JUPITER, Florida (January 31, 2011) — On Friday, regulators closed four banks: FirsTier Bank, Broomfield, Colorado: First Community Bank, Taos, New Mexico; First State Bank, Camargo, Oklahoma and Evergreen State Bank, Stoughton, Wisconsin. This brings the total number of U.S. bank and thrift failures to eleven for 2011.
FirsTier Bank, Broomfield, Colorado, located north of Denver, with assets of just over $781 million at September 30, 2010 had been rated E- (“Very Weak”) for the last four quarters by Weiss Ratings and was first identified as “Weak” in July 2009 based on first quarter 2009 data. The bank reported a loss of more than $16 million through September 30, 2010. FirsTier had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.24% and 2.90%, respectively. Nonperforming loans made up 24% of its loan portfolio. To protect the insured depositors, the FDIC created the DINB of Louisville, a new depository institution chartered by the OTS and insured by the FDIC to take over the operations of FirsTier Bank. The new institution will remain open until Monday, February 28, 2011, to allow depositors access to their insured funds and time to move accounts to other insured institutions.
First Community Bank, Taos, New Mexico, north of Santa Fe, with assets of $2.3 billion at September 30, 2010 had been rated E- (“Very Weak”) for the last three quarters by Weiss Ratings and was first identified as “Weak” in July 2008 based on first quarter 2008 data. The bank reported a loss of $98 million through September 30, 2010. First Community had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.73% and 4.01%, respectively. Nonperforming loans represented 15.7% of its loan portfolio. U.S. Bank, NA, based in Cincinnati, Ohio with assets of $285.7 billion and a Weiss Rating of “D” will assume the deposits of First Community.
First State Bank, Camargo, Oklahoma, northwest of Oklahoma City, with assets of just over $43 million at September 30, 2010 had been rated C- (“Fair”) for the last three quarters by Weiss Ratings, however, it was first identified as “Weak” in January 2008 based on third quarter 2007 data. The bank reported a profit of over $665 million through September 30, 2010. First State Bank had below industry average Tier 1 and Risk-Based Capital ratios of 8.06% and 9.72%, respectively. Bank 7, based in Oklahoma City, Oklahoma, with assets of $130.7 million and a Weiss Rating of “B-” will assume the deposits of First State Bank.
Evergreen State Bank, Stoughton, Wisconsin, south of Madison, with assets of just over $246 million at September 30, 2010 had been rated E- (“Very Weak”) for the last three quarters by Weiss Ratings and was first identified as “Weak” in July 2007 based on first quarter 2007 data. The bank reported a loss of more than $21 million through September 30, 2010. Evergreen had adequate FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 0.87% and 2.51%, respectively. Nonperforming loans made up just over 11% of its loan portfolio. McFarland State Bank based in McFarland, Wisconsin, with assets of $360.5 million and a Weiss Rating of “C-” will assume the deposits of Evergreen State Bank.
Weiss Ratings, the nation’s independent provider of bank and insurance company ratings, accepts no payments for its ratings from rated institutions. It also distributes independent ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.
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