Stoneham Savings Bank Stoneham MA

Stoneham Savings Bank, Stoneham, MA entered to a consent order with the FDIC 1/26/2010 which allowed them to get on the problem bank list.  The reasons cited were incompetent management and inadequate capital among other things.   They have the distinction of being the 3rd worst bank in Massachusetts with a Texas ratio of 69%.   The bank has been in business since 1855 and the current management team is doing a good job of running it into the ground.

This is the worst capitalized bank in the state with a total tier 1 risk based capitalization of 7.74%, which is below the 8% requirement.

At FYE 12/31/10 NOI was ($15,750M), down from ($9,219M) in 2009.  The efficiency ratio was a pathetic 131%.  They might want to consider closings down some of those 10 branches.

The equity position is down 52% since 2008.  However, this helped improve the return on equity to (19%) in 2010 down from (29%) in 2009.

The company has $10MM in OREO and $7MM in non accrual.  The allowance for losses is $2MM.  These problem loans could effectively wipe out the remaining equity.

The company was cited for having negative earning, asset quality and capital.  What else is there?

They are probably technically insolvent, the question is why hasn’t the FDIC shut this thing down?

Do you have money is this disaster because the FDIC is also insolvent.

Check out the website, it is under construction?

While the bank is under destruction.

The website is coming soon, so is Armageddon.

They have a pretty savvy  website for your on line banking.

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