Safe and Sound

The First Citizens National Bank of Upper Sandusky

Upper Sandusky, OH
4
Star Rating
The First Citizens National Bank of Upper Sandusky is an Upper Sandusky, OH-based, FDIC-insured bank founded in 1902. The bank holds equity of $38.7 million on assets of $276.9 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 66 full-time employees in 6 offices in OH, the bank has amassed loans and leases worth $175.4 million, including real estate loans of $139.7 million. The bank currently holds $216.0 million in deposits from U.S. customers.

Overall, Bankrate believes that, as of December 31, 2017, The First Citizens National Bank of Upper Sandusky exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the bank fared on the three important criteria Bankrate used to grade U.S. banks.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for account holders when a bank is struggling financially. It follows then that when it comes to measuring an a bank's financial resilience, capital is useful. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a bank's capital, The First Citizens National Bank of Upper Sandusky achieved a score of 18 out of a possible 30 points, above the national average of 13.13.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. The First Citizens National Bank of Upper Sandusky's Tier 1 capital ratio was 20.84 percent, higher than the 6 percent level regulators consider adequate, but less than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.

Overall, The First Citizens National Bank of Upper Sandusky held equity amounting to 13.99 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the bank's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets may eventually require a bank 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 interest for the bank, resulting in lower earnings and potentially more risk of a future failure.

The First Citizens National Bank of Upper Sandusky beat out the national average of 37.49 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A useful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, 1.55 percent of The First Citizens National Bank of Upper Sandusky'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 known as an "allowance for loan and lease losses" to deal with problem assets . Comparing the size of that reserve 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 The First Citizens National Bank of Upper Sandusky's loan loss allowance in its most recent filings.

Earnings score

A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, giving a boost to its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, The First Citizens National Bank of Upper Sandusky scored 0 out of a possible 30, failing to reach the national average of 15.12.

One important measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. The most recent annualized quarterly return on equity for The First Citizens National Bank of Upper Sandusky was -2.19 percent, below the national average of 8.10 percent.

The bank reported net income of $-889,000 on total equity of $38.7 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of -0.34 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.