The Denver Post article leads off with quite a depressing statement:
“Colorado banks are under greater financial stress and have thinner cushion to absorb bad loans than banks in most other states, according to two national surveys.”
What it means is even more concerning: A quarter of the banks in Colorado have met the definition of a troubled or problematic institution, according to BauerFinancial as cited by the Denver Post.
Through BauerFinancial’s research, it was found that the percentage of troubled banks increased from the end of 2009 and 2010 – up from roughly 20 percent to 25.6 percent. It is also well above the national average of 12.8 percent. Additionally, the Federal Deposit Insurance Corp. noted that Colorado had the second- and third-largest bank failures in the country in 2010.
BauerFinancial rates banks and credit unions using a five-star system. Zero stars, obviously, is a bank that has some major problems, and a five-star institution is one that is doing very well. The other measurement the Denver Post cites is the Texas Ratio, or the ratio of capital and reserves for loan losses to the amount of delinquent loans and repossessed assets. Numbers above 100 suggest loan losses could leave the bank insolvent.
If you read the article, you’ll notice three banks listed. One of those is Premier Bank in Denver. Rest assured: Premier Bank is not affiliated with Premier Members. But, if you’re wondering where Premier Members rates with both of these and how it is doing in terms of overall health. I am happy to tell you that I checked both of those long before the Denver Post report came out. Our BauerFinancial rating is currently four stars, and our Texas ratio is at 20.59 percent.
If you have any questions, be sure to shoot them our way.