Iowa bank ratings rise in 2015

A higher percentage of Iowa banks have been recommended by BauerFinancial, an independent bank-rating company, than at this same time last year.

The rankings were based on first-quarter data reported to the Federal Deposit Insurance Corp.

Coral Gables, Fla.-based BauerFinancial recommended 93.7 percent of Iowa banks on March 31, up from 89.6 percent at the end of the first quarter of 2014.

BauerFinancial said 1 percent of Iowa banks were listed as troubled and problematic at the end of the first quarter of 2015, down from 1.8 percent at the same point in 2014.

BauerFinancial gave State Central Bank of Bonaparte in Van Buren County a rating of 'zero” stars due to its financial condition at the end of the first quarter. The bank reported a loss of $513,000 for the three months that ended on March 31, narrowing a $1.3 million loss for the year in 2014.

BauerFinancial said the nation's banks had the highest percentage of recommended banks with four or five stars since the third quarter of 2005 with 80 percent earning one of the two top ratings.

Almost all states showed year-over-year improvement in the percent of recommended banks, which account for more than 90 percent of the banks with headquarters in 10 states.

Iowa credit unions also posted an improved first quarter, according to BauerFinancial, with 88.7 percent on the recommended list, compared with 88.5 percent at the end of the first quarter of 2014.

BauerFinancial said no Iowa credit unions were listed as troubled and problematic at the end of the first quarter, compared with 0.9 percent at the end of the first quarter of 2014.

Federally-insured credit unions showed marginal improvement from a year ago with 78.8 percent earning BauerFinancial's recommendation. Six states had more than 90 percent of their credit unions on the recommended list.