JUPITER, Florida (February 28, 2011) — On Friday, regulators closed one bank: Valley Community Bank, St. Charles, Illinois. This brings the total number of U.S. bank and thrift failures to 23 for 2011, ahead of last year’s pace of 22.
Valley Community Bank, St. Charles, Illinois, west of Chicago, with assets of $135.1 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 January 2008 based on third quarter 2007 data. It reported a loss of more than $2.2 million through September 30, 2010. Valley Community had below-FDIC-mandated Tier 1 (5%) and Risk-Based Capital (6%) ratios of 3.00% and 5.48%, respectively. Nonperforming loans made almost 20% of its loan portfolio. First State Bank, Mendota, Illinois with assets of $587.9 million and a Weiss Rating of “B” will assume the deposits of Valley Community 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.
# # #