Florida ranks as the worst state for bank safety, while West Virginia ranks the best, according to a study released Thursday by bank rating agency Weiss Ratings of Jupiter.
More than 79 percent of banks and thrifts headquartered in Florida are considered weak, receiving a Weiss Financial Strength rating of D+ or lower, based on their capital, earnings, asset quality and liquidity, the company said. That tops Arizona, where nearly 72 percent of state-based banks and thrifts are considered weak, and Georgia, where almost 68 percent are rated as weak. Weiss said.
Nationwide, 34.4 percent of banks and thrifts Weiss rates are considered weak or very weak. That means Florida holds more than double the U.S. average rate for vulnerable banks, the report said.
“Many of the weak banks will probably avoid failure,” company chairman Martin D. Weiss said, estimating just 6 percent of all banks and thrifts rated weak nationwide are likely to fail.
“However, we feel that, whether they ultimately fail or not, all harbor weaknesses that imply vulnerability to adverse financial or economic conditions,” Weiss said.
In Florida, the Weiss study found that on average, 5 percent of banks and thrifts have failed each year since 2008. Last year, regulators shut and sold 29 banks based in Florida, more than any other state.
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