Star Ratings based on financial data from the quarter ending: March 31, 2009.
Explanation
Bankrate.com's Safe & Sound® service is a proprietary system designed to provide ratings 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. The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor. 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.
