Wednesday, Jul 27, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Business

Bank of Maumee’s rating slips

Most northwest Ohio institutions saw little change in 2nd quarter

RISING

■ Focus Federal Credit Union from 4 stars to 5 stars

FALLING

■ Bank of Maumee from 1 star to 0 stars

■ Champion Credit Union from 5 stars to 4 stars

■ Jeep Country Federal Credit Union from 5 stars to 4 stars

■ Education Plus Credit Union from 5 stars to 4 stars

The second quarter of 2013 was an uneventful period for most northwest Ohio banks and credit unions.

But one area bank saw its troubled rating slip farther, according to the latest ratings of institutions by financial data firm BauerFinancial Inc.

Through June 30, 16 of the region’s 17 banks experienced no changes in their ratings provided by BauerFinancial, a leading bank research firm that rates banks and credit unions from zero to five stars based on the stability of their financial profiles.

The one northwest Ohio bank that did see a change — the Bank of Maumee — saw its dismal rating sink even lower.

The Bank of Maumee had been listed as a one-star “troubled” institution. In the second quarter, its rating slipped to zero stars, BauerFinancial’s lowest rating. Only four other banks in Ohio have a zero-stars rating.

Karen Dorway, BauerFinancial president, said Bank of Maumee’s rating slipped because it remains undercapitalized and also continues to post financial losses.

In 2012 it lost $470,000, according to BauerFinancial. In the first six months of 2013 it has lost $320,000, Ms. Dorway said.

“The Bank of Maumee slipped into undercapitalized status at the end of 2012 and it has become even further undercapitalized now than it was,” Ms. Dorway said.

The bank has been hampered by a large delinquent loan portfolio that was not generated by the local bank, but rather by its parent company, Capitol Bancorp of Lansing. Bank of Maumee has been trying to resolve its situation, but it has been slow going.

“Unfortunately, all of the banks in that [Capital Bancorp] holding company are struggling. Some of them have been closed,” Ms. Dorway said.

Of the 50 credit unions in northwest Ohio, 47 maintained their institutional ratings.

Two credit unions, Champion Credit Union of Toledo and Jeep Country Federal Credit Union of Holland saw their ratings slip from the data firm’s five-star “Superior” label to its four-star “Excellent” designation.

Jeep Country had just gained a five-star rating in the first quarter after previously having received four stars from BauerFinancial.

A third credit union, Focus Federal Credit Unio, of Toledo, went upward from four-stars to the five-star “Superior” rating, the Florida firm said.

The ratings of the three banks in southeast Michigan, including two-star Monroe Bank & Trust Co., remained unchanged in the second quarter.

Of the four credit unions in southeast Michigan, three saw their ratings go unchanged while a fourth, Education Plus Credit Union in Monroe, dropped to a four-star rating from its previous five-star status.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…