JUPITER, Florida (April 11, 2011) — On Friday, regulators closed two banks: Nevada Commerce Bank, Las Vegas, Nevada and Western Springs National Bank & Trust, Western Springs, Illinois. This brings the total number of U.S. bank and thrift failures to 28 for 2011, behind last year’s pace of 42.
Nevada Commerce Bank, Las Vegas, Nevada, with assets of $144.9 million at December 31, 2010 had been rated E- (“Very Weakâ€) for the last seven quarters by Weiss Ratings and was first identified as “Weak†in January 2009 based on third quarter 2008 data. It reported a loss of more than $5.4 million through December 31, 2010. Nevada Commerce Bank had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 2.26% and 4.49%, respectively. Nonperforming loans represented 10.4% of its loan portfolio. City National Bank, Los Angeles, CA, with assets of over $2 billion and a Weiss Rating of “C+†will assume the deposits of Nevada National Bank.
Western Springs National Bank & Trust, Western Springs, Illinois, located west of Chicago, with assets of $186.8 million at December 31, 2010 had been rated E- (“Very Weakâ€) for the last four quarters by Weiss Ratings and was first identified as “Weak†in June 2007 based on first quarter 2007 data. It reported a loss of more than $12.1 million through December 31, 2010. Western Springs had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 1.71% and 3.45%, respectively. Nonperforming loans represented 19.2% of its loan portfolio. Heartland Bank & Trust Co., Bloomington, Illinois, with assets of over $1.6 billion and a Weiss Rating of “B-†will assume the deposits of Western Springs National Bank & Trust.
Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company financial strength ratings, accepts no payments for its ratings from rated institutions. It also distributes independent investment ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.
