Safe and Sound

Ameriprise National Trust Bank

Minneapolis, MN
5
Star Rating
Started in 2006, Ameriprise National Trust Bank is an FDIC-insured bank headquartered in Minneapolis, MN. Regulatory filings show the bank having equity of $22.6 million on $24,829,000 in assets, as of June 30, 2017.

With 19 full-time employees, the bank has amassed loans and leases worth $0, including real estate loans of $0. U.S. bank customers currently have $500,000 in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Ameriprise National Trust Bank exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the bank did on the three important criteria Bankrate used to score American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for depositors during times of economic trouble for the bank. It follows then that a bank's level of capital is a useful measurement of a bank's financial resilience. From a safety and soundness perspective, more capital is preferred.
Ameriprise National Trust Bank achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 13.38.

One essential measure of this buffer is a bank's Tier 1 capital ratio. Ameriprise National Trust Bank's Tier 1 capital ratio was 338.56 percent, exceeding the 6 percent level regulators consider adequate, and above the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to stand up to financial downturns.

Overall, Ameriprise National Trust Bank held equity amounting to 91.00 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the bank's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets suggests a bank may have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, Ameriprise National Trust Bank scored 40 out of a possible 40 points, exceeding the national average of 37.62 points.

A helpful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets.

Banks maintain a reserve known as an "allowance for loan and lease losses" to deal with troubled assets . That reserve's size can be a helpful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of at-risk loans. Unfortunately, the FDIC did not provide information on Ameriprise National Trust Bank's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Losses, on the other hand, reduce a bank's ability to do those things.

Ameriprise National Trust Bank received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Ameriprise National Trust Bank was 2.98 percent, below the national average of 9.28 percent.

The bank reported net income of $334,000 on total equity of $22.6 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.76 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.