Introduction to the Bank of Eufaula

The Bank of Eufaula is a relatively small bank that has been operating for over a century and that first began operations in the year 1911. The bank’s primary office is located in the city of Eufaula which is found in the state of Oklahoma. The Federal Deposit Insurance Corporation provides insurance for the bank, in addition to providing insurance to almost 5,000 other institutions in the United States. Generally speaking, the FDIC provides insurance coverage of up to $250,000 per depositor, per insured bank and for each account ownership category. The Bank of Eufaula has been insured by the FDIC since 1934 which is the year after the FDIC was created by the 1933 Banking Act.  Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $109 million ranks it in the 20th percentile of banks in the United States. The Bank of Eufaula is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 2 offices. As of this writing, the bank employed a total of 20 people.

Overview of the Bank’s Assets and Liabilities

Some of the key components of the bank’s balance sheet are total assets of $109 million, total loans extended to customers of $28 million and customer deposits of $95 million. Approximately 60% of the bank’s deposits outstanding were transactional deposits, while domestic depositors made up 100% of the bank’s total deposit base. 73% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 26% of the bank’s total assets. Loans extended to customers for real estate purposes represented 64% of the total loans outstanding. In addition, 100% of real estate loans were domestic. The Bank of Eufaula has $12 million of outstanding 1-4 family residential loans (mortgages), which in total represents 44% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 19% and 10% of loans outstanding, respectively. Loans to farmland and farms represents 8% of loans outstanding.

Contact Information For The Bank of Eufaula

  • Main Office Address: 102 N. Main, Eufaula, OK 74432
  • Website: www.bankofeufaula.com
  • Total Number of Branches: 2
  • Total Number of International Branches: None
  • Number of Employees: 20
  • FDIC Certificate Number: 4094
  • FDIC Community Bank: Yes
  • FDIC Field Office: Oklahoma City
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 343051
  • Bank Charter Class: SM
  • Primary Regulator: FED

Financial Overview

bank of eufaula-financial-metrics-sept-21

The bank had total assets of $109 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 9.9%. In terms of the bank’s lending activities, net loans represented 25.5% of its total assets, and stood at $28 million. The bank’s loan portfolio has decreased over the past year, with a decrease of 5.3%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 44% of the bank’s loan book. The bank has $12 million of residential mortgages outstanding, which compares with $14 million in the prior year. This implies a decrease of 8.2% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 10.3% of its total lending and stood at $3 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 7.6% of its total loan portfolio. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 9.2% of the bank’s total lending.

Bank Liquidity and Funding

While most banks are insured by the FDIC, the insurance coverage does not always provide full protection. Therefore, understanding a banks liquidity and funding is important to help assess the riskiness of a bank’s balance sheet. A large and growing deposit base is usually a good sign for a bank’s liquidity and funding. This is because customer deposits are often a cheap source of financing as many of those accounts do not pay interest or much interest. Looking at the Bank of Eufaula, they have total customer deposits of $95 million which over the past year has registered an increase of 13.7%. Furthermore, the bank has a loan to deposit ratio of 29% which is significantly below the national average. Banks in the United States have a loan to deposit ratio of approximately 82%. A lower ratio is better since it means that a bank’s lending activities are more comfortably covered by its deposit base. Effectively all of the bank’s deposit base is funded by domestic sources.

Bank Performance and Capital Metrics

bank of eufaula-performance-metrics-sept-21

Above we have shown a summary of some of the performance metrics for the Bank of Eufaula compared with the average U.S. bank. When it comes to the bank’s return on assets, over the past year it has declined. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has declined. In addition, we can also see that the bank is below the average bank on this metric. The bank’s total leverage ratio has declined over the past year and is currently above the national average. Finally, we could not find the Bank of Eufaula’s risk-weighted asset information for this period and therefore had to make some assumptions and estimates. We estimate that the bank had a tier 1 capital ratio of 19.4% which is above the average U.S. bank.

Conclusion: Bank of Eufaula

Overall, we believe the Bank of Eufaula deserves a rating of 2.9 out of 5.0, which is an above average rating. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its net interest margin is a downward force on its rating. On this metric, the bank is below the national average. As a reminder, our rating is based on our proprietary scoring system which uses data from an in-depth nationwide bank study we performed. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.