Eight area banks were upgraded and one was downgraded last week by the BauerFinancial rating service, based on data for the quarter that ended June 30.
First Neighbor Bank, based in the Cumberland County village of Toledo, was downgraded from 5 stars ("superior") to 4 stars ("excellent"). Two of its branch offices are in Newman and Charleston.
Four area banks were upgraded from 4 stars to 5 stars. They included: First Mid-Illinois Bank and Trust; Midland States Bank; Woodforest National Bank; and Flanagan State Bank.
Two area banks — BankChampaign and Bank of Gibson City — were upgraded from 3 1/2 stars ("good") to 4 stars.
Two others — Bank of America and Federated Bank, Onarga — saw their ratings improve from 3 stars ("adequate") to 3 1/2 stars.
The other 67 banks in the area retained the same ratings they had at the close of the quarter that ended March 31.
BauerFinancial bases its ratings on capital ratios, profitability trends, levels of delinquent loans, charge-offs and repossessed assets, liquidity, historical data and supervisory ratings by regulatory agencies.
BauerFinancial is one of several bank-rating services. It differentiates itself from others by making its ratings accessible to the public.
Overall, the latest ratings indicated that area banks, as a group, are in better shape than they've been in years.
Nearly 60 percent of area banks received BauerFinancial's highest rating of 5 stars.
No area banks received the lowest rating — 0 stars — and no area banks got 1-star ("troubled") or 2-star ("problematic") ratings. Only four area banks got 3-star ("adequate") ratings.
Of the upgraded banks, the one with the most area offices was Mattoon-based First Mid-Illinois Bank & Trust, with branches in Champaign, Urbana, Mahomet, Mansfield, Monticello, Tuscola, Arcola, Mattoon, Charleston, Weldon and Sullivan.
Woodforest National Bank is also well-represented in the area, with branches in Walmarts in Champaign, Urbana, Savoy, Rantoul, Danville and Mattoon.
BankChampaign has three offices in Champaign, and Effingham-based Midland States Bank has one in Champaign.
Bank of America has area branches in Mattoon and Charleston; Federated Bank has offices in Onarga and Loda; Flanagan State Bank has a branch in LeRoy; and Bank of Gibson City's sole office is in Gibson City.
Since the close of the second quarter, Farmer City State Bank has merged with Heartland Bank & Trust, with the merger completed Aug. 24.
Here's the breakdown of BauerFinancial's ratings of 76 banks with offices in East Central Illinois based on data from the quarter that ended June 30:
5 stars ("superior")
Arcola First Bank; Bank of Rantoul; Buckley State Bank; Busey Bank; Cissna Park State Bank; Commerce Bank; Community Bank of Hoopeston; DeWitt Savings Bank, Clinton; Farmer City State Bank; Farmers State Bank, Danforth; First Bank & Trust Savings Bank, Paris; First Federal Savings & Loan, Mattoon; First Financial Bank of Terre Haute, Ind.; First Mid-Illinois Bank & Trust; First National Bank & Trust, Clinton; The First National Bank, Mattoon; First National Bank in Paxton; First National Bank of Chrisman; First National Bank of Nokomis; First National Bank of Sullivan; First Savings Bank, Danville; First State Bank, Monticello; First Trust and Savings Bank, Watseka; Flanagan State Bank; Hardware State Bank, Lovington; Heartland Bank & Trust, Bloomington; Hickory Point Bank & Trust; Illinois National Bank; Iroquois Farmers State Bank; Iroquois Federal Savings and Loan; Midland States Bank; Peoples Bank & Trust; Philo Exchange Bank; Prairie State Bank & Trust; Scott State Bank, Bethany; Sidell State Bank; Soy Capital Bank & Trust, Decatur; State Bank of Arthur; State Bank of Bement; State Bank of Cerro Gordo; State Bank of Lincoln; Tuscola National Bank; Vermilion Valley Bank, Piper City; Woodforest National Bank.
4 stars ("excellent")
BankChampaign; Bank of Gibson City; Citizens State Bank, Milford; Dewey Bank; Edgar County Bank & Trust; Farmers-Merchants National Bank, Paxton; First Federal Savings Bank of Champaign-Urbana; First National Bank in Georgetown; First National Bank of Ogden; First Neighbor Bank, Toledo; Fisher National Bank; Gifford State Bank; Kenney Bank & Trust; Old National Bank; State Farm Bank; Sumner National Bank, Sheldon; United Community Bank, Oakwood; Villa Grove State Bank.
3 1/2 stars ("good")
Bank of America; Federated Bank, Onarga; First Midwest Bank; First National Bank of Catlin; JP MorganChase; MainSource Bank; Marine Bank, Springfield; PNC Bank; Regions Bank; State Bank of Chrisman.
3 stars ("adequate")
CIBM Bank; Citizens National Bank, Paris; Longview State Bank, Sidney; Milford Building & Loan.