National Bank of Commerce of Berkeley, Ill., reported $57 million in securities losses during the third quarter, which wiped out most of the $459 million institution's capital. Total equity capital was just $5.7 million as of Sept. 30, down from $41 million at the end of the second quarter. With deductions for deferred tax assets and disallowed goodwill, the bank's tier 1 capital was negative $39 million. National Bank of Commerce's loan quality hasn't been a problem, as the institution reported nonperforming assets comprising 0.95% of total assets as of Sept. 30, with no loan charge-offs year to date.
Oakland Deposit Bank of Oakland, Tenn., reported net loan charge-offs of residential, commercial and consumer loans totaling $7.2 million during the third quarter. To cover the charge-offs and expected future losses, the $126 million institution set aside $8.7 million for loan loss reserves in the quarter, which lowered its total capital to just $1.8 million. Oakland Deposit was considered critically undercapitalized as of Sept. 30, and its leverage and risk-based capital ratios were 1.43% and 3.11%.
Another bank hit hard by the Fannie and Freddie debacle was New York City's Berkshire Bank, held by Berkshire Bancorp. Securities losses during the quarter totaled $94.5 million, leaving the $917 million bank with a net loss of $88.5 million and just $3.8 million in total capital as of Sept. 30. This is another bank that has maintained good loan quality through the crisis, as nonperforming assets comprised 0.83% of total assets as of Sept. 30, and year-to-date charge-offs were close to zero.
