Overview of Dogwood State Bank
Dogwood State Bank is a mid-sized bank that has been operating for many years and that first began operations in the year 2001. The bank’s primary office is located in the city of Raleigh which is found in the state of North Carolina. 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. Dogwood State Bank has been insured by the FDIC since 2001 and has remained insured by the independent agency 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 $881 million ranks it in the 80th percentile of banks in the United States. Dogwood State 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 8 offices. As of this writing, the bank employed a total of 109 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 $881 million, total loans extended to customers of $612 million and customer deposits of $743 million. Domestic deposits currently represent (in terms of total size), 84% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 52% are insured based on the latest available information. Loans extended to customers of the bank currently comprise 70% of the bank’s total assets. Loans extended to customers for real estate purposes represented 66% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Dogwood State Bank has $64 million of outstanding 1-4 family residential loans (mortgages), which in total represents 10% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 0% and 33% of loans outstanding, respectively. Loans to farmland and farms represents 1% of loans outstanding.
Contact Information For Dogwood State Bank
- Main Office Address: 5401 6 Forks Rd, Raleigh, NC 27609
- Website: www.dogwoodstatebank.com
- Total Number of Branches: 8
- Total Number of International Branches: None
- Number of Employees: 109
- FDIC Certificate Number: 57095
- FDIC Community Bank: Yes
- FDIC Field Office: Raleigh
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 3047659
- Bank Charter Class: NM
- Primary Regulator: FDIC
Financial Overview
The bank had total assets of $881 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 36.2%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $612 million based on the latest available information. Its net loans outstanding have increased substantially over the past year, with an increase of 19.8%. Residential mortgages comprise 10% of the outstanding loans of the bank. The outstanding balance of residential mortgages has increased substantially over the past year by 9.4%. In addition, the bank provides loans to commercial and industrial businesses, which represents 32.7% of its total lending and stood at $203 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 1.4% 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 0.0% of the bank’s total lending.
Bank Liquidity and Funding
How a bank funds its activities is an important area to assess and monitor. As a depositor you want to make sure the bank is conservatively funded, and the same goes for customers. Oftentimes one of the cheapest forms of funding is customer deposits. Dogwood State Bank has total customer deposits outstanding of $743 million. The bank’s deposit base has increased substantially over the past year, growing 90.0%. Furthermore, the bank has a loan to deposit ratio of 82% which is above 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
Bank Performance and Capital Metrics
The above chart provides a brief summary of some of the key performance metrics for Dogwood State Bank. Next to these metrics are the equivalent for 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. 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 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 declined over the past year and is currently above the national average. Finally, Dogwood State Bank’s Tier 1 capital ratio has declined over the past year. On this metric the bank is above the national average.
Concluding Comments on Dogwood State Bank
After factoring in all the relevant information and data, our final rating for Dogwood State Bank is 3.1 out of 5.0, which is above average. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its return on assets 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.