Safe and Sound

Green Bank, National Association

Houston, TX
4
Star Rating
Green Bank, National Association is an FDIC-insured bank started in 1999 and currently based in Houston, TX. Regulatory filings show the bank having equity of $463.1 million on $4,150,921,000 in assets, as of June 30, 2017.

Thanks to the work of 366 full-time employees in 24 offices in multiple states, the bank holds loans and leases worth $3.09 billion, including $1.97 billion worth of real estate loans. The bank currently holds $3.36 billion in deposits from U.S. customers.

Overall, Bankrate believes that, as of June 30, 2017, Green Bank, 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 faired on the three important criteria Bankrate used to evaluate U.S. banks.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for depositors during periods of economic instability for the bank. It follows then that a bank's level of capital is a key measurement of a bank's financial resilience. When it comes to safety and soundness, more capital is preferred.
Green Bank, National Association received a score of 10 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 widely followed measure of this buffer. Green Bank, National Association's Tier 1 capital ratio was 10.93 percent, higher than the 6 percent level considered adequate by regulators, but below the national average of 25.16 percent. A higher capital ratio means the bank will be better able to weather financial difficulties.

Overall, Green Bank, 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 estimate how the bank's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having large numbers of these types of assets means a bank could eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

Green Bank, National Association scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 37.62.

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, 1.62 percent of Green Bank, National Association's loans were noncurrent, meaning they were more than 90 days past due or were in non-accrual status. That's above 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 . The size of that reserve can be a helpful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of problematic loans. Unfortunately, the FDIC did not provide information on Green Bank, National Association's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank better able to withstand economic shocks. Conversely, losses reduce a bank's ability to do those things.

Green Bank, National Association scored 20 out of a possible 30 on Bankrate's earnings test, above the national average of 16.52.

One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. The most recent annualized quarterly return on equity for Green Bank, National Association was 12.56 percent, above the national average of 9.28 percent.

The bank earned net income of $27.6 million on total equity of $463.1 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.36 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.