Tuesday, July 29, 2008

Two More Banks Go Down

Last Friday, the Federal Deposit Insurance Corporation (FDIC), issued its usual late afternoon press release announcing the seizure of two more banks. This Friday afternoon watch is starting to become a popular blogging sport for many of us. There is not much to add to this story since it has been well covered, but I will publish the final stats for the banks from 3/31/2008.

First National Bank of Nevada - Reno, NV

Noncurrent assets plus other real estate owned to assets - 4.28%
Percent of loans noncurrent - 8.35%
Total risk-based capital ratio - 9.67%
Tier 1 risk-based capital ratio - 8.40%
Core capital (leverage) ratio - 6.24%
Equity capital to assets - 7.37%

First Heritage Bank - Newport Beach, CA

Noncurrent assets plus other real estate owned to assets - 1.26%
Noncurrent loans to loans - 1.89%
Equity capital to assets - 11.89%
Core capital (leverage) ratio - 12.16%
Tier 1 risk-based capital ratio - 14.40%
Total risk-based capital ratio - 15.66%

This bank has very high capital ratios, and fairly low rates of non current loans, which begs the question of what did them in. The OCC said it closed the bank because it was undercapitalized, which is not reflected in the numbers above so a lot must have happened since the end of March 2008.

Read my post on the failure of Hume Bank and First Integrity Bank

1 comment:

Anonymous said...

we'll know things have gotten bad when the FDIC gets an RSS feed for the announcement of Friday's bank failures

peter xyz