ShoreBank has updated their online savings account to 2.15% APY, previously their savings account rate was at 2.05% APY. Although their previous rate was already quite competitive the bank is looking to raise an additional $10 – $30 million in capital, a review from the Chicago Tribune states that U.S. and state banking regulators asked the bank to “boost its capital levels, improve its asset quality and earnings, and develop a liquidity plan.”
Similar to many banks around the nation, ShoreBank was hit by bad loans. They had faced profit lost of $2.4 million in their first quarter, while a year ago their profit was $3 million in the respective period. As well as $9 million in bad loans – a hefty 500% increase in bad loans from $1.5 million. Despite all this, ShoreBank is considered by regulators as “well capitalized.”
For more details on this qualifications and requirements check out the previous post on ShoreBank’s 2.05% APY savings account rate.
