the order.

The second-largest undercapitalized bank on the fourth-quarter watch list is First Mariner Bank of Baltimore, which had $1.2 billion in total assets as of Dec. 31, and is a subsidiary of First Mariner Bancorp (FMAR).

The holding company last April 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, and the Nov. 30 deadline quietly passed without the deal being consummated.

Next is Citizens First National Bank of Princeton, Ill., which had $1.0 billion in total assets as of Dec. 31, and slipped to undercapitalized during the fourth quarter, when a $15.2 million net loss left the bank with a Tier 1 leverage ratio below 4.00%.

The bank is held by Princeton National Bancorp (PNBC), and on Sept 20 entered into a consent order with the Office of the Comptroller of the Currency, agreeing to improve its credit administration, implement monthly liquidity reviews, submit a three-year strategic plan, and within 90 days bring its Tier 1 leverage ratio up to 8.00% and its total risk-based capital ratio up to 12%.

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