Safe and Sound

Beverly Bank & Trust Company, National Association

Chicago, IL
4
Star Rating
Beverly Bank & Trust Company, National Association is an FDIC-insured bank started in 2004 and currently based in Chicago, IL. Regulatory filings show the bank having equity of $136.4 million on assets of $1.22 billion, as of June 30, 2017.

Thanks to the work of 125 full-time employees in 7 offices in IL, the bank holds loans and leases worth $950.4 million, $336.6 million of which are for real estate. The bank currently holds $1.01 billion in deposits from U.S. customers.

Overall, Bankrate believes that, as of June 30, 2017, Beverly Bank & Trust Company, National Association exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the bank did on the three major criteria Bankrate used to score U.S. banks.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a bank's financial fortitude. It works as a buffer against losses and as protection for accountholders during times of financial trouble for the bank. When it comes to safety and soundness, the more capital, the better.
Beverly Bank & Trust Company, National Association received a score of 12 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 13.38.

A bank's Tier 1 capital ratio is a commonly used measure of this buffer. Beverly Bank & Trust Company, National Association's Tier 1 capital ratio was 10.92 percent, higher than the 6 percent level regulators consider adequate, but under 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, Beverly Bank & Trust Company, National Association held equity amounting to 11.16 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

This test is intended to try to understand how the bank's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having lots of these kinds of assets could eventually require a bank to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

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

A handy indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of June 30, 2017, 0.22 percent of Beverly Bank & Trust Company, National Association'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 known as an "allowance for loan and lease losses" to deal with troubled assets . Comparing the the size of that reserve to the total amount of at-risk loans can be a useful indicator when evaluating a bank's ability to manage problem assets. Unfortunately, the FDIC did not provide information on Beverly Bank & Trust Company, National Association's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.

Beverly Bank & Trust Company, National Association fell short of the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Beverly Bank & Trust Company, National Association was 7.45 percent, below the national average of 9.28 percent.

The bank earned net income of $4.8 million on total equity of $136.4 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 0.82 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.