With so many banks in Illinois, there are bound to be more than a few feeling the pinch as checking accounts become less and less profitable.
Of course, the banks with the greatest incentive to merge with stronger institutions are the ones still reeling from credit losses.
According to data provided by HighlineFI, there were 19 undercapitalized Illinois banks and thrifts as of Dec. 30 -- which were included on TheStreet's Bank Watch List -- not including Charter National Bank and Trust of Hoffman Estates, which was shuttered by the Office of the Comptroller of the Currency on Feb. 10, and sold by the Federal Deposit Insurance Corp. to Barrington Bank & Trust Company, NA of Barrington, Ill., which is a subsidiary of Wintrust Financial (WTFC) of Lake Forest, Ill.
Since the Watch List is based solely on capital ratios, we take a different approach on our quarterly coverage of banks in key states, by looking at overall credit quality to identify troubled institutions.
Illinois Banks with Weakest Asset QualityThe following list includes all banks in the state with nonperforming assets comprising more than 15% of total assets as of Dec 30: