Safe and Sound

Jackson Savings Bank, SSB

Sylva, NC
4
Star Rating
Jackson Savings Bank, SSB is an FDIC-insured bank founded in 1955 and currently based in Sylva, NC. Regulatory filings show the bank having equity of $6.6 million on $32.7 million in assets, as of December 31, 2017.

Thanks to the work of 9 full-time employees in 2 offices in NC, the bank has amassed loans and leases worth $24.9 million, including $24.8 million worth of real estate loans. The bank currently holds $26.1 million in deposits from U.S. customers.

Overall, Bankrate believes that, as of December 31, 2017, Jackson Savings Bank, SSB exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the bank did on the three major criteria Bankrate used to score U.S. banks.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an an institution's financial stability, capital is crucial. It works as a cushion against losses and as protection for depositors when a bank is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

Jackson Savings Bank, SSB achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 13.13.

One important measure of this buffer is a bank's Tier 1 capital ratio. Jackson Savings Bank, SSB's Tier 1 capital ratio was 39.16 percent, above the 6 percent level considered adequate by regulators, and exceeding the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial downturns.

Overall, Jackson Savings Bank, SSB held equity amounting to 20.05 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid mortgages, on the bank's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets could eventually force a bank to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, Jackson Savings Bank, SSB scored 36 out of a possible 40 points, lower than the national average of 37.49 points.

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, 1.43 percent of Jackson Savings Bank, SSB'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 handle 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 problem assets. Unfortunately, the FDIC did not provide information on Jackson Savings Bank, SSB's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. However, banks that are losing money are less able to do those things.

On Bankrate's earnings test, Jackson Savings Bank, SSB scored 2 out of a possible 30, falling short of the national average of 15.12.

Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Jackson Savings Bank, SSB was 0.62 percent, below the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank reported net income of $41,000 on total equity of $6.6 million. The bank experienced an annualized return on average assets, or ROA, of 0.12 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.