Safe and Sound

Alpine Capital Bank

New York, NY
5
Star Rating
New York, NY-based Alpine Capital Bank is an FDIC-insured bank founded in 2000. As of December 31, 2017, the bank held equity of $45.5 million on assets of $283.4 million.

Thanks to the work of 17 full-time employees, the bank currently holds loans and leases worth $109.4 million, $86.7 million of which are for real estate. U.S. bank customers currently have $235.5 million in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, Alpine Capital Bank exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the bank fared on the three key criteria Bankrate used to grade American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an a bank's financial strength, capital is essential. It works as a bulwark against losses and affords protection for depositors when a bank is experiencing economic instability. From a safety and soundness perspective, the more capital, the better.

Alpine Capital Bank racked up 24 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 13.13.

One important measure of this buffer is a bank's Tier 1 capital ratio. Alpine Capital Bank's Tier 1 capital ratio was 29.06 percent, exceeding the 6 percent level regulators consider adequate, and exceeding the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather economic downturns.

Overall, Alpine Capital Bank held equity amounting to 16.05 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the bank's loan loss reserves and overall capitalization.

Having lots of these kinds of assets suggests a bank could have to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, Alpine Capital Bank scored 40 out of a possible 40 points, beating the national average of 37.49 points.

The percentage of problem assets a bank holds compared to its total assets is a handy indicator of asset quality.As of December 31, 2017, 0.45 percent of Alpine Capital Bank's loans were noncurrent, meaning they were more than 90 days past due or were in non-accrual status. That's below the national average of 1.01 percent.

Banks maintain a reserve to deal with problem assets known as an "allowance for loan and lease losses." Comparing the reserve's size to the total amount of problem loans can be a widely used indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on Alpine Capital Bank's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.

Alpine Capital Bank beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Alpine Capital Bank's most recent annualized quarterly return on equity was 8.69 percent, above the national average of 8.10 percent.

The bank earned net income of $3.8 million on total equity of $45.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.39 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.