Introduction to the Bank of New Glarus
Founded in 1893, , the Bank of New Glarus is a relatively small bank. The company’s main office is located in the city of New Glarus in the state of Wisconsin. There are a total of 176 banks operating in the state of Wisconsin and combined these banks have $141,976 million of assets. , the Bank of New Glarus has been operating for 129 years. The Bank of New Glarus has been insured by the Federal Deposit Insurance Corporation since 1934 which is actually the first full year the FDIC existed. The agency was created in 1933 by the passing of the 1933 Banking Act. In addition, the FDIC is the primary federal regulator for the bank and is focused on supervising and examining the bank for operational safety and soundness. 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 $424 million ranks it in the 60th percentile of banks in the United States. The Bank of New Glarus is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 6 offices. In terms of headcount, the bank currently has 70 employees.
Details on the Bank’s Asset Composition
The bank currently has total assets of $424 million, total net loans to customers of $255 million and total deposits outstanding of $348 million as of this writing. Approximately 43% of the bank’s deposits outstanding were transactional deposits, while domestic depositors made up 100% of the bank’s total deposit base. 71% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 62% of the bank’s total assets. Loans extended to customers for real estate purposes represented 65% of the total loans outstanding. In addition, 100% of real estate loans were domestic. The Bank of New Glarus has $46 million of outstanding 1-4 family residential loans (mortgages), which in total represents 18% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 2% and 25% of loans outstanding, respectively. Loans to farmland and farms represents 14% of loans outstanding.
Contact Information and Other Facts For The Bank of New Glarus
- Main Office Address: 501 1st St., New Glarus, WI 53574
- Website: www.thebankofnewglarus.bank
- Total Number of Branches: 6
- Total Number of International Branches: None
- Number of Employees: 70
- FDIC Certificate Number: 10378
- FDIC Community Bank: Yes
- FDIC Field Office: Madison
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 797140
- Bank Charter Class: NM
- Primary Regulator: FDIC
Financial Overview
The Bank of New Glarus has total assets of $424 million which compares with $361 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 17.5%. Moving to the other side of the balance sheet, we see net loans of $255 million which compares with $253 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 0.7%. Within the loan portfolio, residential mortgages make up 18% of the outstanding loans of the bank, and over the past year have registered a decrease of 3.9%. In addition, the bank provides loans to commercial and industrial businesses, which represents 25.2% of its total lending and stood at $66 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 13.8% of its total loan portfolio. Credit card-related lending represents 0.2% of the banks total lending. This represents the outstanding balance of credit cards that the bank has issued to its customers. 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 1.4% 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. Oftentimes one of the cheapest forms of funding is customer deposits. The Bank of New Glarus has total customer deposits outstanding of $348 million. The bank’s deposit base has increased substantially over the past year, growing 21.5%. In addition, the bank has a loan to deposit ratio of 73%, which is below the average of banks in the United States. The average in the United States is approximately 82% and as a reminder, a lower ratio indicates greater liquidity. The entirety of the bank’s deposit base stems from domestic depositors.
Bank Performance and Capital Metrics
Above we have shown a summary of some of the performance metrics for the Bank of New Glarus compared with the average U.S. bank. As a starting point, looking at 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 above 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 been relatively stable. In addition, we can also see that the bank is above the average bank on this metric. The bank’s total leverage ratio has been relatively stable over the past year and is currently below the national average. Last but certainly not least is the tier 1 capital ratio. This is an important measure of the financial strength of a bank and its balance sheet. the Bank of New Glarus’s tier 1 capital ratio has improved over the past year, and is below the average U.S. bank.
Concluding Comments on the Bank of New Glarus
Our final rating for the Bank of New Glarus, after assessing the bank on several important metrics, is 3.6 out of 5.0, which is very good. Specifically, an area of strength for the bank would be its cost of funds which is above the national average. On the contrary, the bank’s net interest margin is one of the primary drawbacks on its rating as on this metric, the bank is below 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.