Safe and Sound

One Bank & Trust, National Association

Little Rock, AR
1
Star Rating
One Bank & Trust, National Association is a Little Rock, AR-based, FDIC-insured bank that opened its doors in 1957. As of December 31, 2017, the bank held equity of $6.9 million on assets of $274.4 million.

With 59 full-time employees in 7 offices in AR, the bank currently holds loans and leases worth $206.5 million, including real estate loans of $167.4 million. U.S. bank customers currently have $221.0 million in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, One Bank & Trust, National Association exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. 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 is a useful measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for accountholders when a bank is struggling financially. When looking at safety and soundness, the more capital, the better.

One Bank & Trust, National Association fell short of the national average of 13.13 on our test to measure capital adequacy, receiving a score of 0 out of a possible 30 points.

A bank's Tier 1 capital ratio is a widely used measure of this buffer. One Bank & Trust, National Association's Tier 1 capital ratio was 3.85 percent, lower than the 6 percent level regulators consider adequate, and below the national average of 25.65 percent. A higher capital ratio suggests the bank will be better able to weather economic challenges.

Overall, One Bank & Trust, National Association held equity amounting to 2.51 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 problem assets, such as unpaid loans, on the bank's capitalization and allocated loan loss reserves.

Having a large number of these types of assets could eventually require a bank to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the bank, resulting in reduced earnings and potentially more risk of a future failure.

One Bank & Trust, National Association finished below the national average of 37.49 on Bankrate's asset quality test, racking up 8 out of a possible 40 points .

The percentage of problem assets a bank holds compared to its total assets is a helpful indicator of asset quality.As of December 31, 2017, 2.71 percent of One Bank & Trust, National Association's loans were noncurrent, meaning 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 maintain a reserve to handle troubled assets known as an "allowance for loan and lease losses." 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 One Bank & Trust, National Association's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.

One Bank & Trust, National Association received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for One Bank & Trust, National Association was -51.12 percent, below the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank recorded net income of $-4.8 million on total equity of $6.9 million. The bank experienced an annualized return on average assets, or ROA, of -1.67 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.