On Friday, February 14, 2020, Ericson State Bank was closed by the Nebraska Department of Banking and Finance (Source: FDIC ). This marks the first bank failure in 2020.
The state shuttered the bank after regulators found "large out-of-territory commercial loan losses" and "poor management practices" made it insolvent.
This bank was assigned the worst rating by our model using data up to December 31, 2019. Since December 2018, this bank's rating has been hoping between 2 and 3. By our rating definition, when a bank is assigned rating 1, it means we recommend depositors to move away from these banks as soon as possible.
While Ericson State Bank reported assets of nearly $101 million and deposits totaling $95.2 million as of Dec. 31, several measures showed spikes that pushed the bank over the cliff.
Details can be seen in our Bank Rating page.