Safe and Sound

Community Bank and Trust - West Georgia

Lagrange, GA
NR
Star Rating
Community Bank and Trust - West Georgia is an FDIC-insured bank started in 1984 and currently headquartered in Lagrange, GA. As of December 31, 2017, the bank had equity of $3.3 million on $80.3 million in assets.

With 35 full-time employees in 4 offices in GA, the bank holds loans and leases worth $47.4 million, including real estate loans of $41.7 million. U.S. bank customers currently have $76.8 million in deposits with the bank.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's a look at how the bank did on the three key criteria Bankrate used to grade American banks.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for depositors during periods of economic trouble for the bank. Therefore, when it comes to measuring an a bank's financial resilience, capital is important. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, Community Bank and Trust - West Georgia received a score of 0 out of a possible 30 points, failing to reach the national average of 13.13.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Community Bank and Trust - West Georgia's Tier 1 capital ratio was 6.51 percent, higher than the 6 percent level regulators consider adequate, but less than the national average of 25.65 percent. A higher capital ratio means the bank will be better able to weather financial downturns.

Overall, Community Bank and Trust - West Georgia held equity amounting to 4.05 percent of its assets, which was lower than the national average of 12.03 percent.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the bank's reserves set aside to cover loan losses, as well as overall capitalization.

A bank with lots of these kinds of assets may eventually be required to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a future failure.

Community Bank and Trust - West Georgia scored 0 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 37.49.

The percentage of problem assets a bank holds compared to its total assets is a useful indicator of asset quality.As of December 31, 2017, 0.70 percent of Community Bank and Trust - West Georgia's loans were noncurrent -- in other words, 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 deal with troubled assets known as an "allowance for loan and lease losses." That reserve's size can be a widely used indicator when evaluating a bank's ability to manage problem assets, especially when compared to the total amount of problem loans. Unfortunately, the FDIC did not provide information on Community Bank and Trust - West Georgia's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is affects its safety and soundness. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, diminish a bank's ability to do those things.

Community Bank and Trust - West Georgia scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 15.12.

One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Community Bank and Trust - West Georgia was 2.15 percent, below the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank reported net income of $69,000 on total equity of $3.3 million. The bank reported an annualized return on average assets, or ROA, of 0.08 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below 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.