Nearly half NC’s state-chartered banks ‘troubled’

CHARLOTTE, N.C. (AP) – North Carolina banking regulators say nearly half of the 86 state-chartered banks are troubled institutions.

The Charlotte Observer reported Monday the 40 banks considered troubled are up from 23 in October. There are typically only two or three on the list.

Regulators are barred from disclosing individual bank names or ratings to prevent a run on deposits that would prevent banks from solving problems.

Banks have been hurt by falling real estate values, delinquent loans and weak loan demand.

State Banking Commissioner Joseph Smith says he expects few banks will fail, if any.

A Virginia bank announced plans Friday to buy one of the seven most distressed North Carolina banks, The Bank of Currituck.

Information from: The Charlotte Observer

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