Safe and Sound

Boston Trust & Investment Management Company

Boston, MA
5
Star Rating
Boston Trust & Investment Management Company is a Boston, MA-based, FDIC-insured bank started in 1960. Regulatory filings show the bank having equity of $42.1 million on assets of $46.7 million, as of December 31, 2017.

Thanks to the efforts of 60 full-time employees, the bank has amassed loans and leases worth $41,000, including real estate loans of $0. U.S. bank customers currently have $500,000 in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, Boston Trust & Investment Management Company 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 major criteria Bankrate used to evaluate American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a bank's financial resilience. It acts as a buffer against losses and provides protection for accountholders during times of financial trouble for the bank. When it comes to safety and soundness, the higher the capital, the better.

Boston Trust & Investment Management Company achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a bank's capital, above the national average of 13.13.

One widely used measure of this buffer is a bank's Tier 1 capital ratio. Boston Trust & Investment Management Company's Tier 1 capital ratio was 131.30 percent, higher than the 6 percent level considered adequate by regulators, and higher than the national average of 25.65 percent. A higher capital ratio suggests the bank will be better able to weather financial downturns.

Overall, Boston Trust & Investment Management Company held equity amounting to 90.26 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

This test is intended 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 past-due loans.

Having a large number of these kinds of assets may 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 no longer earning interest for the bank, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, Boston Trust & Investment Management Company scored 40 out of a possible 40 points, beating out the national average of 37.49 points.

A useful 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 Boston Trust & Investment Management Company'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 known as an "allowance for loan and lease losses" to deal with problem assets . Comparing the reserve's size to the total amount of problematic loans can be a handy indicator when evaluating a bank's ability to manage problem assets. Unfortunately, the FDIC did not provide information on Boston Trust & Investment Management Company's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.

Boston Trust & Investment Management Company beat the national average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.

One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for Boston Trust & Investment Management Company was 46.85 percent, above the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank recorded net income of $18.4 million on total equity of $42.1 million. The bank had an annualized return on average assets, or ROA, of 39.61 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.