Safe and Sound

Bessemer Trust Company, National Association

New York, NY
5
Star Rating
Started in 1974, Bessemer Trust Company, National Association is an FDIC-insured bank based in New York, NY. Regulatory filings show the bank having equity of $226.3 million on $2.41 billion in assets, as of December 31, 2017.

Thanks to the efforts of 510 full-time employees, the bank holds loans and leases worth $533.7 million, including real estate loans of $0. U.S. bank customers currently have $2.09 billion in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, Bessemer Trust Company, National Association exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the bank did on the three key criteria Bankrate used to score American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for depositors when a bank is experiencing financial trouble. When it comes to safety and soundness, more capital is preferred.

Bessemer Trust Company, National Association fell below the national average of 13.13 on our test to measure the adequacy of a bank's capital, scoring 4 out of a possible 30 points.

A bank's Tier 1 capital ratio is an important measure of this buffer. Bessemer Trust Company, National Association's Tier 1 capital ratio was 19.35 percent, exceeding the 6 percent level regulators consider adequate, but lower than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.

Overall, Bessemer Trust Company, National Association held equity amounting to 9.39 percent of its assets, which was lower than the national average of 12.03 percent.

Asset Quality Score

This test is intended to estimate how the bank's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A bank with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, cutting down on its buffer 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, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, Bessemer Trust Company, National Association scored 40 out of a possible 40 points, beating the national average of 37.49 points.

A widely used indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, none of Bessemer Trust Company, National Association'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 keep a reserve to handle problem assets known as an "allowance for loan and lease losses." How large that reserve is can be a useful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of at-risk loans. Unfortunately, the FDIC did not provide information on Bessemer Trust Company, 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. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.

Bessemer Trust Company, National Association outperformed the average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.

One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Bessemer Trust Company, National Association's most recent annualized quarterly return on equity was 32.81 percent, above the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank recorded net income of $73.4 million on total equity of $226.3 million. The bank experienced an annualized return on average assets, or ROA, of 3.22 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.