Six area banks have been downgraded by the BauerFinancial bank-rating service, based on data filed with regulators for the quarter that ended Sept. 30.
At the same time, three area banks were upgraded. The vast majority of banks in the area kept the same rating they had the previous quarter.
BauerFinancial has seven rating levels: 5-star ("superior"), 4-star ("excellent"), 3 1/2-star ("good"), 3-star ("adequate"), 2-star ("problematic"), 1-star ("troubled") and 0 stars ("lowest rating").
Dewey State Bank had the sharpest downgrade. It dropped two notches, from 4 stars to 3, skipping the 3 1/2-star level.
Dropping one notch in the latest ratings were: Federated Bank of Onarga and MainSource Bank of Illinois, both of which fell from 3 1/2 stars to 3 stars; Marine Bank of Springfield, which fell from 4 stars to 3 1/2 stars; and Hardware State Bank of Lovington and State Bank of Lincoln, both of which dropped from 5 stars to 4 stars.
Receiving upgrades were First State Bank of Monticello and First Bank & Trust Savings of Paris, both of which rose from 4 stars to 5 stars; and Arcola Homestead Savings Bank, which rose from 2 stars to 3 stars. Arcola Homestead spent only one quarter rated as 2 star before bouncing back.
BauerFinancial bases its ratings on capital ratios, profitability trends, levels of delinquent loans, charge-offs and repossessed assets, liquidity, historical data and supervisory actions by regulatory agencies.
The only area bank to receive a 0-star rating – First National Bank of Gilman – agreed in August to be acquired by Edgar County Bank & Trust, but the deal isn't expected to close until this month, well after the ratings period had ended.
The only area bank to receive a 2-star rating – Central Illinois Bank – is a subsidiary of CIB Marine Bancshares, which filed in September for expedited reorganization under Chapter 11 of the bankruptcy code.
A judge approved the prepackaged plan of reorganization in late October, allowing the company to convert its debt to preferred stock, ostensibly boosting its capital position. The company is expected to emerge from Chapter 11 later this year.
Here's the breakdown of ratings on 82 banks that have offices in East Central Illinois:
5-star ("superior") ratings
Bank of Gibson City; Buckley State Bank; Central Bank, Ashkum; Cissna Park State Bank; Community Bank of Hoopeston; Country Trust Bank, Bloomington; DeWitt Savings Bank, Clinton; Farmer City State Bank; Farmers State Bank, Danforth; Farmers-Merchants National Bank, Paxton;
First Bank & Trust Savings Bank, Paris; First Federal Savings Bank of Champaign-Urbana; First Federal Savings & Loan, Mattoon; First Financial Bank of Terre Haute, Ind.; First Mid-Illinois Bank & Trust; First National Bank & Trust, Clinton; First National Bank in Paxton; First National Bank of Arcola; First National Bank of Chrisman; First National Bank of Ivesdale; First National Bank of Nokomis; First Savings Bank, Danville; First State Bank, Monticello; First Trust and Savings Bank, Watseka; Hickory Point Bank & Trust;
Iroquois Farmers State Bank; Iroquois Federal Savings and Loan; Milford Building & Loan; Philo Exchange Bank; Prairie State Bank & Trust; Sidell State Bank; Soy Capital Bank & Trust, Decatur; State Bank of Arthur; State Bank of Bement; State Bank of Cerro Gordo; Tuscola National Bank; Vermilion Valley Bank, Piper City; Woodforest National Bank.
4-star ("excellent") ratings
BankChampaign; Citizens State Bank, Milford; Commerce Bank, N.A.; Edgar County Bank & Trust; First National Bank in Georgetown; First National Bank of Ogden; First National Bank of Sullivan; Freestar Bank; Gifford State Bank; Hardware State Bank, Lovington; Heartland Bank & Trust, Bloomington; Kenney Bank & Trust; Longview State Bank, Sidney; Old National Bank; State Bank of Chrisman; State Bank of Lincoln; Sumner National Bank, Sheldon; Villa Grove State Bank.
3 1/2-star ("good") ratings
Bank of Rantoul; The First National Bank, Mattoon; First National Bank of Catlin; First Neighbor Bank, Toledo; Illinois National Bank, Springfield; JP MorganChase Bank; Marine Bank, Springfield; Midland States Bank, Effingham; Scott State Bank, Bethany; United Community Bank, Oakwood.
3-star ("adequate") ratings
Arcola Homestead Savings Bank; Bank of America; Busey Bank; Centrue Bank; Citizens National Bank, Paris; Dewey State Bank; Federated Bank, Onarga; First Midwest Bank; Fisher National Bank; Flanagan State Bank; MainSource Bank of Illinois; National City Bank; Regions Bank; State Farm Bank.
2-star ("problematic") ratings
Central Illinois Bank.
1-star ("troubled") ratings
0-star ("lowest") ratings
First National Bank of Gilman.