Weiss Identified McIntosh State Bank and First Commercial Bank as “Weak” More Than Three Years Prior to Failure

JUPITER, Florida (June 20, 2011) — On Friday, regulators closed two banks: McIntosh State Bank, Jackson, Georgia and First Commercial Bank of Tampa Bay, Tampa, Florida.  This brings the total number of U.S. bank and thrift failures to 47 for 2011, behind last year’s pace of 83.  Georgia leads the nation with 13 failures, while Florida is second with six bank closings this year.

Of the 47 institutions that have failed in 2011, 45, or 96%, were rated E- (“Very Weak”) by Weiss at the time of failure.  Weiss rates 479 more banks and thrifts “Very Weak” with a rating of E+, E, or E-.  Consumers can view the full list at www.weissratings.com. 

McIntosh State Bank, Jackson, Georgia, with assets of $339.9 million at March 31, 2011 had been rated E- (“Very Weak”) for eight quarters by Weiss Ratings and was first identified as “Weak” in December 2007. It reported a loss of more than $2.4 million for the period ended March 31, 2011.  McIntosh State had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 0.88% and 2.54%, respectively.  Nonperforming loans represented 25.1% of its loan portfolio. Hamilton State Bank, Hoschton, Georgia, with assets of $283.4 million and a Weiss Rating of D+, will assume the deposits of McIntosh State Bank. 

First Commercial Bank of Tampa Bay, Tampa, Florida, with assets of $98.6 million at March 31, 2011 had been rated E- (“Very Weak”) for three quarters by Weiss Ratings and was first identified as “Weak” in September 2007. It reported a loss of more than $525 thousand for the period ended March 31, 2011.  First Commercial had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 1.55% and 3.35%, respectively.  Nonperforming loans represented 16.1% of its loan portfolio.  Stonegate Bank, Fort Lauderdale, Florida, with assets of $761.8 million and a Weiss Rating of B-, will assume the deposits of First Commercial Bank of Tampa Bay. 

Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company financial strength ratings and sovereign debt 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.