The health of Richmond’s banking market held steady during the first quarter, according to a report this month from a well-known bank ratings firm.
The latest measurements from Bauer Financial, a Florida firm that rates all federally insured banks and credit unions in the U.S., showed stability among local banks based on their first quarter performance.
VCB recently opened a branch on the West End.
The area’s highest-rated local banks were Bank of Southside Virginia, Bank of McKenney, C&F Bank, EVB, Union Bank & Trust and Xenith Bank, all of which held firm with 5-star “superior” ratings from Bauer, based on their first quarter financials.
Bauer’s ratings are based on an institution’s capital levels, profits and nonperforming assets. Banks with two stars or fewer are considered to be “troubled” or “problematic.” Those with four or five stars are considered “recommended.”
Glen Allen-based Essex Bank again received a four-star “excellent” rating. Petersburg-based Virginia Commonwealth Bank, which this week opened a new branch in the West End, held steady with a 3.5-star “good” rating.
Village Bank for the second consecutive quarter received a 3-star “adequate” rating, in a further sign of stability for the Midlothian bank that for years was in the doldrums of Bauer’s measurements.
The only two blips in the local rankings were Midlothian-based Bank of Virginia’s drop from four stars to three and Powhatan-based New Horizon Bank falling from five stars to four.
Other regional banks also showed steadiness. TowneBank, Middleburg Bank and Park Sterling held firm at five stars, while Kilmarnock-based Chesapeake Bank jumped up from four stars to five. Chesapeake’s river country neighbor Bank of Lancaster kept its 4-star rating.
Continuing the trend, the bigger super-regional and national competitors with a presence in Richmond held their previous ratings. BB&T and First Tennessee received five stars, while SunTrust, Wells Fargo, Bank of America and M&T Bank kept their 4-star ratings during the first quarter.
Bauer also rates the credit unions doing business in Richmond. Each of the 28 federally insured credit unions headquartered in the local market saw no change in ratings during the first quarter. Among those, 12 local credit unions held on to their 5-star ratings from Bauer and nine held their 4-star ratings.
The 12 local 5-star credit unions were: Virginia Credit Union, Argent Federal Credit Union, Hopewell Chemical FCU, Kraftsman FCU, Petersburg Fed Ref CU, Vantage Point FCU, Peoples Advantage FCU, Fort Lee Federal CU, Call FCU, Dominion CU, Richmond Postal CU and River Trace FCU.
At the other end of Bauer’s spectrum, Virginia State University Federal Credit Union remained at zero stars. It’s one of two in the state to receive Bauer’s lowest rating.
The $8.3 million institution has 2,200 members. Despite turning a small profit in the first quarter, the credit union still had the lowest capital ratio and one of the highest levels of nonperforming loans among the group.
The health of Richmond’s banking market held steady during the first quarter, according to a report this month from a well-known bank ratings firm.
The latest measurements from Bauer Financial, a Florida firm that rates all federally insured banks and credit unions in the U.S., showed stability among local banks based on their first quarter performance.
VCB recently opened a branch on the West End.
The area’s highest-rated local banks were Bank of Southside Virginia, Bank of McKenney, C&F Bank, EVB, Union Bank & Trust and Xenith Bank, all of which held firm with 5-star “superior” ratings from Bauer, based on their first quarter financials.
Bauer’s ratings are based on an institution’s capital levels, profits and nonperforming assets. Banks with two stars or fewer are considered to be “troubled” or “problematic.” Those with four or five stars are considered “recommended.”
Glen Allen-based Essex Bank again received a four-star “excellent” rating. Petersburg-based Virginia Commonwealth Bank, which this week opened a new branch in the West End, held steady with a 3.5-star “good” rating.
Village Bank for the second consecutive quarter received a 3-star “adequate” rating, in a further sign of stability for the Midlothian bank that for years was in the doldrums of Bauer’s measurements.
The only two blips in the local rankings were Midlothian-based Bank of Virginia’s drop from four stars to three and Powhatan-based New Horizon Bank falling from five stars to four.
Other regional banks also showed steadiness. TowneBank, Middleburg Bank and Park Sterling held firm at five stars, while Kilmarnock-based Chesapeake Bank jumped up from four stars to five. Chesapeake’s river country neighbor Bank of Lancaster kept its 4-star rating.
Continuing the trend, the bigger super-regional and national competitors with a presence in Richmond held their previous ratings. BB&T and First Tennessee received five stars, while SunTrust, Wells Fargo, Bank of America and M&T Bank kept their 4-star ratings during the first quarter.
Bauer also rates the credit unions doing business in Richmond. Each of the 28 federally insured credit unions headquartered in the local market saw no change in ratings during the first quarter. Among those, 12 local credit unions held on to their 5-star ratings from Bauer and nine held their 4-star ratings.
The 12 local 5-star credit unions were: Virginia Credit Union, Argent Federal Credit Union, Hopewell Chemical FCU, Kraftsman FCU, Petersburg Fed Ref CU, Vantage Point FCU, Peoples Advantage FCU, Fort Lee Federal CU, Call FCU, Dominion CU, Richmond Postal CU and River Trace FCU.
At the other end of Bauer’s spectrum, Virginia State University Federal Credit Union remained at zero stars. It’s one of two in the state to receive Bauer’s lowest rating.
The $8.3 million institution has 2,200 members. Despite turning a small profit in the first quarter, the credit union still had the lowest capital ratio and one of the highest levels of nonperforming loans among the group.