Overview of Dolores State Bank

Dolores State Bank was first established in the year 1959. The bank’s main office is located in the state of Colorado and in the city of Dolores. 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. Dolores State Bank has been insured by the FDIC since 1959 and has remained insured by the independent agency ever since. 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 $356 million ranks it in the 50th percentile of banks in the United States. Dolores State Bank is essentially a purely domestic bank from an operational standpoint. This is because the bank does not have offices outside of the United States. Within the U.S. the bank currently has 4 offices, all of which are located in the state of Colorado. In terms of headcount, the bank currently has 51 employees.

Details on the Bank’s Asset Composition

Some of the key components of the bank’s balance sheet are total assets of $356 million, total loans extended to customers of $195 million and customer deposits of $304 million. Domestic deposits currently represent (in terms of total size), 85% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 83% are insured based on the latest available information. Loans extended to customers of the bank currently comprise 56% of the bank’s total assets. Loans extended to customers for real estate purposes represented 86% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Dolores State Bank has $107 million of outstanding 1-4 family residential loans (mortgages), which in total represents 54% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 6% and 5% of loans outstanding, respectively. Loans to farmland and farms represents 8% of loans outstanding.

Contact Information For Dolores State Bank

  • Main Office Address: 101 S. 6th St., Dolores, CO 81323
  • Website: https://mydsb.com
  • Total Number of Branches: 4
  • Total Number of International Branches: None
  • Number of Employees: 51
  • FDIC Certificate Number: 17959
  • FDIC Community Bank: Yes
  • FDIC Field Office: Denver
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 63050
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

dolores state bank-financial-metrics-sept-21

Dolores State Bank has total assets of $356 million which compares with $301 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 18.0%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $195 million based on the latest available information. Its net loans outstanding have increased over the past year, with an increase of 4.4%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages, which make up the majority of the bank’s lending activities comprise 54% of the bank’s loan book. The bank has $107 million of residential mortgages outstanding, which compares with $97 million in the prior year. This implies an increase of 9.9% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 4.5% of its total lending and stood at $9 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 8.1% 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 3.6% 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. Customer deposits is usually one of the cheapest ways to finance a bank. This is especially the case for accounts that don’t pay interest, such as checking accounts. Dolores State Bank has total customer deposits of $304 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 19.8%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Dolores State Bank has a loan to deposit ratio of 64% which is well below 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.

Bank Performance and Capital Metrics

dolores 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 Dolores State 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 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 below 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 above 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. Dolores State Bank’s tier 1 capital ratio has declined over the past year, and is above the average U.S. bank.

Concluding Comments on Dolores State Bank

Ultimately, after considering all of the relevant factors we rate Dolores State Bank 4.3 out of 5.0, which is exceptional.  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.