Safe and Sound

Bank of Camilla

Camilla, GA
5
Star Rating
Bank of Camilla is a Camilla, GA-based, FDIC-insured bank that opened its doors in 1890. Regulatory filings show the bank having equity of $15.9 million on assets of $103.8 million, as of June 30, 2017.

U.S. bank customers have $87.6 million on deposit at 2 offices in GA run by 29 full-time employees. With that footprint, the bank currently holds loans and leases worth $43.9 million, $28.6 million of which are for real estate.

Overall, Bankrate believes that, as of June 30, 2017, Bank of Camilla exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the bank did on the three important criteria Bankrate used to evaluate U.S. banks on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for depositors when a bank is experiencing financial instability. It follows then that a bank's level of capital is an essential measurement of an institution's financial strength. When looking at safety and soundness, more capital is better.
Bank of Camilla exceeded the national average of 13.38 points on our test to measure the adequacy of a bank's capital, scoring 22 out of a possible 30 points.

One important measure of this buffer is a bank's Tier 1 capital ratio. Bank of Camilla's Tier 1 capital ratio was 22.42 percent, higher than the 6 percent level regulators consider adequate, but below the national average of 25.16 percent. A higher capital ratio suggests the bank will be better able to weather economic downturns.

Overall, Bank of Camilla held equity amounting to 15.36 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the bank's loan loss reserves and overall capitalization.

Having lots of these types of assets may eventually force a bank to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the bank, reducing earnings and elevating the risk of a failure in the future.

Bank of Camilla scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than 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, 2.79 percent of Bank of Camilla's loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's above the national average of 1.04 percent.

Banks keep a reserve known as an "allowance for loan and lease losses" to deal with troubled assets . 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 problem loans. Unfortunately, the FDIC did not provide information on Bank of Camilla's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.

Bank of Camilla received below-average marks on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

One widely used way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Bank of Camilla was 6.71 percent, below the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank reported net income of $522,000 on total equity of $15.9 million. The bank reported an annualized return on average assets, or ROA, of 1.00 percent, right at the level deemed satisfactory in accordance with industry standards, but 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.