Western National Bank second Arizona institution to fail in 2011
12/19/2011
Arizona banking regulators closed Western National Bank, located in Phoenix, on December
16, making it the second institution to fail in the state this year. The bank had assets of
$162.9 million at September 30. Weiss rated it E- ("Very Weak") at the time of failure and
first identified it as "Weak" in June 2009.
Western National reported a loss of more than $6.2 million for the nine months ending
September 30. It had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 1.01%
and 2.37%, respectively. Nonperforming loans represented 15.4% of its loan portfolio.
Washington Federal located in Seattle, Washington, with assets of $13.4 billion and a
Weiss Financial Strength Rating of B- ("Good"), assumed the deposits of Western National.
Washington Federal has high Tier 1 and risk-based capital ratios of 11.82% and 24.68%, respectively.
Nonperforming loans make up 3.23% of its total loan portfolio, and it earned $87 million through
September 30 for an ROA of 0.87%, well below the industry average of 0.94%.