Tennessee

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.