Credit Loss Expectations Brighten

Coral Gables, Florida, June 16, 2021 Coral Gables, FL: BAUERFINANCIAL, Inc., the nation’s premier Bank and Credit Union rating firm, is pleased to report that the majority of U.S. banks have been able to reverse loan loss provisions as the expected onslaught of loan defaults fizzles. The negative provision helped boost net income for the industry by 29% in the first quarter. While we are not completely out of the woods yet, the majority of federally-insured banks and credit unions were prepared for a worst case scenario. The exceptions to this were primarily smaller credit unions that lacked the recourses of some of their larger peers.

There are currently 65 banks and 144 credit unions rated 2-Stars or below. That amounts to fewer than 3% of the industry relegated to Bauer’s Troubled and Undercapitalized Bank or Credit Union Reports. Institutions rated 5-Stars or 4-Stars, and therefore recommended by Bauer, account for nearly 88% of the total. Bauer’s star-ratings are assigned on a scale of zero to five-stars with five-stars being the strongest and reflect the overall financial strength of the institution. The latest star-ratings, based on March 31, 2021 financial data, are available, free of charge, at

     Bauer suggests:
     Everyone ensure your deposits are fully insured;
     Businesses should check the rating wherever you have a line of credit to make sure your source of funding is there if and when you need it;
     Direct Deposit Recipients won’t want to risk any disruptions that could happen if a bank closes
with no acquirer; and those who set-up
     Auto Pay for monthly bills would want to avoid similar disruptions that could lead to late fees.

To find out the rating of your bank or credit union, simply visit Look up as many ratings as you like. It really is free. While you’re there, check out our CD rate pages to get the best CD rates in the country and read Bauer’s Blog to get more insights into what’s going on in the banking industry, all from the comfort and safety of your home.

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BAUERFINANCIAL: providing the public with the knowledge they need to make informed decisions regarding their banking relationships since 1983. No institution has ever paid to be rated, nor can any U.S. chartered federally-insured institution avoid being rated by Bauer.