I understand what your saying but at the same time they have enough liquidity to get through this rough patch. I still believe that people in the rural community have strong ties to there local banks and it is one sector of the economy that is doing well.
Enough liquidity? They are barely over the minimum threshold for under capitalized. If they have one more "bad" quarter due to OREO losses or have to take "extra" provision, they won't stay adequately capitalized. Unless they shrink further which could help them maintain capital levels.
Your comments on agriculture and auto is accurate. But your not looking deep enough at their recent 10K. Nonperforming loans are down. But how did they accomplish it? They aren't back to performing. They charged them off hence LARGE reduction to allowance. Did you notice nonperforming asset ratio? Hmmmm about same as before ... why is that?
Oh they moved these nonperforming loans to OREO. So now if they haven't valued them properly when they took the chargeoff because they are being optimistic about selling the property then the loss will be dollar for dollar off of profit ...
Kind of like the $1 million or so adjustment they took in 2nd quarter to sell something.
Also, go look at the new disclosures for loans .... $0.12 on the dollar for nonperforming loans in construction and development loans. Strange .... last time I checked this is the area of loan portfolio with greatest duress and they are reserving $0.12 for it when most other financial institutions are reserving $0.20 to $0.30.
Centrue (formally Union Bank )with the majority of the banks in the farming communities should see some serious upside in busines activity in the next year or so...I think this will lead to renewed profitablity...farmers like to buy and they have the backing to take out loans!