Safe and Sound

Premier Community Bank of Florida

Bradenton, FL
4
Star Rating
Founded in 2007, Premier Community Bank of Florida is an FDIC-insured bank based in Bradenton, FL. Regulatory filings show the bank having equity of $26.0 million on assets of $170.6 million, as of June 30, 2017.

Thanks to the work of 40 full-time employees in 4 offices in FL, the bank currently holds loans and leases worth $127.0 million, including real estate loans of $106.8 million. U.S. bank customers currently have $134.3 million in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, Premier Community Bank of Florida exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the bank did on the three major criteria Bankrate used to grade U.S. banks.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for accountholders when a bank is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. From a safety and soundness perspective, the higher the capital, the better.
Premier Community Bank of Florida did better than the national average of 13.38 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

One important measure of this buffer is a bank's Tier 1 capital ratio. Premier Community Bank of Florida's Tier 1 capital ratio was 19.30 percent, higher than the 6 percent level considered adequate by regulators, 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 downturns.

Overall, Premier Community Bank of Florida held equity amounting to 15.24 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

This test's purpose is 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 a large number of these kinds of assets means a bank may have to use capital to absorb losses, reducing 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 money, diminishing earnings and elevating the chances of a failure in the future.

Premier Community Bank of Florida scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 37.62.

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, 1.11 percent of Premier Community Bank of Florida'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 . That reserve's size can be a useful 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 Premier Community Bank of Florida's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.

On Bankrate's earnings test, Premier Community Bank of Florida scored 4 out of a possible 30, less than the national average of 16.52.

Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Premier Community Bank of Florida's most recent annualized quarterly return on equity was 1.83 percent, below the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank reported net income of $233,000 on total equity of $26.0 million. The bank reported an annualized return on average assets, or ROA, of 0.28 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.