Comments on: Horizon’s chief lending officer resigns

By: Dave Gallagher

Dave Gallagher — Tue, 17 Nov 2009 23:28:20 +0000

Truly concerned,

From a strictly numbers/capitalization standpoint, you can get a lot of information from http://www.bankrate.com, which gives ratings on banks and credit unions.

By: Karin Pelan

Karin Pelan — Tue, 17 Nov 2009 22:15:34 +0000

Suggestions for a safe, secure, local, well capitalized financial institution that offers exceptional service … may I suggest a credit union! Whatcom County is quite fortunate to have several that offer a full line of products and services to meet your needs including Pacific Northwest CU.(membership is open to anyone that works, worships or lives in Washington state) Check out a credit union, I guarantee you will be happy that you did!

By: Dave Gallagher

Dave Gallagher — Tue, 17 Nov 2009 19:47:55 +0000

Thanks, Lucky 7, Looks like you posted your comment just as I was posting my other post about undercapitalized banks.

By: truly concerned

truly concerned — Tue, 17 Nov 2009 03:44:04 +0000

It is amazing that Horizon has fallen so far in just the last 18 months. It’s probably good I didn’t finance our home using one of their weird loan offerings. With their stock price at in the 20 cent range and people leaving the ship, it sounds like it is sinking quickly. I am wondering where I should take my accounts. I heard that Bank of the Pacific (formerly Bank Northwest) is very strong and well capitalized. Any body out there bank with them. I hear they are friendly, helpful and know their stuff. Let me know. I’ll watch the postings.

By: Lucky 7

Lucky 7 — Mon, 16 Nov 2009 23:07:13 +0000

Dave,

As you know, SNL Financial and TheStreet.com publish a quarterly list of undercapitalized banks. They just published the Sep 30 list last week (see link below).

The key ratio for a bank is its Tier 1 Leverage Ratio, which compares the bank’s net worth to total assets. The higher the ratio the better. When a bank’s Tier 1 ratio falls below 4%, it is considered “Undercapitalized.” Under 3%, “Significantly Undercapatilized.” And under 2%, “Critically Undercapitalized.”

Horizon’s Tier 1 ratio as of Sep 30 is 0.8% and is “Critically Undercapitalized.” Horizon’s ratio places it 7th on the SNL/Street.com list of most undercapitalized banks, and now that the FDIC closed the no 6 bank on the list, Horizon has taken over that dubious position.

I presume your readers will know how to interpret this information without any assistance. Apparently Mr. Hoekstra was able to ascertain the writing on the wall.

Link to TheStreet.com list based on SNL data, sorted by state:
http://www.thestreet.com/tsc/common/images/storyimages/1110_UnderCapBanks.html

Link to list sorted by most undercapitalized:
http://nwcitizen.us/documents/Larry-Divesting_FH/Undercapitalized%20Banks%209-30-09.pdf

Link to relevant article:
http://www.thestreet.com/story/10462318/1/regulatory-capital-categories-for-banks-and-sls.html