Despite Poor Health After Great Recession, Southeast Michigan Banks Show Great Improvement
|During the great recession that affected the global market from the mid-2000s until just a few years ago, people, banks, and corporations were in financial turmoil.
Hundreds of commercial banks filed for bankruptcy or failed completely during the financial crisis. Currently, the U.S. has 5,338 commercial banks, and despite hard hits, many have made significant improvements.
BauerFinancial Inc., a Fort Lauderdale-based ratings agency that analyzes bank and credit union health, gave 15 Michigan banks their lowest rating — zero stars — in March 2010, near the end of the recession.
Since 1983, BauerFinancial has reported the performance of U.S. banks and credit unions without outside influence. The institution independently rates the financial institutions on capital-to-debt ratios, profit and loss trends, delinquent loans and write-offs, historical data, liquidity, reserves, repossessed assets, community reinvestment ratings, and market versus book value.
In its most recent evaluation, of the 131 banks that operate in Michigan, only two received zero-star ratings. In Southeast Michigan alone, there are 38 banks in operation. Urban Partnership Bank, based in Chicago, was the only one to receive a zero-star rating.
The following bans received BauerFinancial’s top rating of five stars:
With the exception of First National Bank in Howell (three and a half stars) and Auto Club Trust FSB of Dearborn (three stars), the remaining southeast Michigan banks received four star ratings.
No institution can pay to increase its BauerFinancial rating, nor can it request to be exempt from the rating process.