Safe and Sound

Mid America Bank & Trust Company

Dixon, MO
4
Star Rating
Mid America Bank & Trust Company is a Dixon, MO-based, FDIC-insured bank founded in 1920. The bank has equity of $44.1 million on $179.3 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 51 full-time employees in 3 offices in MO, the bank holds loans and leases worth $100.2 million, $77.9 million of which are for real estate. The bank currently holds $133.4 million in deposits from U.S. customers.

Overall, Bankrate believes that, as of December 31, 2017, Mid America Bank & Trust Company 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 important criteria Bankrate used to score American banks.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for account holders during times of financial instability for the bank. It follows then that when it comes to measuring an an institution's financial stability, capital is essential. From a safety and soundness perspective, the more capital, the better.

Mid America Bank & Trust Company scored 26 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 13.13.

One widely followed measure of this buffer is a bank's Tier 1 capital ratio. Mid America Bank & Trust Company's Tier 1 capital ratio was 26.67 percent, above the 6 percent level regulators consider adequate, and above the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to economic headwinds.

Overall, Mid America Bank & Trust Company held equity amounting to 24.61 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

This test is intended to try to understand how the bank's reserves set aside to cover loan losses, as well as overall capitalization, could be affected by troubled assets, such as unpaid mortgages.

A bank with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, decreasing its cushion of equity. 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 increasing the chances of a future failure.

Mid America Bank & Trust Company finished below the national average of 37.49 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

The percentage of problem assets a bank holds compared to its total assets is a widely used indicator of asset quality.As of December 31, 2017, 0.66 percent of Mid America Bank & Trust Company'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 maintain a reserve to handle problem assets known as an "allowance for loan and lease losses." That reserve's size can be a helpful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of problem loans. Unfortunately, the FDIC did not provide information on Mid America Bank & Trust Company's loan loss allowance in its most recent filings.

Earnings score

A bank's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money have less ability to do those things.

On Bankrate's test of earnings, Mid America Bank & Trust Company scored 4 out of a possible 30, falling short of the national average of 15.12.

Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Mid America Bank & Trust Company was 1.38 percent, below the national average of 8.10 percent.

The bank reported net income of $495,000 on total equity of $44.1 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.30 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.