Weiss Ratings News Briefs


Illinois banking regulators close 48th bank since crisis began

02/13/2012

On Friday, Illinois banking regulators shuttered Charter National Bank & Trust, the 48th bank to close in Illinois since January 2007. The bank was rated E- ("Very Weak") by Weiss at the time of failure and was first identified as "Weak" in March 2008. It reported a loss of more than $1.1 million for the nine months ended September 30, 2011. It had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 3.37% and 5.52%, respectively. Nonperforming loans represented 14.4% of its loan portfolio.

Barrington Bank & Trust Company, N.A., Barrington, Illinois, with assets of $1.2 billion and a Weiss Financial Strength Rating of C- ("Fair"), assumed the deposits of Charter National Bank & Trust. Barrington has Tier 1 and risk-based capital of 9.69% and 12.02%, respectively, and very low nonperforming loans making up just 1.14% of its total portfolio. It earned $5.5 million through September 30 for an ROA of 0.65%, slightly below the industry average of 0.94%.