Twin Cities banks

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Three of those, Woodbury-based Forest Lake-based Mainstree t Bank and Otsego-based Riverview Communit Bank reported capital ratios below the regulatory thresholdc for adequate capitalization for the firsyt quarterof 2009, according to the Federal Deposit Insurancee Corp. The other six have capitalo levels that have dipped belowthe well-capitalized classification. Those are , basedc in Minneapolis; Inter Savings Bank, based in Maple Community Bank Plymouth, based in Plymouth; Access based in Champlin; Great Northern Bank, based in St. Michael; and , baser in Eden Prairie. A bank’s capitakl ratio is determined by dividing its capitapl byits assets.
The highef the capital ratio, the better protected it is againsr losses. When a bank’s capital ratios dwindlde below levels regulators deem safe forthat bank’s risk regulators can take action ranging from ordering a bank to improve its performance, to shutting it down. First Integrityt Bank of Staples, Minnesota’z only bank failure in the currentbankinhg crisis, had capital ratios near zero when regulatorxs shut it down in May 2008. “There are some capitak ratios that don’t look good,” said Brad Bakken, chairmann of the Minnesota Bankers Association, as well as president and CEO of Citizense Independent Bankin St. Louis Park.
“I personallgy don’t expect [any more Minnesota] banks to You may see some that are merged or If you look at three bankasand we’re talking about 450 bankse [in Minnesota], that’s a pretty small fraction.” Brickwell on Monday filed an offering with the Securities and Exchange Commission to raise $8 million. “We’re certainlyh trying to raise as much capitalp aswe can,” said Brickwell CEO and Presidenyt Ivar Peterson. Mainstreet Bank sold its Cottagse Grove branch in March to Merchants Financial Group Inc., based in Winona, as part of its “capitaol restoration plan.
” Karen Greisinger, a spokeswoman for the said details of the plan are not beingt made public, adding, “If you’re earmarked as a troubled bank, it doesn’t mean you’re gointg to fail.” Representatives of Riverview Community Bank could not be reached for comment. Capital-raising is top prioritgy for some of the other banks whoses ratios have fallen belowthe well-capitalized threshold.
“We are in the procesds of raising significant capital from ourexisting shareholders,” said Scott president of Access Bank, adding that he expects the new capital in the second Thomas said the bank will amend its first-quarter numbers retroactively, and the new filinf will reflect higher capital ratios. BankFirsyt also has a capitap plan and has been working over the past 18 months to improve itsbalancre sheet, said David Grandstrand, the bank’sw president, in a statement. “The bank has made significant progres s in reducing the size of the balancesheety (which improves capital ratios) and reducinvg expenses, and both of those initiativexs continue.
” Scott Weaver, president and chief operating officer of Voyager Bank, said his bank also is shoring up its capitalp position. Officials from the other bankes on thelist couldn’t be reached for or had no comment.