NEW YORK (TheStreet) -- Between mid-2006 through the end of 2008, I wrote many pieces that warned investors to avoid community banks. This followed my prediction that many community banks would fall like dominoes in the failure process conducted by the FDIC.
In the December 2008 article I wrote for Equities magazine, I profiled 12 community banks that I thought would fail before the Great Credit Crunch came to an end. Seven failed, four survived and one is no longer publicly traded.
In 2008, the FDIC closed only 25 banks via the failure procedures. In 2009, the floodgates of failure opened with 140 bank failures. The peak year was 2010, with 157 failures. Today the total for the Great Credit Crunch is 481 bank failures, on the way to my predicted 500.Here is a copy of the table I used for that December 2008 article: Courtesy of FDIC and Equities.com These community banks were on my endangered species list because they had strong sell or sell ratings according to ValuEngine, and because they had a Construction and Development Loan to Risk Based Capital ratio above 100%, which was the regulatory guideline. Here are my buy-and-trade profiles for the four survivors:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV