Weiss Ratings: Canyon National Bank, Badger State Bank, Peoples State Bank and Sunshine State Community Bank First Identified as Weak Nearly Three Years Ago

JUPITER, Florida (February 14, 2011) — On Friday, regulators closed four banks: Canyon National Bank, Palm Springs, California; Badger State Bank, Cassville, Wisconsin; Peoples State Bank, Hamtramck, Michigan and Sunshine State Community Bank, Port Orange, Florida.  This brings the total number of U.S. bank and thrift failures to 18 for 2011. 

Canyon National Bank, Palm Springs, California with assets of $220.6 million at September 30, 2010 had been rated E- (“Very Weak”) for the last two quarters by Weiss Ratings and was first identified as “Weak” in June 2008 based on first quarter 2008 data.  It reported a loss of more than $7.8 million through September 30, 2010.  Canyon National had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 2.25% and 4.22%, respectively.  Nonperforming loans made up just over 16% of its loan portfolio.  Pacific Premier Bank, Costa Mesa, California with assets of $816 million and a Weiss Rating of “C+” will assume the deposits of Canyon National Bank. 

Badger State Bank, Cassville, Wisconsin, east of Atlanta, with assets of $85.5 million at September 30, 2010 had been rated E- (“Very Weak”) for the last six quarters by Weiss Ratings and was first identified as “Weak” in June 2008 based on first quarter 2008 data.  The bank reported a loss of $1.7 million through September 30, 2010.  Badger State had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.78% and 3.76%, respectively.  Nonperforming loans represented almost 6% of its loan portfolio.  Royal Bank, Elroy, Wisconsin, with assets of $222.8 million and a Weiss Rating of “B-” will assume the deposits of Badger State Bank. 

Peoples State Bank, Hamtramck, Michigan, north of Atlanta, with assets almost $430 million at September 30, 2010 had been rated E- (“Very Weak”) for the last seven quarters by Weiss Ratings and was first identified as “Weak” in June 2007 based on first quarter 2007 data.  The bank reported a loss of more than $9.1 million through September 30, 2010.  Peoples State had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.78% and 3.71%, respectively.  Nonperforming loans represented almost 13% of its loan portfolio.  First Michigan Bank, Troy, Michigan, with assets of $1.2 billion and a Weiss Rating of “B” will assume the deposits of Peoples State Bank. 

Sunshine State Community Bank, Port Orange, Florida, with assets of just over $139 million at September 30, 2010 had been rated E- (“Very Weak”) for the five quarters by Weiss Ratings and was first identified as “Weak” in September 2008 based on second quarter 2008 data.  The bank reported a loss of more than $5.4 million through September 30, 2010.  Sunshine State had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.69% and 3.87%, respectively.  Nonperforming loans represented just over 19% of its loan portfolio.  Premier American Bank, NA, Miami, Florida, with assets of $2.4 billion and a Weiss Rating of “B+” will assume the deposits of American Trust 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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