Sizing Up Your Bank’s Health?
[2010]
Commercial
banks and savings institutions insured by the Federal Deposit Insurance
Corporation (FDIC) reported an aggregate profit of $914 million in the
fourth quarter of 2009, a $38.7 billion improvement from the $37.8
billion net loss the industry sustained in the fourth quarter of 2008,
but still well below historical norms for quarterly profits. More
than half of all institutions (50.3 percent) reported year-over-year
improvement in their quarterly net income. Almost one-third (32.7
percent) reported net losses for the quarter, compared to 34.6 percent
a year earlier. So, how do I know how my bank is doing?
It is a legitimate concern, with the FDIC announcing in February that
702 insured institutions were on its “problem list” as of the end of
2009 – an increase of 150 from three months earlier and the most since
1993.
That list, however, is not available to the public – the FDIC only
identifies institutions that have already failed. But here are
some other resources that can help you gauge the financial health of
the place that’s got your money.
www.banktracker.investigativereportingworkshop.org
– where you can look up a bank’s troubled asset ratio. Higher
values generally indicate more stress from loans that are not being
paid back as scheduled.
www.bankrate.com
- Safe and Sound Star Ratings, which ranks institutions on a star
system based on regulatory filings. Fewer stars indicate lower
performance and suggest possible problems.
www.fdic.gov
(Bank Find), where you can check if your bank is FDIC-insured, learn if
it has recently merged or been acquired, and review its history.
Contact our office if you have any questions about your bank.
Our
mission is to provide each client with excellent service and
expertise.
We are committed to
"Doing the
things other advisors neglect to do,
giving you and your family a better life"
|
