Weiss Ratings: Four More Bank Failures in 2011 First Identified as "Weak" by Weiss as Early as Three Years Ago

JUPITER, Florida (January 24, 2011) — On Friday, regulators closed four banks: Bank of Asheville, Asheville, North Carolina; Enterprise Banking Co., McDonough, Georgia; CommunitySouth Bank & Trust, Easley, South Carolina and United Western Bank, Denver, Colorado. This brings the total number of U.S. bank and thrift failures to seven for 2011.

Bank of Asheville, Asheville, North Carolina, located west of Charlotte, with assets of just over $195 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 March 2010 based on fourth quarter 2009 data. The bank reported a loss of more than $18 million through September 30, 2010. Bank of Asheville had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 0.65% and 1.63%, respectively. Nonperforming loans made up 18.25% of its loan portfolio.

Enterprise Banking Co., McDonough, Georgia, south of Atlanta, with assets of almost $101 million at September 30, 2010 had been rated E- ("Very Weak") for the last five quarters by Weiss Ratings and was first identified as "Weak" in March 2009 based on fourth quarter 2008 data. The bank reported a loss of $3.7 million through September 30, 2010. Enterprise had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.50% and 3.22%, respectively. Nonperforming loans made just over 28% of its loan portfolio.

CommunitySouth Bank & Trust, Easley, South Carolina, southwest of Charlotte, with assets of just over $230 million at September 30, 2010 had been rated E- ("Very Weak") for the last four quarters by Weiss Ratings and was first identified as "Weak" in January 2008 based on third quarter 2007 data. The bank reported a loss of $8.4 million through September 30, 2010. CommunitySouth had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 1.07% and 3.47%, respectively. Nonperforming loans made almost 14% of its loan portfolio.

United Western Bank, Denver, Colorado, with assets of just over $2 billion at September 30, 2010 had been rated E- ("Very Weak") for the last quarter by Weiss Ratings and was first identified as "Weak" in October 2009 based on second quarter 2009 data. The bank reported a loss of more than $52 million through September 30, 2010. United Western had adequate FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 6.94% and 8.10%, respectively. Nonperforming loans made up 4.74% of its loan portfolio. However, nonperforming assets to core capital made up almost 34% of its assets.

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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