Safe and Sound

Old Plank Trail Community Bank, National Association

New Lenox, IL
4
Star Rating
Founded in 2006, Old Plank Trail Community Bank, National Association is an FDIC-insured bank based in New Lenox, IL. As of June 30, 2017, the bank had equity of $145.6 million on $1,404,866,000 in assets.

U.S. bank customers have $1.24 billion on deposit at 14 offices in multiple states run by 151 full-time employees. With that footprint, the bank currently holds loans and leases worth $967.1 million, including real estate loans of $341.3 million.

Overall, Bankrate believes that, as of June 30, 2017, Old Plank Trail Community Bank, National Association exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the bank did on the three major criteria Bankrate used to score American banks.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an a bank's financial strength, capital is key. It works as a cushion against losses and affords protection for depositors during periods of economic trouble for the bank. When it comes to safety and soundness, the more capital, the better.
Old Plank Trail Community Bank, National Association received a score of 10 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 13.38.

One widely followed measure of this buffer is a bank's Tier 1 capital ratio. Old Plank Trail Community Bank, National Association's Tier 1 capital ratio was 10.88 percent, exceeding the 6 percent level regulators consider adequate, but below the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to stand up to financial difficulties.

Overall, Old Plank Trail Community Bank, National Association held equity amounting to 10.37 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

This test's purpose is to try to understand 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 mortgages.

Having extensive holdings of these kinds of assets suggests a bank could have to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, Old Plank Trail Community Bank, National Association scored 40 out of a possible 40 points, above 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, 0.35 percent of Old Plank Trail Community 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 to handle troubled assets known as an "allowance for loan and lease losses." Comparing the the size of that reserve to the total amount of problem loans can be a handy indicator when evaluating a bank's ability to manage problem assets. Unfortunately, the FDIC did not provide information on Old Plank Trail Community Bank, 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, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. Conversely, losses take away from a bank's ability to do those things.

Old Plank Trail Community Bank, National Association scored 14 out of a possible 30 on Bankrate's earnings test, below 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 total equity. The most recent annualized quarterly return on equity for Old Plank Trail Community Bank, National Association was 6.76 percent, below the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank recorded net income of $4.7 million on total equity of $145.6 million. The bank had an annualized return on average assets, or ROA, of 0.69 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.