Safe and Sound

CenterState Bank, National Association

Winter Haven, FL
4
Star Rating
CenterState Bank, National Association is a Winter Haven, FL-based, FDIC-insured bank started in 1992. As of June 30, 2017, the bank had equity of $891.2 million on $6,757,198,000 in assets.

With 1,173 full-time employees in 82 offices in FL, the bank has amassed loans and leases worth $4.63 billion, including real estate loans of $3.92 billion. U.S. bank customers currently have $5.48 billion in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, CenterState Bank, National Association exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the bank faired on the three important criteria Bankrate used to grade American banks.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion 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 fortitude, capital is valuable. When looking at safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, CenterState Bank, National Association received a score of 10 out of a possible 30 points, below the national average of 13.38.

A bank's Tier 1 capital ratio is a commonly used measure of this buffer. CenterState Bank, National Association's Tier 1 capital ratio was 11.44 percent, above the 6 percent level considered adequate by regulators, but lower than the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to stand up to economic difficulties.

Overall, CenterState Bank, National Association held equity amounting to 13.19 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the bank's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets could eventually require a bank to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the bank, reducing earnings and increasing the risk of a future failure.

CenterState Bank, National Association scored above the national average of 37.62 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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, 0.70 percent of CenterState Bank, National Association's loans were noncurrent -- in other words, 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 that reserve's size to the total amount of problem loans can be a handy indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on CenterState Bank, National Association'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, 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. Banks that are losing money, however, have less ability to do those things.

CenterState Bank, National Association scored 16 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 16.52.

One key measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for CenterState Bank, National Association was 9.42 percent, above the national average of 9.28 percent.

The bank earned net income of $31.6 million on total equity of $891.2 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent 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.