trending Market Intelligence /marketintelligence/en/news-insights/trending/vbfbqkpwh0c6bace3adkew2 content esgSubNav
In This List

Undercapitalized US bank list down to a dozen

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Undercapitalized US bank list down to a dozen

The number of U.S. undercapitalized and "problem" institutions continued to decline in the fourth quarter of 2017.

In this analysis, S&P Global Market Intelligence classifies a company as undercapitalized if it falls below the prompt corrective active thresholds effective Jan. 1, 2015: a total risk-based capital ratio less than 8%, or a Tier 1 capital ratio less than 6%, or a common equity Tier 1 ratio less than 4.5%, or a leverage ratio less than 4%.

As of Dec. 31, 2017, a dozen U.S. banks and thrifts were undercapitalized. Boston-based Cambridge Appleton Trust NA was the lone entry to the list compared to the prior quarter. The institution, with just $200,000 in total assets, is 100% owned by mutual bank Cambridge Savings Bank.

Fort Walton Beach, Fla.-based Beach Community Bank is the largest undercapitalized bank, with assets of $496.0 million at year-end 2017. Among all companies in the industry, it has the lowest ratios for total risk-based capital, Tier 1 capital and CET1. Beach Community also has the highest adjusted Texas ratio, at nearly 1,000% at Dec. 31, 2017.

Four banks escaped undercapitalized territory in the fourth quarter: Atlanta-based Affinity Bank; Elkton, Md.-based Cecil Bank; Lakeland, Ga.-based Farmers & Merchants Bank; and Little Rock, Ark.-based Heartland Bank.

According to the Federal Deposit Insurance Corp.'s quarterly banking profile, "problem" institutions declined to 95 at the end of 2017, from 104 at Sept. 30, 2017. Total assets of "problem" banks fell to $13.9 billion from $16 billion.

SNL Image

SNL Image

SNL Image

Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles on the U.S. financial sector.

Banks report regulatory capital information on the call report schedule RC-R, which can be accessed under the Regulatory Financials section of a company's briefing book page on the Market Intelligence website or with the Excel add-in tool. Users also can click here to watch a recorded training on performing a CAMELS analysis.

Click here to watch a recorded training on the new reporting requirements and disclosures related to regulatory capital under the final Basel III rules.