Fridays announcement was an unsurprising ending to the banks stunning decline. A year ago, Rock River Bank, which was established in 1935, had $95.4 million in assets, had turned a profit of $282,000, and less than 2 percent of its loans were noncurrent, or more than 90 days past due. At the end of March 2009, though, its assets had dwindled to $77 million, and the bank lost nearly $4.8 million in the first quarter. Its noncurrent loans had grown to nearly 9.8 percent.
The banks capital reserves had fallen from 10.3 percent, considered well-capitalized, to 1.7 percent.