Oct. 2--LAKELAND -- News of troubled and failing banks is everywhere, it seems, but in a recent report that rates financial institutions, two credit unions serving Polk County received superior marks.

Both Tampa-based Florida Central Credit Union and Lakeland-based Publix Employees Federal Credit Union received a five-star ranking for the second quarter, according to BauerFinancial.

BauerFinancial, based in Coral Gables, rates banks and credit unions based on assets, profits or losses and other factors. Its ratings range from zero stars to five. BauerFinancial's most recent report is for the second quarter, which ended June 30.

The two credit unions were the only financial institutions serving Polk to receive the highest rating.

At Publix Employees Federal Credit Union, Executive Vice President Bob Bregler said he expects the credit union to maintain its five-star rating thanks to its conservative, old-fashioned approach to making loans, including closely scrutinizing credit reports.

"We're a fiduciary for the money of Publix employees. We're not going to just throw it out there. If we think someone can't or won't repay a loan, we don't give it to them," he said, adding that the credit union does have some bad loans and delinquent mortgages, but "not to the extent that others have."

Rounding out credit unions:

Mulberry-based Magnify Credit Union received four stars, considered excellent.

Lakeland-based MidFlorida Federal Credit Union received four stars.

Tampa-based Railroad & Industrial also got four stars.

Jacksonville-based Community First Credit Union of Florida received three stars.

Lakeland's Postal Employees Federal Credit Union received three stars.

Tampa-based GTE Federal Credit Union earned two stars.

Among credit unions serving Polk, Community First, Magnify, MidFlorida, Publix Employees and Railroad & Industrial were profitable for the quarter. Florida Central lost money for the quarter because of a one-time special charge. However, despite taking a loss, BauerFinancial's methodology makes it possible for institutions that take a loss to still achieve a five-star rating once other factors are taken into consideration.

Turning to banks, the highest rating achieved by a bank serving Polk was four stars.

Among those that received four stars, considered to be an "excellent" rating by Bauer:

Lakeland-based Bank of Central Florida.

Winston-Salem, N.C.-based BB&T, which entered the county after acquiring Colonial.

Winter Haven-based Centerstate Bank of Florida.

The county's lowest-rated banks were Community National Bank at Bartow, Olde Cypress Community Bank, and Riverside National Bank, which each received zero stars, a step below Bauer's rating of "troubled," designated with one star.

Among Polk's banks, eight posted a profit; 12 showed a loss.

Looking at the Florida banking industry as a whole, Karen Dorway, president of BauerFinancial, said banking is still plagued by issues and it may be some time before a recovery becomes evident in Bauer's numbers.

"It's still a very challenging market. The industry is often the lagging indicator. Even as the economy does begin to turn around, it takes a while for that to reflect in the bank numbers," Dorway said. She gave the example that if a commercial project loses tenants, it's some time before the lack of rental income impacts the bank that financed the project. Likewise, once the economy makes a recovery, it takes some time for the spaces to be filled again.

"The Florida market in general, banks that had been struggling continue to struggle and those that were fairing alright, continue to do so," she said.

[ Rachel Pleasant Chambliss can be reached at 863-802-7533 or Rachel.pleasant@theledger.com ]

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