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Using a five-star rating system, Bauer Financial of Coral Gables has warned customers through the years about one-star "troubled" banks and two-star "problematic" banks in Florida.
Rarest of all is the dreaded zero stars. Guaranty National Bank of Tallahassee received that dubious distinction last week when Bauer's latest ratings were released. Guaranty, previously a two-star bank, sank to the lowest tier after it posted a $1.8-million loss in its latest quarter and its delinquencies shot up to 4.4 percent of total assets.
"The large loss is what finally tipped it over," Bauer president and director of research Karen Dorway said. "It had been losing money but it more than doubled from one quarter to the next."
Guaranty has other problems as well, agreeing to pay millions of dollars this month to settle charges of predatory lending. A bank spokeswoman could not be reached for comment.
In the latest report, there are no "one-stars" in the state and only two banks have two stars: 1st United Bank of North Palm Beach and First State Bank of Fort Lauderdale. All banks and thrifts in the Tampa Bay area scored between three stars (adequate) and five stars (superior).
In the past, Bauer's ratings have been a solid barometer of trouble. Last year, for instance, it dropped Hamilton Bank from a two-star rating to one star shortly before federal regulators moved to shut down the Miami bank.
Then again, Dorway pointed out that Guaranty was a zero-star bank back in 1996 and managed to rebuild to as high as 3-plus stars before sinking again.