NewswireToday - /newswire/ -
Saint Paul, MN, United States, 2011/05/12 - Based on year-end 2010 results, Platinum Bank in Minnesota received the highest five-star rating from BauerFinancial, Inc., which has independently analyzed and reported on the performance of U.S. banks and credit unions since 1983 - PlatinumBankMN.com.
“It is rewarding to have independent banking research like this confirm the quality of our bank,” said David Rom, President of Platinum Bank, of the five-star rating the community bank received from respected banking data resource, BauerFinancial Inc. “It’s a strong indicator for our customers that Platinum Bank is financially sound and growing.”
Only the best-performing banks in the country receive a prestigious five-star rating. In addition to a healthy capital ratio as required by federal regulatory requirements, BauerFinancial rates banks based on profit and loss trends, the level of delinquent loans, chargeoffs and repossessed assets, the market vs. book value of the investment portfolio, regulatory supervisory agreements, the Community Reinvestment Rating (CRA), historical data and liquidity, among others. The proprietary Star-Rating system includes other criteria not disclosed.
Banks cannot pay for a rating and aren’t rated by BauerFinancial until they have been operating at least 2.5 years, which allows a more accurate picture of bank performance. Banks must get at least 3.5 stars to be considered good performers. Three stars or less indicates average performers to very troubled institutions. Platinum Bank opened its doors in 2007 and has maintained a clean loan portfolio, avoiding the speculative lending that led to many bank closings and consolidations in the last few years.
“There is a big difference between a five-star and a three-star bank in their ratings,” Rom noted.
In 2010, Rom noted that loan growth at Platinum Bank was 22 percent. This year, he estimates more double-digit growth. New business has come primarily from small business owners leaving larger institutions and reestablishing credit at Platinum Bank as well as financing for new ventures and owner-occupied commercial real estate.
“We are confident that Platinum Bank will continue to be a key partner to small businesses as they set plans in motion to launch new products or services or expand in the coming year,” Rom said.
Platinum Bank (platinumbankmn.com) provides both consumer and business banking products and services, including convenient online banking and remote business services. The bank ended 2010 with assets of $103 million.