Local financial institutions held steady in the eyes of a well-known ratings firm last quarter – with one notable exception.
Midlothian-based bank Village Bank continued its climb upward in the rankings from Bauer Financial, a Florida-based company each quarter rates all federally insured banks and credit unions in the U.S. based on capital levels, profits and nonperforming assets.
Bauer’s latest ratings for the second quarter, released last week, show Village Bank earning a 3.5-star mark and moving yet another step up from the days when it was among the lowest rated banks in the state.
Bauer uses a star-rated system two stars or fewer are considered to be “troubled” or “problematic.” Those with four or five stars are considered “recommended.”
Village, in the wake of the recession when it was dealing with mounds of problem loans, was one of few Virginia-based banks that were zero-rated by Bauer.
The $422 million bank began to make a move up in 2014 and as it stabilized it raised capital, stabilized its balance sheet and returned to profitability. Those efforts culminated last month when Village was released from a so-called written agreement, a stringent pact it entered into with the Federal Reserve in 2012 in an effort to stabilize after the recession.
Each of the rest of Village’s locally based peers held steady in the Bauer ratings during the second quarter.
C&F Bank, EVB, Xenith Bank, Union Bank & Trust, Bank of McKenney and Bank of Southside Virginia once again received five stars, Bauer’s highest rating
New Horizon Bank and Essex Bank stood firm with four stars.
Joining Village in the 3.5-star club was Petersburg-based Virginia Commonwealth Bank.
The lowest rated bank in the Richmond market as of the end of the second quarter was Bank of Virginia, which scored a 3-star rating and has since been sold to First Citizens Bank out of North Carolina.
The lowest rated bank in the state – as has been the case for several years – is First State Bank in Danville.
Things were also mostly stable at Richmond’s 28 locally based credit unions.
Eleven local credit unions held steady with five-star ratings. They were: Argent Federal Credit Union; Hopewell Chemical FCU; Petersburg Fed Ref CU; Vantage Point FCU; Peoples Advantage FCU; Fort Lee FCU; Call FCU; Dominion CU; Richmond Postal CU; River Trace FCU; and Virginia CU.
The only changes on the credit union side were Glen Allen-based Partners Financial FCU rising from two stars to three, and City of Richmond-based Virginia United Methodist CU and Hopewell-based Kraftsman FCU’s drop to three and four stars, respectively.
Virginia State University FCU in South Chesterfield remained among the lowest rated credit unions in the state as one of only two of its peers to receive a zero-star rating.
Local financial institutions held steady in the eyes of a well-known ratings firm last quarter – with one notable exception.
Midlothian-based bank Village Bank continued its climb upward in the rankings from Bauer Financial, a Florida-based company each quarter rates all federally insured banks and credit unions in the U.S. based on capital levels, profits and nonperforming assets.
Bauer’s latest ratings for the second quarter, released last week, show Village Bank earning a 3.5-star mark and moving yet another step up from the days when it was among the lowest rated banks in the state.
Bauer uses a star-rated system two stars or fewer are considered to be “troubled” or “problematic.” Those with four or five stars are considered “recommended.”
Village, in the wake of the recession when it was dealing with mounds of problem loans, was one of few Virginia-based banks that were zero-rated by Bauer.
The $422 million bank began to make a move up in 2014 and as it stabilized it raised capital, stabilized its balance sheet and returned to profitability. Those efforts culminated last month when Village was released from a so-called written agreement, a stringent pact it entered into with the Federal Reserve in 2012 in an effort to stabilize after the recession.
Each of the rest of Village’s locally based peers held steady in the Bauer ratings during the second quarter.
C&F Bank, EVB, Xenith Bank, Union Bank & Trust, Bank of McKenney and Bank of Southside Virginia once again received five stars, Bauer’s highest rating
New Horizon Bank and Essex Bank stood firm with four stars.
Joining Village in the 3.5-star club was Petersburg-based Virginia Commonwealth Bank.
The lowest rated bank in the Richmond market as of the end of the second quarter was Bank of Virginia, which scored a 3-star rating and has since been sold to First Citizens Bank out of North Carolina.
The lowest rated bank in the state – as has been the case for several years – is First State Bank in Danville.
Things were also mostly stable at Richmond’s 28 locally based credit unions.
Eleven local credit unions held steady with five-star ratings. They were: Argent Federal Credit Union; Hopewell Chemical FCU; Petersburg Fed Ref CU; Vantage Point FCU; Peoples Advantage FCU; Fort Lee FCU; Call FCU; Dominion CU; Richmond Postal CU; River Trace FCU; and Virginia CU.
The only changes on the credit union side were Glen Allen-based Partners Financial FCU rising from two stars to three, and City of Richmond-based Virginia United Methodist CU and Hopewell-based Kraftsman FCU’s drop to three and four stars, respectively.
Virginia State University FCU in South Chesterfield remained among the lowest rated credit unions in the state as one of only two of its peers to receive a zero-star rating.