Safe and Sound

Angelina Savings Bank, SSB

Lufkin, TX
4
Star Rating
Angelina Savings Bank, SSB is a Lufkin, TX-based, FDIC-insured bank started in 1978. The bank holds equity of $5.7 million on assets of $64.5 million, according to June 30, 2017, regulatory filings.

With 22 full-time employees, the bank has amassed loans and leases worth $32.4 million, including real estate loans of $17.4 million. U.S. bank customers currently have $58.6 million in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Angelina Savings Bank, SSB exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the bank faired on the three important criteria Bankrate used to score American banks.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an an institution's financial strength, capital is important. It acts as a buffer against losses and provides protection for depositors when a bank is struggling financially. When looking at safety and soundness, the more capital, the better.
On our test to measure capital adequacy, Angelina Savings Bank, SSB received a score of 8 out of a possible 30 points, below the national average of 13.38.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Angelina Savings Bank, SSB's Tier 1 capital ratio was 20.61 percent, exceeding the 6 percent level considered adequate by regulators, but under the national average of 25.16 percent. A higher capital ratio means the bank will be better able to weather financial downturns.

Overall, Angelina Savings Bank, SSB held equity amounting to 8.80 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

This test's purpose is to try to understand how the bank's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A bank with lots of these types of assets may eventually be required to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the bank, resulting in reduced earnings and potentially more risk of a future failure.

Angelina Savings Bank, SSB scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 37.62.

A useful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of June 30, 2017, 0.54 percent of Angelina Savings Bank, SSB's loans were noncurrent, meaning they were more than 90 days past due or were in non-accrual status. That's below the national average of 1.04 percent.

Banks keep a reserve to deal with troubled assets known as an "allowance for loan and lease losses." That reserve's size can be a widely used 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 Angelina Savings Bank, SSB's loan loss allowance in its most recent filings.

Earnings score

A bank's earnings performance has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.

Angelina Savings Bank, SSB scored 12 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 16.52.

Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Angelina Savings Bank, SSB's most recent annualized quarterly return on equity was 5.35 percent, below the national average of 9.28 percent.

The bank earned net income of $150,000 on total equity of $5.7 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.47 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below 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.