Charlotte State Bank: Overview of the bank

Founded in 1987, Charlotte State Bank is a mid-sized bank. The company’s main office is located in the city of Port Charlotte in the state of Florida. There are a total of 99 banks operating in the state of Florida and combined these banks have $259,625 million of assets. Charlotte State Bank has been operating for 35 years. 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. Charlotte State Bank has been insured by the FDIC since 1987 and has remained insured by the independent agency ever since. The FDIC is also serves as the primary federal regulator for the bank. As a result of its size and presence, the bank is considered a national bank. Based on our estimates, we believe its asset base of $586 million ranks it in the 70th percentile of banks in the United States. Charlotte State Bank 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 6 offices. As of this writing, the bank employed a total of 60 people.

Details on the Bank’s Asset Composition

Some of the key components of the bank’s balance sheet are total assets of $586 million, total loans extended to customers of $212 million and customer deposits of $533 million. Domestic deposits currently represent (in terms of total size), 91% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 82% are insured based on the latest available information. Loans extended to customers of the bank currently comprise 37% of the bank’s total assets. Loans extended to customers for real estate purposes represented 97% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Charlotte State Bank has $74 million of outstanding 1-4 family residential loans (mortgages), which in total represents 34% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 0% and 2% of loans outstanding, respectively.

Contact Information and Other Facts For Charlotte State Bank

  • Main Office Address: 1100 Tamiami Trail, Port Charlotte, FL 33953
  • Website:
  • Total Number of Branches: 6
  • Total Number of International Branches: None
  • Number of Employees: 60
  • FDIC Certificate Number: 27086
  • FDIC Community Bank: No
  • FDIC Field Office: Tampa
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 1158878
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

charlotte state bank-financial-metrics-sept-21

Charlotte State Bank has total assets of $586 million and over the past year its asset base has increased substantially, reporting an increase of 27.7%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $212 million based on the latest available information. Its net loans outstanding have decreased over the past year, with a decrease of 7.1%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 34% of the bank’s loan book. The bank has $74 million of residential mortgages outstanding, which compares with $80 million in the prior year. This implies a decrease of 6.9% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 2.3% of its total lending and stood at $5 million based on the latest available information. 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 0.1% of the bank’s total lending.

Bank Liquidity and Funding

Liquidity and funding are two important considerations when evaluating a bank. It gives us a sense of how a bank finances its activities and can help both depositors and customers better understand a banks financial positioning. Oftentimes one of the cheapest forms of funding is customer deposits. Charlotte State Bank has total customer deposits outstanding of $533 million. The bank’s deposit base has increased substantially over the past year, growing 29.3%. Furthermore, the bank has a loan to deposit ratio of 40% 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

charlotte state bank-performance-metrics-sept-21

Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for Charlotte State Bank 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 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 declined. 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 declined 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. Charlotte State Bank’s tier 1 capital ratio has improved over the past year, and is above the average U.S. bank.

Conclusion: Charlotte State Bank

Overall, we believe Charlotte State Bank deserves a rating of 3.9 out of 5.0, which is a very good rating. 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. 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.