Home Savings Earns Five-Star Rating

Kent-based Home Savings Bank was among just a hand full of area banks to earn a strong financial rating from independent ratings firm Bauer Financial of Florida.

The four-star rating, handed out Dec. 7, puts Home Savings in Bauer's "excellent" category. About 60 percent of the 7,800 banks evaluated nationwide by the firm fall into the four-or-five star rating, or "recommended," category.

Home Savings Bank President Howard Boyle said he's not sure the rating from Bauer is comparable, in terms of effect, to a positive rating from the influential Standard and Poor's. But Boyle still accepts the accolades.

The 112-year-old bank has earned Bauer's "recommended" status for 14 consecutive quarters.

"In our case, our deposits are up," Boyle said. "Our loans are up. We've had a tremendous year, frankly. Our income was up over last year. It's tough to say that when the economy is so bad."

The catch, Boyle said, is that this time of big profit margins for well-managed banks is only temporary. Bank profit margins are likely to shrink once the Federal Reserve stops acting so aggressively to try and primer the economy.

Ohio banks with five-star ratings included: North Akron Savings Bank of Akron, Valley Savings Bank of Cuyahoga Falls, Lake National Bank of Mentor, Independence Bank of Independence, Third Federal Savings of Cleveland, Credit First N.A. of Brook Park, Westfield Bank of Westfield Center, and Wayne Savings Community Bank of Wooster. The remaining four-star banks are: FirstMerit of Akron, First Federal of Lakewood, and Ohio Commerce Bank of Beachwood.

The number of banks nationwide that earned Bauer's four-or-five star ratings this year increased to levels comparable with the second quarter of 2008.

According to Bauer, 37 percent of the nation's banks earned the five-star rating. That's the most since 2007. And it could be a sign the economy is improving.

"It's good news, no question about it," Boyle said.