Two Yuma-area banks get highest ratings from analyst service

The Foothills Bank and 1st Bank Yuma both received five-star ratings this quarter from BauerFinancial Inc., indicating a superior level of banking standards.

Sixty-seven percent of banks within the industry received either five or four stars compared to 3.3 percent that were actually identified as problematic, according to Karen Dorway, president and director of research at BauerFinancial, a nationwide financial analysis service.

Dorway told The Sun that the ratings were determined using quarterly figures that banks are required to send to federal regulators.

BauerFinancial does an independent analysis of the raw data it receives, she said, basing its rating system on capital, profitability, number of delinquent loans, performance history and whether the bank is at the receiving end of any enforcement actions.

John Marino, executive vice president and chief financial officer for 1st Bank Yuma, said a few factors contributed to his bank's rating, including the quality of loans and investment choices determined by management.

"The bottom line goes a long way in deciding stability, but the human factor is also important."

He maintained that a large part of a bank's success depends on personal service and the ability of decision-makers to understand their customers.

Wayne Gale, the newly instated president and chief executive officer of The Foothills Bank, agreed that "banking with a personal touch" should be a priority for consumers.

He emphasized the convenience an institution should provide to customers, not just in location but also in customer services.

He said their "focus of being the best community bank we can be" included becoming a part of the community they serve and being able to shield consumers and investors from unnecessary risks.

Marino said that "community banks in general are doing very well" when judged by the criteria above. He added that 1st Bank Yuma has never been involved in subprime lending and never will be.

"I think it is good to hear something positive, especially now," he said.

Dorway said her company's rating system targets a consumer's perspective rather than that of a shareholder, which means that while five star-rated institutions are stable places to deposit funds, they may not offer the largest returns on investments.

Wells Fargo, which has branches in Yuma County, received a five-star rating for its nationwide banking services.

Two other local banks and one local credit union received four-star ratings, according to BauerFinancial: Mohave State Bank, Yuma Community Bank and AEA Federal Credit Union.

To access more bank and credit union ratings for free, visit www.bauerfinancial.com or call 1-800-388-6686 to purchase individual ratings over the phone.

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BANK RANKINGS

- 5 STARS - SUPERIOR
- 4 STARS - RECOMMENDED BANK
- 3-1/2 STARS - GOOD
- 3 STARS - SATISFACTORY
- 2 STARS AND BELOW - POTENTIALLY UNSTABLE OR UNSTABLE

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Erin Orozco can be reached at eorozco@yumasun.com or 539-6849.