Tier got into south Florida on toward the end of the bust. The cowboys came to South beach and played around with shady developers who sold them the goods. Tier is hurting from this because they had not been taken so badly before. However, as i said, they did not get as heavy into these loans as they even believe.
IMO, they have over written down loans, perhaps they will take further write downs, but IMO, they may have to write a portion of it back on the books when the smoke clears.
As for a comment that they can't get loans, I beg to differ this comment for all banks. The Strret had it's fun and stole all the lending from the banks for the past 10 years with ABS, and not only stole loans from banks, but crammed down rates and yields. Now the Street is paying for it and many believe that its pay back time. The banks left standing are going to raise rates and yields and make a killing as the street is all dried up. The money supply is lower , but the demand has not.
Bottom line, buy hammered small and mid size bank stocks that have been hammered, as eventually once they are healed, they will set the rates and yields, just like the good ole days..IMO