Silver State Bank Postmortem

Here are some final stats on the bank (SSBX) seized Friday by the Federal Deposit Insurance Corporation [FDIC], as of 6/30/08.

Equity capital to assets - 6.87%
Core capital (leverage) ratio - 6.56%
Tier 1 risk-based capital ratio - 7.57%
Total risk-based capital ratio - 8.86%

Noncurrent loans to loans - 15.38% (Total noncurrent loans and leases, Loans and leases 90 days or more past due plus loans in nonaccrual status, as a percent of gross loans and leases.

Time deposits of $100,000 or more - 21.23%

Comments

[Big Al45:]

What's really scary is that there are probably a dozen publically traded banks that continue to operate with worse statistics than those quoted for Silver State.

Silver State management must have done something else to piss off the FDIC. Or the wrong politician - maybe they should have paid McCain's kid more money to stay on their board.

2008 Sep 06 11:39 PM

[billddrummer:]

I think it was a concentration issue, with too many loans in construction and development, too much credit to too few borrowers, and concentrations in high cost deposits.

2008 Sep 08 11:12 AM