June 15, 2017: New bank and credit union star-ratings are now available from BAUERFINANCIAL, Inc., Coral Gables, FL, the nation’s leading independent bank rating firm. Star-ratings are assigned on a scale of zero to five-stars with five being the strongest and reflect the overall financial health of the institution.
The 131 banks currently included on Bauer’s Troubled and Problematic Bank Report (rated 2-Stars or below) represent the smallest number since 2007, down considerably from a peak of 1,097 in the fourth quarter of 2009. Total assets of Bauer’s T&P banks now stand at $28.3 billion. Arizona and Georgia have the highest bank percentages relegated to the list with 11.8% and 11.7%, respectively. New Jersey is third with 8.2% of its banks rated 2-Stars or below.
At the opposite end, over 80% of both banks & credit unions are now recommended by the rating firm (i.e. rated 5-Stars or 4-Stars). Eight states have earned the right to claim they are not the headquarter state of any bank or credit union rated 2-stars or below (although they may have branches there). These states are: Alaska, Delaware, Idaho, Maine, Mississippi, Nevada, Vermont and Washington.
Why is it important to know the rating of your bank?
Fact: All banks that have failed in the past six years were rated Zero-Stars by Bauer at the time of their failure.
Fact: 98% of banks that have failed since 2008 were represented on Bauer’s Troubled and Problematic Bank Report before their failure; 95% were rated Zero-Stars.
Fact: With fewer than 3% of the industry relegated to these lists, it makes sense to make sure yours isn’t one of them.
Visit bauerfinancial.com today to look up the rating of your bank(s) and/or credit union(s), get the best CD rates in the country and read all about the current status of the banking industry.