Traverse City State Bank snags a three-star national rating

There's a lot to be said for having a local bank in your community with strong ties to its customers, stakeholders and clients.

Those ties were obvious over the past year for Traverse City State Bank, as it faced an order from the FDIC to improve its asset quality and capital holdings in order to fix operational deficiencies. The order was given in 2010.

Now, the bank has met all of the requirements, in an unusually short time frame, and it's thanking its customers and community for making that possible.

Traverse City State Bank was recently re-rated by independent rating agency Bauer Financial, and attained a three-star rating on a scale of five stars; an upgrade from "problematic" to "adequate" in just over a year.

"We did it the old fashioned way – by working our own way out," says Connie Deneweth, TCSB's president and CEO. "The statistics surrounding our turnaround are quite impressive. The bank has returned to profitability and has added $7.2 million in new capital; its community shareholders have increased from 300 to 350; the last stock offering filled quickly, and there is now a waiting list of potential shareholders."

Part of that turnaround was the confidence local customers and shareholders showed in the bank. Rather than classing it with the rest of the nation's banking problems and turning away, Traverse City residents decided to support their local bank instead. The bank had major growth in mortgage loans, making it the third highest-producing mortgage lender in Grand Traverse County; checking account balances at the bank have increased by 52 percent over last year, and non-performing loans have been reduced significantly.

"We owe every one of our clients and shareholders a big thank you. The bank's board of directors was particularly impressed with our customer and shareholder support. Our clients and community members rallied with us during this challenging time to help Traverse City State Bank. For that we are truly appreciative," says Deneweth.

Writer: Sam Eggleston
Source: Connie Deneweth, Traverse City State Bank