Federal regulators have told the managers of a troubled Nolensville community bank they need to raise its capital ratios by May and plan to sell the bank or merge it with another institution should they fall short. The Federal Deposit Insurance Corp. in mid-November told Peoples State Bank of Commerce, which lost $7.5 million in the first nine months of 2011, it also needed to trim the amount of loans to insiders and "eliminate from its books, by charge-off or collection, all assets or portions of assets classified Loss by the FDIC or the State" during an examination in late 2010. The latter part of the order should have been completed by late last month. Check out the full order here.
Along with Peoples State, which took a $6 million loan loss provision in the third quarter, the FDIC in November also issued a similar order to Farmers Bank of Lynchburg. Both lenders were controlled by financier Ed Lowery but last summer gave up a chunk of their equity to Tennessee Commerce Bank to satisfy some of Lowery's debts.
Housing market research firm CoreLogic is out with its latest set of delinquency and foreclosure statistics for the Nashville area and the news is very so-so. The number of home loans at least 90 days delinquent has stopped trending down while the rate of foreclosures is at its highest point since February. Drilling down to foreclosures, little appears to have changed from June's numbers.
Monday brought a special kind of relief rally in shares of Tennessee Commerce Bancorp, which more than doubled from their very low base after Friday's FDIC deadline to raise capital came and went without word of new regulatory sanctions. Early morning Tuesday action has them up some more, but it remains to be seen what the bank's near-term future holds: Both bank and FDIC officials declined Monday to comment on the status of the company's capital ratios and conversations they're having.
The owners of the Fifth & Main condo complex say they will accept until the end of the year the auction-level prices paid by 25 people Saturday for the 80-plus units they still need to ship. The weekend auction fetched ACG Equities about $135 per square foot.
“We hope we won’t have any left by January, but if we do, we’ll have to discuss pricing at that point,” he said. “In the last three weeks before the auction, we had about 600 people come through the building, and 100 of them came back multiple times. We see those people as our prime buyers.”
It appears to be a little bit academic at this point, but Tennessee Commerce Bancorp executives on Wednesday told investors that it has received a formal agreement from the Tennessee Department of Financial Institutions that outlines a host of capital level, asset management and governance steps it must take to right its ship. Many of the terms and remedies prescribed are the same ones called for earlier this year by the Federal Deposit Insurance Corp.