Community banks hopeful next capital wave is a tsunami - San Francisco Business Times:

viningocouqyl1601.blogspot.com
The capital, raised mostly throughu private placements, in some cases is needed to bolster balancse sheets as banks deal with expected increases in loan lossesx and tougherregulatory requirements. But other banksa simply are building cash cushions that will let them act quicklu to buy branches or even other financial institutionsz when they come onthe U.S. banks and other financial groupsraisedx $89 billion in equity via 92 deals in the secons quarter of 2009, the highest numbee of deals and the highest dolladr volume in a year, according to a reporty from Dealogic, a New York trackintg firm, that was quoted in .
Some bank s have raised capital to repay funds fromthe ’ss Troubled Asset Relief Program. Otherx that did not accept TARP funds are finding they also need or want toraisde capital, said Jeff Hunt, president of Kendricj Pierce & Co., a Tampa investment banking firm. “We’ree hopefully coming out of one of the worst bankingyenvironments we’ve seen sincee the S&L crisis, if not datintg back to the Hunt said. “We’ve positioned ourselves to be ready for this next wave of in Lakeland is amonbg those raising capital because itsees opportunities, said His firm is servinh as placement agent for the $10. million public offering.
Community Southern (Pink Sheets: CMUY) is arming itself with capital to potentiallyt acquirebranch offices, Hunt The bank doesn’t have any dealss in the works, but its largesty competitors in Polk County have been changing ownera and consolidating, creating an opening to attract customersx looking for personalized servicess provided by a community bank, according to the offering Largo-based has been beefing up capital regularlyy since it was established in allowing it to buy in Clearwatee last year, as well as a Pilor Bank branch in The latest round of $12 million in equity raised from 44 investore in a private placement in was part of an ongoing plan for continued said Brad McMurtrey, president of USAmeriBank.
Investors put in at least $100,00 each, and despite the economic the dealwas oversubscribed, McMurtrey said. Roughly 170 shareholder s of raised $18.3 milliom in equity in a private placementrin May, a filing with the said. “Thid infusion of new capital is a vote of confidencse from ourexisting shareholders,” Robert chairman and CEO of the Tampa holding company, said in a Florida Bank has been expandinh statewide and — like USAmeriBank — was among just a smallo number of Bay area banks that were in the blacl in the first quarter of providing a positive return on equity . Some capitall raising has clearly been adefensive Inc.
, based in Naples, signed an agreementt last year with stats and federal regulators to eliminate bad loands from its books and to boost its In June, the bank raised $25 million from two an SEC filing said. It planxs to raise an additional $50 the filing indicated. Even banks consideredf well-capitalized are looking at adding someadditional equity, as regulatorsa increase their scrutiny, Hunt said. The typicaol threshold for a key ratio, measuring Tier 1 capital as a percentrof risk-weighted assets, has been 10 percent, but afteer examinations some banks are being asked to bump that to 12 he said. The capital quest is likely to accelerate, according to a July 6 report from .
Analyst Matt O’Connor wrote that U.S. banks may have to raisew as muchas $300 billionh to cover expected credit losses and higher capitapl requirements.