Safe and Sound

First National Bank in Taylorville

Taylorville, IL
5
Star Rating
First National Bank in Taylorville is an FDIC-insured bank started in 1956 and currently headquartered in Taylorville, IL. As of December 31, 2017, the bank had equity of $31.4 million on assets of $191.0 million.

Thanks to the efforts of 31 full-time employees in 2 offices in IL, the bank currently holds loans and leases worth $79.9 million, including real estate loans of $48.7 million. The bank currently holds $156.7 million in deposits from U.S. customers.

Overall, Bankrate believes that, as of December 31, 2017, First National Bank in Taylorville exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the bank fared on the three key criteria Bankrate used to evaluate U.S. banks on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for depositors during times of economic instability for the bank. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When it comes to safety and soundness, more capital is preferred.

First National Bank in Taylorville exceeded the national average of 13.13 points on our test to measure capital adequacy, scoring 24 out of a possible 30 points.

One widely followed measure of this buffer is a bank's Tier 1 capital ratio. First National Bank in Taylorville's Tier 1 capital ratio was 31.02 percent, exceeding the 6 percent level regulators consider adequate, and higher than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather financial headwinds.

Overall, First National Bank in Taylorville held equity amounting to 16.46 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a bank to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the bank, pushing down earnings and elevating the chances of a failure in the future.

First National Bank in Taylorville scored above the national average of 37.49 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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, 1.25 percent of First National Bank in Taylorville'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 1.01 percent.

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

Earnings score

How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Banks that are losing money, however, are less able to do those things.

First National Bank in Taylorville outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. First National Bank in Taylorville's most recent annualized quarterly return on equity was 10.19 percent, above the national average of 8.10 percent.

The bank earned net income of $3.2 million on total equity of $31.4 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 1.61 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.