Safe and Sound

Resurgens Bank

Tucker, GA
5
Star Rating
Resurgens Bank is an FDIC-insured bank founded in 2008 and currently headquartered in Tucker, GA. As of June 30, 2017, the bank had equity of $19.1 million on assets of $163.3 million.

U.S. bank customers have $133.6 million on deposit at 2 offices in GA run by 29 full-time employees. With that footprint, the bank holds loans and leases worth $133.5 million, including real estate loans of $117.1 million.

Overall, Bankrate believes that, as of June 30, 2017, Resurgens Bank exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the bank faired on the three key criteria Bankrate used to score American banks on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a bulwark against losses and affords protection for accountholders during times of economic trouble for the bank. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, Resurgens Bank scored 14 out of a possible 30 points, exceeding the national average of 13.38.

A bank's Tier 1 capital ratio is a widely used measure of this buffer. Resurgens Bank's Tier 1 capital ratio was 13.89 percent, above the 6 percent level regulators consider adequate, but below the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to weather economic challenges.

Overall, Resurgens Bank held equity amounting to 11.67 percent of its assets, which was lower than the national average of 12.10 percent.

Asset Quality Score

This test's purpose is to try to understand how the bank's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A bank with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

Resurgens Bank scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 37.62.

The percentage of problem assets a bank holds compared to its total assets is a useful indicator of asset quality.As of June 30, 2017, none of Resurgens Bank'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 1.04 percent.

Banks keep a reserve known as an "allowance for loan and lease losses" to deal with troubled assets . Comparing the that reserve's size to the total amount of problematic loans can be a helpful indicator when evaluating a bank's ability to manage problem assets. Unfortunately, the FDIC did not provide information on Resurgens Bank'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, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's ability to do those things.

Resurgens Bank scored 22 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 16.52.

One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. Resurgens Bank's most recent annualized quarterly return on equity was 13.86 percent, above the national average of 9.28 percent.

For the twelve months ended June 30, 2017, the bank recorded net income of $1.3 million on total equity of $19.1 million. The bank reported an annualized return on average assets, or ROA, of 1.58 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 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.