Although Richmond is still home to two of the lowest rated banks in the state, one bank managed to work its way out of the cellar, according to ratings released last week.
Central Virginia Bank and Virginia Business Bank were among the five banks in Virginia to receive a zero rating for the fourth quarter – the lowest score from Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.
The other zero-rated banks in the state include Bank of the Commonwealth in Norfolk, First State Bank in Danville and Millenium Bank in Sterling.
But there was some good news for Bank of Virginia. After securing much needed capital during the fourth quarter, the Midlothian-based bank climbed its way out of a zero-rating and improved to a one-star rating, according to Bauer’s analysis. One star is still considered “troubled,” according to Bauer.
Bauer’s ratings are based on financial information the banks and credit unions submitted to federal regulators from the fourth quarter and include capital levels, profits and non-performing assets. The agency ranks institutions using a five-star system.
A local credit union also worked its way out of Bauer’s zero-star club.
Life Line Credit Union, a $9 million institution whose members include employees and volunteers of various area medical organizations, such as Bon Secours Richmond Health Corp., Central Virginia Health Network and Virginia Health Source, moved up a notch to a one-star rating. It had been the only credit union in Virginia to receive a zero-star rating in the previous quarter.
For Central Virginia Bank and Virginia Business Bank, this is the third consecutive quarter they each received a zero rating.
Both banks are under written agreements with regulators to work out their issues, mostly involving troubled loans.
CVB was previously working a deal to raise capital until it postponed those efforts.
After its plans to recapitalize didn’t pan out, Virginia Business Bank recently received a notice from regulators that it must find fresh capital or a merger partner in 90 days. Read more about that here.
Some other local banks saw their ratings fluctuate during the fourth quarter. Midlothian-based Village Bank improved its problematic two-star rating to three-star adequate rating.
EVB dropped from three stars to two after a big loss in the fourth quarter. It also entered into a written agreement in February. Read about that here.
On a larger scale, 50.4 percent of the financial institutions in Virginia are considered “recommended,” according Bauer’s ratings, those having received a four- or five-star rating.
Around 11 percent are considered troubled or problematic, that’s up slightly from 10.9 percent a year ago but still below the nationwide average of 12.8 percent.
That compares with states like Arizona, where 45 percent of its financial institutions received the troubled or problematic ratings.
On a national level, 38 percent of the nation’s banks have earned a five-star rating, and nearly 6 percent of the nation’s 7,646 banks improved their ratings from the previous quarter.
However, another 6 percent saw their star-rating drop.
About 60 percent of all banks in the U.S. received either 4 or 5 stars, an improvement of 5 percent since the end of 2008.
Local ‘recommended’ four- and five-star banks
Peoples Bank of Virginia
Bank of McKenney
Trust Company of Virginia
(several others received a 3 ½ star “good” rating)
Local recommended four- and five-star credit unions
Resources Federal Credit Union
New Generations FCU
Nabisco Employees CU
Dominion CU
Call FCU
Cadmus CU
Vantage Point FCU
Hopewell Chemical FCU
Dupont Fibers FCU
Virginia CU
Virginia Boxer FCU
Partners Financial FCU
Henrico FCU
Kraftsman FCU
Chestefield FCU
Assurance FCU
Entrust FCU
RF&P Richmond FCU
Richmond Fire Dept. CU
Richmond Postal CU
Spruance Cellophane CU
Although Richmond is still home to two of the lowest rated banks in the state, one bank managed to work its way out of the cellar, according to ratings released last week.
Central Virginia Bank and Virginia Business Bank were among the five banks in Virginia to receive a zero rating for the fourth quarter – the lowest score from Bauer Financial, a Florida-based firm that rates all federally insured financial institutions each quarter.
The other zero-rated banks in the state include Bank of the Commonwealth in Norfolk, First State Bank in Danville and Millenium Bank in Sterling.
But there was some good news for Bank of Virginia. After securing much needed capital during the fourth quarter, the Midlothian-based bank climbed its way out of a zero-rating and improved to a one-star rating, according to Bauer’s analysis. One star is still considered “troubled,” according to Bauer.
Bauer’s ratings are based on financial information the banks and credit unions submitted to federal regulators from the fourth quarter and include capital levels, profits and non-performing assets. The agency ranks institutions using a five-star system.
A local credit union also worked its way out of Bauer’s zero-star club.
Life Line Credit Union, a $9 million institution whose members include employees and volunteers of various area medical organizations, such as Bon Secours Richmond Health Corp., Central Virginia Health Network and Virginia Health Source, moved up a notch to a one-star rating. It had been the only credit union in Virginia to receive a zero-star rating in the previous quarter.
For Central Virginia Bank and Virginia Business Bank, this is the third consecutive quarter they each received a zero rating.
Both banks are under written agreements with regulators to work out their issues, mostly involving troubled loans.
CVB was previously working a deal to raise capital until it postponed those efforts.
After its plans to recapitalize didn’t pan out, Virginia Business Bank recently received a notice from regulators that it must find fresh capital or a merger partner in 90 days. Read more about that here.
Some other local banks saw their ratings fluctuate during the fourth quarter. Midlothian-based Village Bank improved its problematic two-star rating to three-star adequate rating.
EVB dropped from three stars to two after a big loss in the fourth quarter. It also entered into a written agreement in February. Read about that here.
On a larger scale, 50.4 percent of the financial institutions in Virginia are considered “recommended,” according Bauer’s ratings, those having received a four- or five-star rating.
Around 11 percent are considered troubled or problematic, that’s up slightly from 10.9 percent a year ago but still below the nationwide average of 12.8 percent.
That compares with states like Arizona, where 45 percent of its financial institutions received the troubled or problematic ratings.
On a national level, 38 percent of the nation’s banks have earned a five-star rating, and nearly 6 percent of the nation’s 7,646 banks improved their ratings from the previous quarter.
However, another 6 percent saw their star-rating drop.
About 60 percent of all banks in the U.S. received either 4 or 5 stars, an improvement of 5 percent since the end of 2008.
Local ‘recommended’ four- and five-star banks
Peoples Bank of Virginia
Bank of McKenney
Trust Company of Virginia
(several others received a 3 ½ star “good” rating)
Local recommended four- and five-star credit unions
Resources Federal Credit Union
New Generations FCU
Nabisco Employees CU
Dominion CU
Call FCU
Cadmus CU
Vantage Point FCU
Hopewell Chemical FCU
Dupont Fibers FCU
Virginia CU
Virginia Boxer FCU
Partners Financial FCU
Henrico FCU
Kraftsman FCU
Chestefield FCU
Assurance FCU
Entrust FCU
RF&P Richmond FCU
Richmond Fire Dept. CU
Richmond Postal CU
Spruance Cellophane CU