Tennessee

Tennessee has managed to escape the downturn relatively unscathed, and hasn't had a bank fail since 2002. But a new crop of undercapitalized banks and other strugglers have put 10% of the state's banks at some risk of failure.

Under orders from its regulator to improve its capital ratios, Community First Bank & Trust in Columbia, Tenn., is selling one of its 10 branches to Southern Community Bank in Tullahoma, Tenn., and could be looking to unload several more.

The Federal Deposit Insurance Corp. has ordered seven ailing community banks to raise fresh capital and directed three others with elevated loan losses to submit written plans for raising capital should credit quality weaken further.

Pinnacle Financial Partners Inc. in Nashville, Tenn., has moved a step closer toward exiting the Troubled Asset Relief Program.

NASHVILLE, Tenn. — Members of Volunteer Corporate CU approved the combination with West Virginia Corporate FCU to create a $1.5 billion corporate, one of six pending corporate marriages.

The Nasdaq stock market has notified Tennessee Commerce Bancorp Inc. in Franklin that its shares could be delisted for its failure to file timely financial reports.

WASHINGTON — A Tennessee bank owner must get prior Federal Reserve approval to pay dividends or increase debt.

With its future in doubt, the company hires investment banks to help it explore its options.

Pinnacle Financial Partners Inc. in Nashville, Tenn., reported a massive spike in third-quarter results due to the reversal of a deferred tax asset valuation.

Tennessee Valley Financial Holdings Inc. in Oak Ridge agreed to serve as a source of strength to its $173.3 million-asset TNBank, which has been operating under a consent order with it regulators since April 21.

Jefferson Bancshares Inc. of Morristown, Tenn., restated its last quarter as a loss after its take on bad investments and loans worsened.

Green Bankshares Inc. in Greenville, Tenn., reported a net loss of $12.4 million for the second quarter as it prepares to sell to North American Financial Holdings Inc.

Tennessee Commerce Bancorp Inc. in Franklin will not be required to restate its 2010 earnings after all, but it is under orders to boost its capital ratios.

The $13.5 billion-asset company said this week that it will shutter nine branches in Arkansas, eight in Mississippi — including two in its headquarters city — three in Tennessee, and one each in Texas, Alabama and Missouri.

The acquisition of a 90.1% stake in Green Bankshares would be North American Financial's sixth since the holding company was created last year to buy failed or struggling banks.

Battered by problem loans, Tennessee Commerce said it lost $3.2 million in the first quarter. By comparison, the company earned $553,000 in the fourth quarter of 2010.

The Federal Reserve Board has voted to allow Goldman Sachs Group Inc. to retain an 9.8% stake in a small Tennessee banking company. Goldman Sachs Investment Partners Master Fund LP made the investment in the $589 million-asset Avenue Financial Holdings Inc. in Nashville in 2007.

Cornerstone Bancshares Inc. in Chattanooga, Tenn., said Friday that losses narrowed 42.1% in 2010. The $440 million-asset company posted a $4.7 million loss for the year, compared with an $8.2 million loss in 2009.

The net loss at Green Bankshares Inc. in Greenville, Tenn., widened to $52.8 million in the fourth quarter from $76,000 a year earlier.

Tennessee Commerce Bancorp Inc. in Franklin said its fourth-quarter earnings fell 56% from a year earlier, to $553,000, as noninterest expenses increased.