Iowa regulators close first bank since September 2009
11/21/2011
On Friday, November 18, Iowa regulators closed Polk County Bank in Johnston—the first bank closing
in the state since September 4, 2009. The institution, with assets of $99.4 million at June 30, was rated
E- ("Very Weak") at the time of failure and was first identified as "Weak" in June 2008. It reported a
loss of more than $1.4 million through the six-month period ending June 30 and below-FDIC-mandated Tier
1 (5%) and risk-based capital (6%) ratios of 2.19% and 4.13%, respectively. Nonperforming loans
represented 11.4% of its loan portfolio.
Grinnell State Bank, located in Grinnell, Iowa, with assets of $171.8 million and a Weiss Financial
Strength Rating of A ("Excellent"), assumed the deposits of Polk County Bank. Grinnell has high Tier 1
capital of 12.98% and moderate risk-based capital of 15.28%. The bank has minimal nonperforming loans and
earned $963,000 through June 30.