Primary targets.

As the quality of loans and other assets of Tar Heel banks fell last year, Texas ratios climbed, giving regulators plenty to worry about. At the end of 2008, only three banks on our Financial 100 list (page 76) had Texas ratios above 80%. At the end of 2009, 10 did. Some of those also had high ratios of nonperforming loans and of other real estate owned (OREO) assets, as well as low ratios of tangible common equity to tangible assets.

Five of the 100 largest Tar Heel financial institutions had a ratio of nonperforming loans to total loans above 10% on Dec. 31. None did the previous year. Security Savings Bank 16.5% FNB United 16.1 Self-Help Credit Union 15.1 Bank of Asheville 10.3 Bank of Currituck 10.3 First Federal Bank 8.5 Cornerstone Bank 8.4 Parkway Bank 8.4 First Bancorp 7.6 Nantahala Bank & Trust 7.5 Source: SNL Financial Many analysts say tangible common equity ratios should be at least 5%. At year-end, 11 Financial 100 banks had ratios below that. The year before, five did. FNB United 1.97% 1st Financial Services 3.55 Waccamaw Bankshares 3.93 Community First Financial Group 4.17 BNC Bancorp 4.31 Bank of America 4.51 Yadkin Valley Financial 4.52 Southern Community Financial 4.63 Blue Ridge Savings Bank 4.65 Source: SNL Financial TEXAS RATIOS 1. BLUE RIDGE SAVINGS BANK Headquarter: Asheville Formed: 1978 Offices: 11 Assets: $223.2 million 2007 24.9% 2008 104.8% 2009 215.9% 2. FNB UNITED Headquarters: Asheboro Formed: 1907 Offices: 45 Assets: $2.1 billion 2007 17.9% 2008 82.2% 2009 211.4% 3. SECURITY SAVINGS BANK Headquarters: Southport Formed: 1911 Offices: 11 Assets: $431.2 million 2007 2.5% 2008 17.5% 2008 125.9% 4. BANK OF CURRITUCK Headquarters: Moyock Formed: 1920 Offices: 6 Assets: $197.3 million 2007 36.3% 2008 44.0% 2009 104.2% 5. NANTAHALA BANK & TRUST Headquarters: Franklin Formed: 2004 Offices: 4 Assets: $214.1 million 2007 7.1% 2008...