Local banks and credit unions show signs of stabilizing, according to industry ratings released last week.
Still, locally based Central Virginia Bank was once again one of the few banks in Virginia to receive a zero rating, the lowest score from Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.
CVB wasn’t alone at the bottom of the second-quarter ratings.
Life Line Credit Union, an $8 million institution whose members include employees and volunteers of various area medical organizations, was one of only two zero-rated credit unions in the state.
But the good news, according to Bauer, is that the nation’s banks and credit unions are mostly headed in the right direction. And the ratings of almost all local banks and credit unions remained the same as the previous quarter, according to Bauer, showing that things are at least steady.
Bauer’s ratings are based on financial information the banks and credit unions submit to federal regulators, such as capital levels, profits and non-performing assets. The agency ranks institutions using a five-star system.
Those receiving four or five stars are considered “recommended” by Bauer. Those receiving two or fewer stars are considered troubled or problematic.
Midlothian-based Bank of Virginia received a one-star “troubled” rating, the same as last quarter. Virginia Community Bank again received a two-star “problematic.”
Several local banks, including Union First Market Bank, First Capital Bank, C&F Bank and Franklin Federal Savings Bank, again received 3.5-star “good” ratings.
In addition to CVB, three Virginia banks received a zero rating, including Norfolk-based Bank of the Commonwealth, First State Bank in Danville and Millennium Bank in Sterling.
Eleven local credit unions got five stars in the second quarter, while several others received four stars. (You can see them in the chart below).
Nationwide, 62 percent of banks are recommended, up from 59 percent the previous quarter. The percentage of troubled or problematic banks dropped from 13.1 to 12.1.
These numbers are a good sign, according to Bauer, as they show the highest percentage of top rated banks since Sept. 30, 2007. The number of troubled or problematic banks stood at 902 nationwide, the fewest since the first quarter of 2009.
Only 5.2 percent of credit unions nationwide are considered troubled or problematic.
Local 5-star rated banks
Bank of McKenney
Bank of Southside Virginia
Peoples Bank of Virginia
Local 5-star rated credit unions
Argent FCU
Assurance FCU
Cadmus CU
Call FCU
Dominion CU Hopewell Chemical FCU
Kraftsman FCU
Nabisco Employees CU
New Generation FCU
Resources FCU
Vantage Point FCU
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].
Local banks and credit unions show signs of stabilizing, according to industry ratings released last week.
Still, locally based Central Virginia Bank was once again one of the few banks in Virginia to receive a zero rating, the lowest score from Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.
CVB wasn’t alone at the bottom of the second-quarter ratings.
Life Line Credit Union, an $8 million institution whose members include employees and volunteers of various area medical organizations, was one of only two zero-rated credit unions in the state.
But the good news, according to Bauer, is that the nation’s banks and credit unions are mostly headed in the right direction. And the ratings of almost all local banks and credit unions remained the same as the previous quarter, according to Bauer, showing that things are at least steady.
Bauer’s ratings are based on financial information the banks and credit unions submit to federal regulators, such as capital levels, profits and non-performing assets. The agency ranks institutions using a five-star system.
Those receiving four or five stars are considered “recommended” by Bauer. Those receiving two or fewer stars are considered troubled or problematic.
Midlothian-based Bank of Virginia received a one-star “troubled” rating, the same as last quarter. Virginia Community Bank again received a two-star “problematic.”
Several local banks, including Union First Market Bank, First Capital Bank, C&F Bank and Franklin Federal Savings Bank, again received 3.5-star “good” ratings.
In addition to CVB, three Virginia banks received a zero rating, including Norfolk-based Bank of the Commonwealth, First State Bank in Danville and Millennium Bank in Sterling.
Eleven local credit unions got five stars in the second quarter, while several others received four stars. (You can see them in the chart below).
Nationwide, 62 percent of banks are recommended, up from 59 percent the previous quarter. The percentage of troubled or problematic banks dropped from 13.1 to 12.1.
These numbers are a good sign, according to Bauer, as they show the highest percentage of top rated banks since Sept. 30, 2007. The number of troubled or problematic banks stood at 902 nationwide, the fewest since the first quarter of 2009.
Only 5.2 percent of credit unions nationwide are considered troubled or problematic.
Local 5-star rated banks
Bank of McKenney
Bank of Southside Virginia
Peoples Bank of Virginia
Local 5-star rated credit unions
Argent FCU
Assurance FCU
Cadmus CU
Call FCU
Dominion CU Hopewell Chemical FCU
Kraftsman FCU
Nabisco Employees CU
New Generation FCU
Resources FCU
Vantage Point FCU
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].