Overview of Clarion County Community Bank

Established in the year 2004 and with its main office located in the city of Clarion which is located in the state of Pennsylvania, Clarion County Community Bank is a relatively small bank that has been operating for 18 years. Clarion County Community Bank has been insured by the Federal Deposit Insurance Corporation since 2004 and the independent agency has provided insurance to the bank ever since. 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 $201 million ranks it in the 40th percentile of banks in the United States. Clarion County Community Bank is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 4 offices. Finally, the bank currently has a total employee base of 45 people.

Discussion of the key components of the Bank’s Balance Sheet

Some of the key components of the bank’s balance sheet are total assets of $201 million, total loans extended to customers of $151 million and customer deposits of $177 million. Overall, 28% of the bank’s deposits outstanding were transactional deposits. Transactional accounts are accounts like checking accounts which will tend to have more volatile balances. From an operational standpoint non-transactional accounts are more stable and attractive. In terms of the location of depositors, domestic depositors made up 100% of the bank’s total deposit base. Within this, 84% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 76% of the bank’s total assets. Loans extended to customers for real estate purposes represented 87% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Clarion County Community Bank has $68 million of outstanding 1-4 family residential loans (mortgages), which in total represents 45% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 3% and 9% of loans outstanding, respectively. Loans to farmland and farms represents 1% of loans outstanding.

Contact Information For Clarion County Community Bank

  • Main Office Address: 333 Main St, Clarion, PA 16214
  • Website: http://www.clarionbank.com
  • Total Number of Branches: 4
  • Total Number of International Branches: None
  • Number of Employees: 45
  • FDIC Certificate Number: 57624
  • FDIC Community Bank: Yes
  • FDIC Field Office: Wexford
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 3185579
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

clarion county community bank-financial-metrics-sept-21

The bank had total assets of $201 million based on the latest available information. Its total assets have increased over the past year, with an increase of 4.3%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $151 million based on the latest available information. Its net loans outstanding have increased substantially over the past year, with an increase of 7.0%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 45% of the bank’s loan book. The bank has $68 million of residential mortgages outstanding, which compares with $64 million in the prior year. This implies an increase of 7.2% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 9.4% of its total lending and stood at $14 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 1.2% 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 1.6% 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. 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 Clarion County Community Bank, they have total customer deposits of $177 million which over the past year has registered an increase of 4.9%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Clarion County Community Bank has a loan to deposit ratio of 86% which is above the average. A lower ratio is generally better as it indicates that the lending activities of a bank are more comfortably covered by its deposit base. Deposits, as noted earlier, are usually a cost effective source of financing. Effectively all of the bank’s deposit base is funded by domestic sources.

Bank Performance and Capital Metrics

clarion county community 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 Clarion County Community Bank 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 improved. 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. 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 below 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. Finally, we could not find Clarion County Community Bank’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 15.4% which is below the average U.S. bank.

Final Thoughts: Clarion County Community Bank

In conclusion, when we look at all the various factors and data we give Clarion County Community Bank a 2.4 out of 5.0 rating, which we consider to be 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.