By Becky Yerak |
ShoreBank’s capital deficiency worsened in the first quarter, and the
Chicago-based lender to hard-hit areas now needs to raise at least $179
million to meet targets set out in March by state and U.S. banking
regulators.

In March, ShoreBank was effectively ordered to raise $158.7 million, but in light of newly released first-quarter financial results, it finds itself in an even bigger capital hole and now must raise even more.
 
On Friday afternoon the undercapitalized bank disclosed it had lost another $17 million in the first quarter. Financial records released since then show that its tier 1 capital levels have fallen from $43.5 million as of Dec. 31 to $26.3 million as of March 31. Regulators are asking ShoreBank that it keep a Tier 1 capital ratio as a percentage of total assets of at least 9 percent.
 
The bank has been trying to raise more than $200 million. It needs to raise private capital before it can qualify for about $70 million it’s seeking from the U.S. Treasury Department.