Safe and Sound

All America Bank

Oklahoma City, OK
4
Star Rating
All America Bank is an FDIC-insured bank started in 1969 and currently based in Oklahoma City, OK.410,319 Regulatory filings show the bank having equity of $43.1 million on $410.3 million in assets, as of December 31, 2017.

U.S. bank customers have $337.4 million on deposit at 7 offices in OK run by 110 full-time employees. With that footprint, the bank holds loans and leases worth $327.2 million, including $246.5 million worth of real estate loans.

Overall, Bankrate believes that, as of December 31, 2017, All America Bank 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 key criteria Bankrate used to evaluate American banks.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an an institution's financial fortitude, capital is key. It works as a bulwark against losses and affords protection for depositors during periods of economic trouble for the bank. When it comes to safety and soundness, more capital is better.

All America Bank finished below the national average of 13.19 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

One essential measure of this buffer is a bank's Tier 1 capital ratio. All America Bank's Tier 1 capital ratio was 11.16 percent, exceeding the 6 percent level considered adequate by regulators, but under the national average of 25.67 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.

Overall, All America Bank held equity amounting to 10.51 percent of its assets, which was lower than the national average of 12.04 percent.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the bank's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets could eventually require a bank to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the bank, diminishing earnings and increasing the chances of a future failure.

All America Bank scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 37.70.

A handy indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, 1.72 percent of All America Bank's loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's above the national average of 1.14 percent.

Banks maintain a reserve known as an "allowance for loan and lease losses" to deal with troubled assets . The size of that reserve can be a handy indicator when evaluating a bank's ability to manage problem assets, especially when compared to the total amount of at-risk loans. Unfortunately, the FDIC did not provide information on All America Bank's loan loss allowance in its most recent filings.

Earnings score

A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand economic shocks. Losses, on the other hand, lessen a bank's ability to do those things.

All America Bank scored 22 out of a possible 30 on Bankrate's earnings test, better than the national average of 16.06.

One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. The most recent annualized quarterly return on equity for All America Bank was 13.67 percent, above the national average of 8.10 percent.

The bank reported net income of $5.9 million on total equity of $43.1 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.47 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 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.