Safe and Sound

Crystal Lake Bank and Trust Company, National Association

Crystal Lake, IL
4
Star Rating
Crystal Lake, IL-based Crystal Lake Bank and Trust Company, National Association is an FDIC-insured bank started in 1997. Regulatory filings show the bank having equity of $89.7 million on assets of $959.5 million, as of June 30, 2017.

With 62 full-time employees in 7 offices in IL, the bank holds loans and leases worth $736.6 million, including real estate loans of $307.0 million. U.S. bank customers currently have $817.7 million in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Crystal Lake Bank and Trust Company, National Association 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 important criteria Bankrate used to score U.S. banks.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for depositors when a bank is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. When it comes to safety and soundness, the more capital, the better.
Crystal Lake Bank and Trust Company, National Association received a score of 10 out of a possible 30 points on our test to measure the adequacy of a bank's capital, coming in below the national average of 13.38.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Crystal Lake Bank and Trust Company, National Association's Tier 1 capital ratio was 11.11 percent, above the 6 percent level regulators consider adequate, but less 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 headwinds.

Overall, Crystal Lake Bank and Trust Company, National Association held equity amounting to 9.35 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a bank to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the bank, pushing down earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, Crystal Lake Bank and Trust Company, National Association scored 40 out of a possible 40 points, beating out the national average of 37.62 points.

The percentage of problem assets a bank holds compared to its total assets is a useful indicator of asset quality.As of June 30, 2017, 0.36 percent of Crystal Lake Bank and 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 maintain a reserve to deal with troubled 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 helpful indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on Crystal Lake Bank and Trust Company, National Association's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.

Crystal Lake Bank and Trust Company, National Association did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Crystal Lake Bank and Trust Company, National Association was 9.34 percent, above the national average of 9.28 percent.

The bank earned net income of $4.1 million on total equity of $89.7 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.88 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.