The total risk-based capital ratios needs to be at least 8% for most institutions to be considered adequately capitalized by regulators and 10% for most to be considered well-capitalized. Most of the undercapitalized banks on the above list are operating under regulatory orders to achieve and maintain total risk-based capital ratios higher than 10%.
The list also includes financial strength ratings provided by Weiss Ratings. Weiss Ratings uses a very conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A-plus (Excellent) to E-minus (Very Weak).
Vision Bank of Panama City had a 15.47% nonperforming assets ratio as of Dec. 30, and is held by Park National Corp. (PRK - Get Report)of Newark, Ohio. The holding company announced on Nov. 16 that it would sell "substantially all assets and liabilities" of Vision Bank of Home BancShares (HOMB) of Conway, Ark., for $27.9 million. On Jan, 23, Park National said it expected the Vision Bank deal to be completed during the first quarter and also expected "to recognize a pre-tax gain of approximately $18 million on the closing date of the transaction."
Interested in more on Park National Corp.? See TheStreet Ratings' report card for this stock.