According to the FDIC, credit union owned Town North Bank had atier one capital ratio of only 4.05% as of March 31, the lastquarter before the bank sold its card processing division, TNB CardServices.

The bank completed a sale of TNB Card Services to Fifth ThirdProcessing Solutions on July 6 and announced it July 7.

A spokesman for the FDIC said that while every bank's capitalrequirements differed according to risk, the insurer, "generallyspeaking" considered a bank with more than $500 million in assetsto be under capitalized when it's tier one capital ratio fell to 4%or less. TNB had assets of $954 million as of March 31.

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