UPDATE: Sterne Agee Downgrading Tennessee Commerce Bancorp (TNCC)

Sterne Agee is downgrading shares of Tennessee Commerce Bancorp, Inc. TNCC to Neutral. In a note to investors, Sterne Agee writes, "We are lowering our rating to Neutral due to recent disclosures regarding pending regulatory actions and the resulting uncertainty regarding capital needs, tangible book value and potential dilution. We believe the near-term focus has shifted to credit-mark adjusted TBV (which we estimate near ~$2.00 in an acquisition scenario) rather than earning power, and we expect this dynamic to persist until clarity on the regulatory situation emerges. The timing is unknown, although it appears likely that eventual regulatory enforcement action will be more punitive than previously thought." Shares of TNCC are down 12 cents to $3.37, a loss of 3.44%.