Bank of Virginia grabs another rung

bauerfinancialOne local bank continued to try to climb its way out of the doldrums, according to ratings released this month, while another fell further.

Midlothian-based Bank of Virginia, once one of the lowest rated banks in the state, jumped up a notch.

Meanwhile Village Bank, battered by high levels of bad loans, dropped to a more unfavorable status according to Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.

Bauer’s ratings are based on financial information 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.

The Richmond market has some strongly rated banks. It’s home to three five-star “superior” rated banks, including Peoples Bank of Virginia, Bank of McKenney and Bank of Southside Virginia, according to the latest rankings, which measured financials from Dec. 31.

Peoples Bank’s strong status helped it lure an acquirer last month.

Three others, C&F Bank, Union First Market Bank and the upstart New Horizon Bank received four-star “excellent” ratings.

The two-year old Powhatan-based New Horizon jumped out of unrated startup status for the first time to a four-star rating.

Bank of Virginia, which in 2010 received a zero-star rating from Bauer, has risen to a two-star “problematic” rating. Bank of Virginia’s standing has improved at the hands of a new management team that bought and took over the bank in 2010.

Village Bank was downgraded to a one-star “troubled” rating from two stars. It had been at the three-star “adequate” level in the second quarter of last year.

Village and Bank of Virginia are among a handful of local banks under written agreements with regulators.

Virginia Commonwealth Bank in Petersburg, also struggling with high levels of bad loans, fell to two stars from three.

Powhatan-based Central Virginia Bank joined Village by holding steady at one star.

There are three zero-rated banks in Virginia: Bank of Hampton Roads, First State Bank in Danville and Millennium Bank in Sterling.

Bauer also rates credit unions, and the latest report showed that Richmond remains home to the lowest rated credit union in Virginia.

Life Line Credit Union was the only credit union in the state with a zero-star rating. It has been at that level for at least two years.

Life Line is an $8 million institution whose members include employees and volunteers of area medical organizations.

There were 10 local credit unions that received five stars: Cadmus Credit Union, Call Federal Credit Union, Dominion CU, Nabisco Employees CU, New Generations FCU, RF&P Richmond FCU, Resources FCU, Hopewell Chemical FCU, Kraftsman FCU and Vantage Point FCU.

Fourteen others received four stars.

bauerfinancialOne local bank continued to try to climb its way out of the doldrums, according to ratings released this month, while another fell further.

Midlothian-based Bank of Virginia, once one of the lowest rated banks in the state, jumped up a notch.

Meanwhile Village Bank, battered by high levels of bad loans, dropped to a more unfavorable status according to Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.

Bauer’s ratings are based on financial information 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.

The Richmond market has some strongly rated banks. It’s home to three five-star “superior” rated banks, including Peoples Bank of Virginia, Bank of McKenney and Bank of Southside Virginia, according to the latest rankings, which measured financials from Dec. 31.

Peoples Bank’s strong status helped it lure an acquirer last month.

Three others, C&F Bank, Union First Market Bank and the upstart New Horizon Bank received four-star “excellent” ratings.

The two-year old Powhatan-based New Horizon jumped out of unrated startup status for the first time to a four-star rating.

Bank of Virginia, which in 2010 received a zero-star rating from Bauer, has risen to a two-star “problematic” rating. Bank of Virginia’s standing has improved at the hands of a new management team that bought and took over the bank in 2010.

Village Bank was downgraded to a one-star “troubled” rating from two stars. It had been at the three-star “adequate” level in the second quarter of last year.

Village and Bank of Virginia are among a handful of local banks under written agreements with regulators.

Virginia Commonwealth Bank in Petersburg, also struggling with high levels of bad loans, fell to two stars from three.

Powhatan-based Central Virginia Bank joined Village by holding steady at one star.

There are three zero-rated banks in Virginia: Bank of Hampton Roads, First State Bank in Danville and Millennium Bank in Sterling.

Bauer also rates credit unions, and the latest report showed that Richmond remains home to the lowest rated credit union in Virginia.

Life Line Credit Union was the only credit union in the state with a zero-star rating. It has been at that level for at least two years.

Life Line is an $8 million institution whose members include employees and volunteers of area medical organizations.

There were 10 local credit unions that received five stars: Cadmus Credit Union, Call Federal Credit Union, Dominion CU, Nabisco Employees CU, New Generations FCU, RF&P Richmond FCU, Resources FCU, Hopewell Chemical FCU, Kraftsman FCU and Vantage Point FCU.

Fourteen others received four stars.

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Rick Bishop
Rick Bishop
12 years ago

Village Bank is a great bank. Their customer service is exceptional.

I think they’ll be able to hang on. The REO issue just needs to be resolved and, perhaps, cut some branch offices.

Their technology is adequate but needs a little upgrading.