JUPITER, Florida (May 9, 2011) — On Friday, regulators closed one bank: Coastal Bank, Cocoa Beach, Florida. This brings the total number of U.S. bank and thrift failures to 40 for 2011, behind last year’s pace of 68.
Of the 40 institutions that have failed in 2011, 38, or 95%, were rated E- (“Very Weak”) by Weiss at the time of failure. Weiss rates 486 more banks and thrifts “Very Weak” with a rating of E+, E, or E-. Consumers can view the full list at www.weissratings.com.
Coastal Bank, Cocoa Beach, Florida, south of Daytona Beach, with assets of $132.9 million at December 31, 2010 had been rated E- (“Very Weak”) for the last quarter by Weiss Ratings and was first identified as “Weak” in March 2008. It reported a loss of more than $3.9 million for the year ended December 31, 2010. Coastal Bank had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 2.94% and 5.11%, respectively. Nonperforming loans represented 17% of its loan portfolio. Premier American, NA, located in Miami, Florida, with assets of over $2.4 billion and a Weiss Financial Strength Rating of B+ (“Good”) will assume the deposits of Coastal Bank.
Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company financial strength ratings and sovereign debt ratings, accepts no payments for its ratings from rated institutions. It also distributes independent investment ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.