Capitol BancorpCapitol Bancorp ( CBC) of Lansing, Mich. is the only bank-holding company with multiple subsidiaries on the list. The holding company had 64 separately-charted bank subsidiaries in 17 states at the end of 2009 and is aiming to reduce the number of subsidiaries to 26 this year through sales of some subsidiary banks and mergers. Last Tuesday, Capitol Bancorp announced that three Georgia subsidiary banks had been consolidated. On July 30, the company announced it had completed the sale of Community Bank of Lincoln, Neb. On July 23 Capitol announced it was extending its offer to exchange its trust-preferred shares for common shares until Aug. 31. The offer is for two common shares for "each $10.00 liquidation amount of the trust preferred securities that Capitol accepts in the exchange offer." That would have worked out to less than 27 cents to the dollar as of Thursday's market close. Little wonder that only 6% of the trust-preferreds had been tendered under the exchange offer as of July 22.
Sterling SavingsThe largest undercapitalized bank on the list remains Sterling Savings Bank of Spokane, Wash, which had $9.2 billion in total assets as of June 30 and is held by Sterling Financial ( STSA).
AnchorBank, FSBThe second-largest institution on the undercapitalized list is AnchorBank, FSB of Madison, Wis., with $4 billion in total assets as of June 30. The thrift is held by Anchor BanCorp Wisconsin ( ABCW), which owes $110 million in TARP money. The holding company reported a second-quarter net loss to common shareholders of $12.2 million, or 73 cents a share, and said the capital ratios at AnchorBank, FSB had improved during the second quarter because of a continued reduction of the balance sheet through branch sales, branch closings and asset sales. Anchor's credit costs also declined during the quarter. Its provision for loan losses was $8.9 million, down from $20.2 million in the first quarter, and $19.4 million a year earlier. On the holding company level, Anchor Bancorp reported a negative book value of $3.95 a share as of June 30. "Improving our capital position is our number one focus," said CEO Chris Bauer in a statement Hanmi Bank The third-largest bank on the undercapitalized list, with $2.9 billion in assets, is Hanmi Bank of Los Angeles, which is the main subsidiary of Hanmi Financial ( HAFC - Get Report). The numbers for June 30 don't reflect the holding company's significant third-quarter capital raising activities. On July 27, Hanmi announced it had raised $120 million in common equity through a rights offering and a "best efforts public offering." That capital raise wasn't sufficient to meet a "final order" from the California Department of Financial Institutions and a similar agreement with the Federal Reserve for the bank to increase its ratio of tangible stockholders equity to tangible assets to 9.0% by July 30. Hanmi Financial entered into an agreement in May to sell about $210 million in common shares to Woori Financial Holdings, which is based in Seoul, South Korea. That capital raise is subject to approval by the regulators and Hamni said in its second-quarter 10-Q filing that the holding company couldn't provide "any assurance that the transactions contemplated by the securities purchase agreement with Woori will be consummated." ShoreBank ShoreBank of Chicago appeared to be on the brink of failure last week after Bloomberg reported that the privately-held Chicago lender had been denied $75 million in federal bailout money. A deal made in May with a group of investors including Citigroup ( C - Get Report), Bank of America ( BAC - Get Report), Goldman Sachs ( HOMB), JPMorgan Chase ( HOMB), and Genderal Electric ( HOMB) had promised ShoreBank a $145 million capital infusion contingent upon the receipt of the bailout money. The investor money was placed in escrow, and there have been reports that the Aug. 6 deadline for the $145 million to be returned has been extended. The agreement has become a political hot potato because of ShoreBank's extensive political connections and on August 4, FOXBusiness reported that Neil Barofsky, the TARP inspector general, had agreed to investigate the circumstances that led to the May agreement. >>>Bank Watch List
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