Banks close in Utah and Nebraska for the first time in more than a year
11/07/2011
SunFirst Bank, St George, Utah, with assets of $212.7 million at June 30, was closed by Utah regulators
on Friday, November 4. It was rated E- ("Very Weak") by Weiss at the time of failure and was first
identified as "Weak" in March 2008. The bank reported a loss of more than $2.7 million for the six
months ending June 30. Although SunFirst Bank had above-FDIC-mandated Tier 1 (5%) and risk-based capital (6%)
ratios of 5.43% and 8.62%, respectively, nonperforming loans represented more than 15% of its loan portfolio.
Cache Valley Bank, located in Logan, Utah, with assets of $295.5 million and a Weiss Financial Strength Rating
of A-, assumed the deposits of SunFirst Bank. Cache Valley Bank has high Tier 1 capital of 12.76% and moderate
risk-based capital of 16.15%. The bank also had low nonperforming loans of 1.48% and $3.87 million in net income
through June 30.
Mid City Bank, Omaha, Nebraska, with assets of $124.7 million at June 30, was rated E- ("Very
Weak") by Weiss at the time of failure and was first identified as "Weak" in June 2008. It
reported a loss of more than $6.4 million for the six months ending June 30. Mid City Bank had negative capital
ratios, and nonperforming loans represented 10.8% of its loan portfolio. Purdum State Bank, located in Purdum,
Nebraska, with assets of $20.6 million and a Weiss Financial Strength Rating of C+, assumed the deposits of Mid
City Bank. Purdum State Bank has moderate risk-based capital of 23.59%, which is above the industry average.