Safe and Sound

Bank SNB

Stillwater, OK
4
Star Rating
Founded in 1894, Bank SNB is an FDIC-insured bank headquartered in Stillwater, OK. Regulatory filings show the bank having equity of $327.2 million on $2,566,846,000 in assets, as of June 30, 2017.

With 388 full-time employees in 30 offices in multiple states, the bank currently holds loans and leases worth $1.94 billion, including real estate loans of $1.40 billion. U.S. bank customers currently have $2.02 billion in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Bank SNB exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the bank did on the three key criteria Bankrate used to evaluate American banks.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for accountholders when a bank is struggling financially. It follows then that when it comes to measuring an a bank's financial resilience, capital is important. When looking at safety and soundness, the higher the capital, the better.
Bank SNB achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 13.38.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Bank SNB's Tier 1 capital ratio was 13.69 percent, higher than the 6 percent level regulators consider adequate, but lower than the national average of 25.16 percent. A higher capital ratio suggests the bank will be better able to weather economic difficulties.

Overall, Bank SNB held equity amounting to 12.75 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

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

Having large numbers of these kinds of assets could eventually require a bank to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, Bank SNB scored 36 out of a possible 40 points, lower than the national average of 37.62 points.

A widely used indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of June 30, 2017, 1.39 percent of Bank SNB'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 to deal with problem assets known as an "allowance for loan and lease losses." Comparing the that reserve's size to the total amount of problem loans can be a widely used indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on Bank SNB's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, take away from a bank's ability to do those things.

On Bankrate's test of earnings, Bank SNB scored 16 out of a possible 30, lower than the national average of 16.52.

Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. Bank SNB's most recent annualized quarterly return on equity was 7.19 percent, below the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank recorded net income of $11.5 million on total equity of $327.2 million. The bank had an annualized return on average assets, or ROA, of 0.92 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.