By Denny Deady | Published Thursday, March 26, 2009
BauerFinancial, Inc., the Florida bank rating firm, has updated its ratings, based on Dec. 31, 2008 data and has given two Wise County institutions it's highest rating.
A superior rating of five stars was given North Texas Bank and DATCU Credit Union in Decatur.
Other ratings by the firm are four stars, excellent; three and a half stars, good; three stars, adequate; two stars, problematic; one star, troubled and zero, the lowest ranking given.
Earning four stars in Wise County were First State Bank, with branches in Chico, Bridgeport, Runaway Bay and Paradise; and Legend Bank, with locations in Decatur and Alvord and Woodhaven Bank in Rhome.
Banks receiving the three-star rating of adequate were Wells Fargo with branches in Decatur, Rhome and Boyd and First National Bank of Jacksboro with a branch in Runaway Bay.
Citibank in Decatur and Bridgeport received two stars. The Community Bank in Bridgeport was not rated as it is labeled a start-up by Bauer.
Financial data is compiled for U.S. banks and thrifts from call report data to federal regulators. All institutions are subject to federal regulatory capital requirements, but those requirements vary among institutions and are dependent on many factors. In general, institutions are required to maintain a tangible capital ratio of at least 4 percent, a tier 1 risk-based capital ratio of at least 4 percent and a total risk-based capital ratio of at least 8 percent
In addition to the capital ratio, some other criteria used to determine the star rating includes profitability/loss trend, evaluating the level of delinquent loans, chargeoffs and repossessed assets, the market versus book value of the investment portfolio, regulatory supervisory agreements, the community reinvestment rating, historical data and liquidity.
Financial data is compiled for credit unions as reported to the National Credit Union Administration, the governing body for credit unions. Relevant data includes capital, historical trends, loan delinquencies, differences in the book and market values of the investment portfolio, profitability, repossessed assets, reserves, charge-offs, regulatory compliance and asset quality.
