Introduction to Garden Plain State Bank

Garden Plain State Bank was established in 1966. Its main office is located in the state of Kansas in the city of Wichita. Kansas is home to 217 banks that collectively have $88,538 million of assets outstanding. 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. Garden Plain State Bank has been insured by the FDIC since 1967 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 $141 million ranks it in the 30th percentile of banks in the United States. Garden Plain 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 2 offices, all of which are located in the state of Kansas. As of this writing, the bank employed a total of 20 people.

Overview of the Bank’s Assets and Liabilities

Some of the key components of the bank’s balance sheet are total assets of $141 million, total loans extended to customers of $49 million and customer deposits of $121 million. In total, 86% of the bank’s total assets are made up of domestic deposits, and domestic deposits also represent 100% of the bank’s deposit base. Overall, 78% of the bank’s domestic deposits are insured. Looking at the asset side of the balance sheet, 35% 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 80% of the outstanding loans. Garden Plain State Bank has $12 million of outstanding 1-4 family residential loans (mortgages), which in total represents 25% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 4% and 15% of loans outstanding, respectively. Loans to farmland and farms represents 3% of loans outstanding.

Contact Information For Garden Plain State Bank

  • Main Office Address: 10526 W. Maple St., Wichita, KS 67209
  • Website: http://www.gpsbank.com
  • Total Number of Branches: 2
  • Total Number of International Branches: None
  • Number of Employees: 20
  • FDIC Certificate Number: 19687
  • FDIC Community Bank: Yes
  • FDIC Field Office: Wichita
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 987651
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

garden plain state bank-financial-metrics-sept-21

Garden Plain State Bank has total assets of $141 million which compares with $125 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 13.0%. In terms of the bank’s lending activities, net loans represented 34.8% of its total assets, and stood at $49 million. The bank’s loan portfolio has decreased over the past year, with a decrease of 6.0%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 25% of the bank’s loan book. The bank has $12 million of residential mortgages outstanding, which compares with $11 million in the prior year. This implies an increase of 11.5% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 15.2% of its total lending and stood at $8 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 3.2% of its total loan portfolio. Credit card-related lending represents 0.3% of the banks total lending. This represents the outstanding balance of credit cards that the bank has issued to its customers. 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

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 Garden Plain State Bank, they have total customer deposits of $121 million which over the past year has registered an increase of 12.6%. Furthermore, the bank has a loan to deposit ratio of 41% 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. The entirety of the bank’s deposit base stems from domestic depositors.

Bank Performance and Capital Metrics

garden plain state bank-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for Garden Plain State Bank. 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 been relatively stable. 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. 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. Garden Plain State Bank’s tier 1 capital ratio has been relatively stable over the past year, and is above the average U.S. bank.

Final Thoughts: Garden Plain State Bank

After factoring in all the relevant information and data, our final rating for Garden Plain State Bank is 3.9 out of 5.0, which is very good. 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. 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.