BauerFinancial, an independent bank research firm, has once again assigned Banner Bank with a 5-Star Rating, its highest rating. BauerFinancial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983. Ratings are independent. Financial institutions cannot pay the research firm to be rated, nor can any choose to be excluded.
The firm uses financial data compiled from call reports as reported to federal regulators. A number of criteria are reviewed to determine the Star Ratings, such as tangible capital ratio, tier 1 risk-based capital ratio and total risk-based capital ratio. They also review profitability/loss trends, evaluate the level of delinquent loans and repossessed assets, the market versus book value of the investment portfolio and liquidity. Potential losses on available-for-sale securities, delinquent loans and repossessed assets are forecasted in assigning the star rating.
Banner Bank is on Bauer's Recommended Bank Report. Each of the institutions on this list is financially sound and operating well above regulatory capital requirements. Each has a tangible capital ratio greater than 6% and a total risk-based capital ratio greater than 10%. Five-star institutions generally have twice the capital required by regulators.
Bauer's makes all ratings available on their web site. They also post information about the financial institutions they rate, including the FI's asset size, capital (net worth), tangible capital ratio, risk-based capital ratio, and year-to-date net income.