This bank should be around quite awhile.......IMO
Sterling Savings
The largest bank on last quarter's undercapitalized bank was Sterling Savings Bank of Spokane, Wash., which had $10.3 billion in total assets as of September 30 and is held by Sterling Financial (STSA_).
Sterling Bank improved to well-capitalized as of September 30, with a Tier 1 leverage ratio of 10.19% and a total risk-based capital ratio of 16.77%, following the holding company's completion of its $730 recapitalization in August, which included large issuances of common shares to private equity investors Thomas H. Lee Partners and Warburg Pincus LLC and the conversion of $303 in preferred stock held by the U.S. Treasury Department for bailout funds received through the Troubled Assets Relief Program, or TARP, to common shares.
On August 2, Sterling Financial's other bank subsidiary, Golf Savings Bank of Mountlake Terrace, Wash. was merged with Sterling Savings Bank. Golf Savings had $564 million in total assets as of June 30.
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Hanmi Financial Corporation| HAFC UPJ.P. Morgan Chase & Co.| JPM UPCitigroup Inc.| C UPSterling Savings Bank's level of problem loans is still quite high, but asset quality improved a bit from the previous quarter. The nonperforming assets ratio was 9.23% as of September 30, compared to 10.02% the previous quarter and 6.53% a year earlier. The bank posted a net loss of $40.3 million during the third quarter, with net charge-offs - loan losses less recoveries - totaling $83.7 million. Sterling Savings Bank's provision for loan losses was $66.6 million, meaning that the bank "released" $17.1 million in loan loss reserves. This followed the trend for the largest U.S. bank holding companies, with loan loss reserves at Citigroup (C_) declining $2.5 billion during the third quarter, while Bank of America (BAC_) and JPMorgan Chase (JPM_) both released $1.7 billion in reserves, Wells Fargo (WFC_) released $645 million and PNC Financial (PNC_) released $105 million in reserves, according to data supplied by SNL Financial.
