This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FDIC Data Show Stressed Community Banks

Stocks in this article: BXS BPFH SNV STSA WAL WSBC UCBI ABAQ

NEW YORK ( TheStreet) -- According to data from the FDIC and from my analysis of the FDIC Quarterly Banking Profile for the fourth quarter of 2012, I conclude that the "Great Credit Crunch" continues among community banks on Main Street, USA.

Among the 7,083 FDIC-insured financial institutions there are 1,113 publicly traded banks, most of which are categorized as community banks. Looking at FDIC data, I find that 73 of these banks are overexposed to construction and development loans (C&D), and 451 are overexposed to commercial real estate loans (CRE). In addition to these signs of continued stress, 47 have 100% of their CRE loan commitments fully funded among the 305 that have at least 80% fully funded.

Based upon this information, 460 bank stocks qualify to be on the ValuEngine List of Problem Banks.

Back on Dec. 11, 2012, I profiled 24 community banks with overexposures to C&D and CRE loans as reported in the Q3 FDIC Quarterly Banking Profile. Today, I update these profiles based upon data in the Q4 FDIC Quarterly Banking Profile.

On Feb. 11, I stated that only five of the community banks that I have been tracking beat their Q4 2012 EPS estimates. Nine missed. This was the first sign that stress among community banks continues.

The Feb. 11 post noted that three of the community banks had been downgraded to hold from buy, leaving us with eight buy rated stocks and 15 hold rated stocks.

Today's list of 24 community banks shows only four buy-rated community banks with five downgrades, one of which went to strong sell from buy.

Observations from the table above:

BancorpSouth (BXS) is the only bank among the 24 to reduce exposure to CRE loans to be below 300%.

Boston Private Financial Holdings (BPFH), BXS, Synovus Financial (SNV), Sterling Financial (STSA), and Western Alliance Bancorporation (WAL) were downgraded to hold from buy since Dec. 11, 2012 with STSA downgraded to strong sell from buy. There have been no upgrades among these community banks.

The biggest winner over the past twelve months is WAL with a gain of 66.7% and the biggest loser was STSA with a loss of 22.0%.

The twelve month trailing P/E ratios range between 13.1 WesBanco (WSBC) and 24.6 United Community Banks (UCBI), among the 21 with ratios, so these community banks are not cheap.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs