Tennessee

Several banks rushed to repay investments under the Troubled Asset Relief Program in December, but hundreds head into the new year desperate for an exit strategy, even if it means selling.

BankEast in Knoxville, Tenn., has received a prompt corrective action directive from the Federal Reserve due to its undercapitalized status.

It was another busy — and costly — night for regulators in the Southeast. Of the nation's six failures Friday — bringing the year's total to 157 — three were in Georgia and one was in Florida, continuing the onslaught the two states have suffered in the crisis.

Community Trust Bancorp Inc. in Pikeville, Ky., completed its purchase of LaFollette National Corp. in LaFollette, Tenn., the companies announced.

Under an informal agreement with regulators, Green Bankshares Inc. in Greeneville, Tenn., has suspended dividend payments, even those owed to the Treasury Department.

The Federal Reserve issued enforcement actions Tuesday against the bank holding companies First Security Group Inc. and Butte State Co.

MidSouth Bank in Murfreesboro, Tenn., was well capitalized at the end of the second quarter and the Federal Reserve wants to make sure it stays that way.

Pinnacle Financial Partners Inc. in Nashville said Wednesday that it lost $27.8 million in the second quarter after reducing the value of some deferred tax assets.

BancTenn Corp. last week filed an application with the Federal Reserve to form a bank holding company in order to acquire up to 20% of a commercial bank in North Carolina.

The $3.2 billion-asset company announced late Tuesday that it had agreed to buy the privately held LaFollette First National Corp. for $16.1 million in cash, or $650 a share, about 1.05 times LaFollette's tangible book value.

NASHVILLE — For community bankers trying to figure out how they will make money going forward, the next six months are pivotal. That is the time to acknowledge and fix asset-quality problems and line up capital to finance expansion when the economy recovers.

As a result, Gulf Coast bankers are optimistic about the potential for new business stemming from the recovery effort after the recent oil spill.

The Federal Deposit Insurance Corp.'s board voted Tuesday to extend by six months its program offering unlimited deposit insurance for business accounts, a sign that it remains concerned about the health of community banks.

The Federal Reserve Bank of St. Louis announced Tuesday it had entered into a written agreement with BankTennessee Bancshares Inc. and its subsidiary to improve its loan quality and tighten lending standards.

Regulators, with their reputations on the line and anxiety about the future, are forcing some banks to hold on to much of the capital. In recent months, some banks that wanted to fully repay the Troubled Asset Relief Program were allowed to return a fraction.

Green Bankshares said "no thanks" to a major shareholder's unsolicited offer to inject up to $40 million of fresh capital into the company so it can buy failed banks.