Undercapitalized is a eufamism that really means "insolvent."
It means the bank is about to have severe losses and that it doesn't have enough "capital" (enough of depositor's money) to withstand the losses.
In other words, never say in-other-words because then you might have to clarify yourself(!)
Undercapitalized = insolvent = pull your deposits out ot there immediately!
The FDIC cannot save you in this case for much longer.
