Safe and Sound

Eastbank, National Association

New York, NY
5
Star Rating
Started in 1984, Eastbank, National Association is an FDIC-insured bank headquartered in New York, NY. Regulatory filings show the bank having equity of $32.3 million on assets of $186.6 million, as of June 30, 2017.

With 35 full-time employees in 2 offices in NY, the bank currently holds loans and leases worth $110.5 million, including real estate loans of $111.4 million. U.S. bank customers currently have $150.4 million in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Eastbank, National Association exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the bank faired on the three important criteria Bankrate used to evaluate American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for accountholders during periods of economic instability for the bank. Therefore, when it comes to measuring an a bank's financial strength, capital is useful. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, Eastbank, National Association achieved a score of 26 out of a possible 30 points, exceeding the national average of 13.38.

One important measure of this buffer is a bank's Tier 1 capital ratio. Eastbank, National Association's Tier 1 capital ratio was 22.66 percent, above the 6 percent level regulators consider adequate, but below the national average of 25.16 percent. A higher capital ratio suggests the bank will be better able to stand up to financial difficulties.

Overall, Eastbank, National Association held equity amounting to 17.31 percent of its assets, which exceeded 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.

A bank with a large number of these kinds of assets may eventually be forced to use capital to absorb 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 no longer earning interest for the bank, diminishing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, Eastbank, National Association scored 40 out of a possible 40 points, above 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, none of Eastbank, 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 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 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 Eastbank, 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, giving a boost to its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Conversely, losses reduce a bank's ability to do those things.

On Bankrate's earnings test, Eastbank, National Association scored 6 out of a possible 30, lower than the national average of 16.52.

One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Eastbank, National Association's most recent annualized quarterly return on equity was 2.89 percent, below the national average of 9.28 percent.

The bank earned net income of $459,000 on total equity of $32.3 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.49 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.