New Research Available on the Doo Doo Bank List

By: Reggie Middleton | Wed, Sep 2, 2009
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In following with my promise to call out the nations most insolvent, publicly traded banks, I am publishing part two of my short list of Doo Doo banks. If you haven't been following this self-perpetuating missive, see:

  1. The Doo Doo 32, revisited
  2. The FDIC as a catalyst, or the new Doo Doo 32!
  3. Thoughts on the June 2009 Case Shiller report: Are prices really improving?
  4. The Fed Believes Secrecy is in Our Best Interests. Here are Some of the Secrets
  5. More on the FDIC as a Catalyst...
  6. Discussion of the 210% Texas Ratio Bank

We have looked into 14 additional banks out of the group previous shortlisted from the original 869 bank scan (see The FDIC as a catalyst, or the new Doo Doo 32!) and almost all the banks in the additional list have better metrics compared with the original list of 8 banks published last week. We have selected two of the 14 banks analyzed recently based on the banks' loan and investment portfolio, operating metrics and valuation ratio.

Capitol Bancorp:

Price (August 27, 2009) 5.3
Market cap (in mn) 92.8
P/B 0.3x
P/Tangible BV 0.4x
Loan Loss coverage YTD -0.3
Texas ratio 103.8%
Eyles Test 303643.0
Shortfall from current reserve for loan loss 189428.0
Shortfall as % of tangible shareholders' equity 75.8%
Cushion (Reserve less NPL+90 days due) -60.1%
Adjusted leverage 22.6x
NPA / Equity 147.4%
NPA / Total Loans 8.0%
NPL and 90 days due/ Equity 105.8%
NPL and 90 days due/ Total Loans 5.8%
NPL and 90 days due and 30 days due/ Equity na
NPL and 90 days due and 30 days due/ Total Loans na
Loan exposure
Residential real estate loans to tangible common equity 3.58x
Commercial real estate loans to tangible common equity 11.21x
Investment securities exposure
Total investment portfolio to tangible common equity 0.19x
Level 3 assets to tangible common equity 0.00x
AFS break up
Level 1 0.0%
Level 2 100.0%
Level 3 0.0%
Unrealized gains (losses) as % of amortized cost 0.3%
After tax unrealized gains (losses) as % tangible equity 0.0%
Troubled Securities exposure
Privately issued RMBS to tangible common equity na
CMBS to tangible common equity na
AMBS to tangible common equity na
Other debt securities to tangible common equity na
Equity securities to tangible common equity na
Total na



Subscriber Short Candidate 2 (subscribers may download the summary overview of this company here Doo Doo Bank Short List, part 2 2009-09-02 00:20:59 752.29 Kb:



Reggie Middleton

Author: Reggie Middleton

Reggie Middleton

Reggie Middleton

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