Safe and Sound

Citizens Bank of Rogersville

Rogersville, MO
5
Star Rating
Rogersville, MO-based Citizens Bank of Rogersville is an FDIC-insured bank founded in 1908. Regulatory filings show the bank having equity of $9.2 million on assets of $81.2 million, as of June 30, 2017.

Thanks to the efforts of 21 full-time employees in 2 offices in MO, the bank holds loans and leases worth $54.7 million, including real estate loans of $41.6 million. U.S. bank customers currently have $65.8 million in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Citizens Bank of Rogersville exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the bank did on the three key criteria Bankrate used to evaluate American banks on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an an institution's financial stability, capital is valuable. It works as a buffer against losses and as protection for depositors when a bank is struggling financially. When it comes to safety and soundness, more capital is preferred.
Citizens Bank of Rogersville came in below the national average of 13.38 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Citizens Bank of Rogersville's Tier 1 capital ratio was 12.96 percent, exceeding the 6 percent level regulators consider adequate, but under the national average of 25.16 percent. A higher capital ratio suggests the bank will be better able to weather financial downturns.

Overall, Citizens Bank of Rogersville held equity amounting to 11.28 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

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

A bank with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, shrinking its equity cushion. 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, pushing down earnings and increasing the chances of a failure in the future.

Citizens Bank of Rogersville scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 37.62.

The percentage of problem assets a bank holds compared to its total assets is a handy indicator of asset quality.As of June 30, 2017, 0.72 percent of Citizens Bank of Rogersville'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 maintain a reserve to handle troubled assets known as an "allowance for loan and lease losses." That reserve's size can be a useful indicator when evaluating a bank's ability to manage problem assets, especially when compared to the total amount of problem loans. Unfortunately, the FDIC did not provide information on Citizens Bank of Rogersville's loan loss allowance in its most recent filings.

Earnings score

A bank's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.

Citizens Bank of Rogersville received above-average marks on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. The most recent annualized quarterly return on equity for Citizens Bank of Rogersville was 12.16 percent, above the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank reported net income of $539,000 on total equity of $9.2 million. The bank reported an annualized return on average assets, or ROA, of 1.38 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above 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.