Star Ratings based on financial data from the quarter ending: June 30th, 2008.
Explanation
Bankrate.com's Safe & Sound® service is a
proprietary system designed to provide information on the relative financial
strength and stability of U.S. commercial banks, savings institutions and
credit unions. The system applies 22 tests to each institution to measure that
institution's:
Capital adequacy.
Asset quality.
Profitability.
Liquidity.
Individual performance levels are determined from publicly
available regulatory filings and are compared to asset-size peer norms,
industry standards and key absolute benchmarks. Combined results form the basis
of our Safe & Sound ratings, which are described below. When possible, the
system also produces a report that provides a detailed explanation of our
findings for each rated financial institution.
Bankrate provides its Safe & Sound ratings information for businesses
and consumers to use as only one factor in connection with their banking
decisions. In connection with banking decisions, businesses and consumers are
advised to evaluate independently all financial institutions, consider other
information -- including the strength of the financial institution's management
-- and to contact financial institutions individually to seek answers to their
questions. Bankrate's rating information should not be relied upon exclusively in
making banking decisions.
Ratings
structure
Presented below is an explanation of Bankrate's Safe & Sound rating system
for commercial banks, savings institutions and credit unions:
Safe & Sound® Ratings
Bankrate's Safe & Sound ratings are comparisons to both industry peer
norms and standards. In a very small number of instances, operating
strategies that differ from industry norms may lead to ratings that are not truly
reflective of an institutions' financial condition. A Safe & Sound rating
of one or two stars does not suggest that we believe direct regulatory action
is imminent or even likely but rather only indicates that certain below-average
performance factors have been found during the applicable rating cycle.
Quarterly updates of Safe & Sound ratings allow us to monitor changes
that may occur, and ratings may fluctuate on a quarterly basis.
The most desirable Safe
& Sound rating is five stars; the least desirable is one. Performing
institutions will generally receive a rating of three or more stars with the
majority of financial institutions falling into the three- to four-star
range.
Reports
In addition to issuing a Safe & Sound®
rating
for a financial institution, Bankrate.com also prepares a written report for
each rated financial institution that has at least four quarters of
historical financial data on file with the applicable federal regulatory
agencies. This report includes: (i) an earnings analysis examining
profitability, component contributions to current year results and prior year
performance; (ii) a review of asset quality -- focusing on nonperforming
asset levels, loss reserve coverage, category risk and loan yield; (iii) an
analysis of capital trends, adequacy, quality and durability, liquidity and
interest rate risk; (iv) a summary of organizational information and
historical financial data, and (v) a separate financial summary section,
including a balance sheet and operating and ratio data. No report is
available for financial institutions that do not have at least four quarters
of historical financial data on file with the applicable federal regulatory
agencies. Therefore, the lack of a report for a particular financial
institution is not necessarily an indication of its financial strength or
weakness -- the financial institution may simply be too new for Bankrate to
prepare a report.
Not Rated "NR"
An institution with a "NR" rating may be too new to rate. The
"NR" is not any indication of financial strength or weakness. The
Safe & Sound rating is believed to be reliable but the information is not
guaranteed. In addition, events since the information was collected may have
altered an institution's financial condition.
'G' modifier
Bankrate.com deems financial institutions that exhibit asset growth of 25
percent, or more, during a 12-month period as "high growth" and
identifies these institutions with a "G" modifier next to its Safe
& Sound rating. High growth financial institutions may be assuming more
than normal risk, which could impact future safety and soundness.
Accordingly, businesses and consumers with actual or potential credit
exposure to commercial banks, savings institutions and credit unions carrying
our "G" modifier should consider seeking clarification from the
financial institution's management as to the nature of reported asset growth.
The FDIC - short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC was created by Congress in 1933 to make the savings of millions of Americans secure. The FDIC protects depositors against the loss of their insured deposits if an FDIC- insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. The basic insurance amount was $100,000 per depositor, per insured bank up until Oct. 3, 2008. On October 3, 2008, FDIC deposit insurance was temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. To check whether your bank or savings association is insured or for additional information regarding insurance limits, call the FDIC toll-free 1-877-275-3342, or use "Bank Find" at www.fdic.gov/deposit/index.html, or look for the official FDIC sign where deposits are received.
Source: FDIC Web site 2008/Insuring Your Deposits
Terms of Use of Safe
& Sound Ratings and Reports
By visiting, using and/or submitting information to
www.bankrate.com, including by viewing or using Safe & Sound Ratings and
Reports, you are accepting the practices described in the terms and
conditions of Bankrate's Agreement of Terms of Use located at the URL www.bankrate.com/brm/about/disclaimer.asp
(the "Terms of Use").
Your
use of the Safe & Sound Ratings and reports is subject to Bankrate's
Terms of Use.
Please note that you may
only access, print, e-mail, download or otherwise make personal use of Safe
& Sound ratings information, as well as any text, graphics, charts,
pictures, photographs, images, line art, icons and renditions appearing in
connection with the Safe & Sound ratings information in the form of: (1) one
machine-readable copy; (2) one backup copy; and (3) one print copy for your
noncommercial use; provided, however, that you shall not delete any
proprietary notices or material with regard to the foregoing. You may not
modify the Safe & Sound ratings information, or any text, graphics,
charts, pictures, photographs, images, line art, icons and renditions
appearing in connection with the Safe & Sound ratings information or
utilize them for any commercial purpose or any other public display,
performance, sale or rental.
ALL SAFE & SOUND
RATINGS AND REPORTS ARE PROVIDED TO YOU ON AN "AS-IS" AND "AS
AVAILABLE" BASIS. BANKRATE MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY
KIND, EXPRESS OR IMPLIED, AS TO THIS INFORMATION. WITHOUT LIMITING THE
GENERALITY OF THE PREVIOUS SENTENCE, NO REPRESENTATIONS, WARRANTIES OR
GUARANTEES ARE MADE REGARDING THE ACCURACY, CORRECTNESS, COMPLETENESS, OR
TIMELINESS OF THIS INFORMATION. YOUR USE OF SAFE & SOUND RATINGS AND
REPORTS IS AT YOUR SOLE RISK. YOU SHOULD CONTACT YOUR FINANCIAL INSTITUTION
TO EVALUATE ITS FINANCIAL CONDITION.
ALL SAFE & SOUND RATINGS
AND REPORTS ARE INTENDED ONLY TO ASSIST YOU WITH FINANCIAL DECISIONS AND DO
NOT CONSIDER YOUR PERSONAL FINANCIAL SITUATION. YOUR PERSONAL FINANCIAL
SITUATION IS UNIQUE AND THE INFORMATION MAY NOT BE APPROPRIATE FOR YOUR
PERSONAL SITUATION. ACCORDINGLY, BEFORE MAKING ANY FINAL DECISIONS REGARDING
YOUR FINANCIAL INSTITUTION, BANKRATE RECOMMENDS THAT YOU OBTAIN ADDITIONAL
INFORMATION AND ADVICE OF FINANCIAL ADVISERS WHO ARE FULLY AWARE OF YOUR
INDIVIDUAL CIRCUMSTANCES.
EVENTS OCCURRING AFTER SAFE
& SOUND RATINGS AND REPORTS WERE PREPARED AND BEFORE THEY ARE UPDATED AS
SCHEDULED MAY HAVE ALTERED AN INSTITUTION'S FINANCIAL CONDITION. FOR EXAMPLE,
THE FDIC REPORTS THAT APPROXIMATELY 280 BANKING INSTITUTIONS WERE IMPACTED BY
HURRICANE KATRINA.
BANKRATE SHALL IN NO EVENT
BE RESPONSIBLE TO, OR LIABLE TO, YOU, OR ANY THIRD PARTY, WHETHER IN
CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, FOR ANY
DAMAGES, INCLUDING, BUT NOT LIMITED TO, SPECIAL, INCIDENTAL, INDIRECT OR
CONSEQUENTIAL DAMAGES THAT INCLUDE, BUT ARE NOT LIMITED TO, DAMAGES FOR ANY
LOSS OF PROFIT, REVENUE OR BUSINESS, AS A DIRECT OR INDIRECT RESULT OF YOUR
RELIANCE UPON OR USE OF THE SAFE & SOUND RATINGS AND REPORTS.
