Safe and Sound

Thomas County Federal Savings and Loan Association

Thomasville, GA
5
Star Rating
Thomasville, GA-based Thomas County Federal Savings and Loan Association is an FDIC-insured bank started in 1934. The bank has equity of $37.6 million on $273.5 million in assets, according to December 31, 2017, regulatory filings.

With 49 full-time employees in 2 offices in multiple states, the bank currently holds loans and leases worth $210.1 million, including real estate loans of $204.7 million. U.S. bank customers currently have $224.6 million in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, Thomas County Federal Savings and Loan Association exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the bank fared on the three major criteria Bankrate used to grade American banks on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

Thomas County Federal Savings and Loan Association exceeded the national average of 13.13 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

One essential measure of this buffer is a bank's Tier 1 capital ratio. Thomas County Federal Savings and Loan Association's Tier 1 capital ratio was 18.37 percent, higher than the 6 percent level regulators consider adequate, but under the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to economic challenges.

Overall, Thomas County Federal Savings and Loan Association held equity amounting to 13.75 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the bank's loan loss reserves and overall capitalization.

Having lots of these kinds of assets could eventually require a bank to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are 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.

Thomas County Federal Savings and Loan Association exceeded the national average of 37.49 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A widely used indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, 0.80 percent of Thomas County Federal Savings and Loan Association's loans were noncurrent, meaning 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 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 at-risk loans can be a helpful indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on Thomas County Federal Savings and Loan Association's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.

Thomas County Federal Savings and Loan Association did above-average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.

One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Thomas County Federal Savings and Loan Association's most recent annualized quarterly return on equity was 18.01 percent, above the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank reported net income of $6.1 million on total equity of $37.6 million. The bank had an annualized return on average assets, or ROA, of 2.36 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above 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.