Overview of the Bank of Soperton

The Bank of Soperton was established in 1903 and is one of a select number of banks in the country that have existed for over a century. Its main office is located in the state of Georgia in the city of Soperton. Georgia is home to 153 banks that collectively have $165,534 million of assets outstanding. The bank first got insured by the Federal Deposit Insurance Corporation in the year 1934 which is effectively the first year it was possible to get insured by the agency, which itself was founded in the prior year. The FDIC is also serves as the primary federal regulator for the bank. 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 $128 million ranks it in the 20th percentile of banks in the United States. The Bank of Soperton does not currently have any offices located outside of the United States, and functionally is a domestic bank. Within the U.S., the bank currently has 2 offices. In terms of headcount, the bank currently has 26 employees.

Overview of the Bank’s Assets and Liabilities

As previously indicated, the bank currently has total assets of $128 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $103 million and a deposit base of $115 million. Transactional deposits comprised 45% of the bank’s outstanding deposits. Meanwhile, deposits from domestic customers represented a total of 100% of the deposits outstanding and of this amount, 82% are currently insured. Looking at the asset side of the balance sheet, 81% of the bank’s total asset base consisted of loans to customers (keep in mind that this is on a gross basis). Loans for real estate purposes alone comprised 71% of the outstanding loans. The Bank of Soperton has $34 million of outstanding 1-4 family residential loans (mortgages), which in total represents 33% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 8% and 19% of loans outstanding, respectively. Loans to farmland and farms represents 17% of loans outstanding.

Contact Information For The Bank of Soperton

  • Main Office Address: 1202 2nd St, Soperton, GA 30457
  • Website: https://tbos-mpcb.bank
  • Total Number of Branches: 2
  • Total Number of International Branches: None
  • Number of Employees: 26
  • FDIC Certificate Number: 889
  • FDIC Community Bank: Yes
  • FDIC Field Office: Albany Ga
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 260831
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

bank of soperton-financial-metrics-sept-21

The bank had total assets of $128 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 18.0%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $103 million based on the latest available information. Its net loans outstanding have increased substantially over the past year, with an increase of 32.3%. Within the loan portfolio, residential mortgages make up 33% of the outstanding loans of the bank, and over the past year have registered an increase of 34.8%. In addition, the bank provides loans to commercial and industrial businesses, which represents 18.6% of its total lending and stood at $19 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 16.8% 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 2.9% 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 Soperton, they have total customer deposits of $115 million which over the past year has registered an increase of 17.8%. In addition, the bank has a loan to deposit ratio of 89%, which is above 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.

Bank Performance and Capital Metrics

bank of soperton-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for the Bank of Soperton. Next to these metrics are the equivalent for the average U.S. bank. Starting with its return on assets, over the past year it has improved. 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. Moving on to 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 improved. In addition, we can also see that the bank is above the average bank on this metric. Another metric that is helpful in contextualizing a bank’s return on equity is its leverage ratio. A lower ratio means that the bank has a higher reliance on borrowing to deliver its return on equity. In this case, the total leverage ratio is currently below the average U.S. bank, and has been relatively stable over the past year. 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 Soperton’s tier 1 capital ratio has declined over the past year, and is below the average U.S. bank.

Final Thoughts: Bank of Soperton

Overall, we believe the Bank of Soperton deserves a rating of 3.9 out of 5.0, which is a very good rating. While for example, the bank shines when it comes to its net interest margin, which is above the national average, its tier 1 capital is a downward force on its rating. On this metric, the bank is below the national average. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.