Greenville National Bank: Overview of the bank

Greenville National Bank was first established in the year 1934. The bank’s main office is located in the state of Ohio and in the city of Greenville. Greenville National Bank has been insured by the Federal Deposit Insurance Corporation since 1934 which is actually the first full year the FDIC existed. The agency was created in 1933 by the passing of the 1933 Banking Act.  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 $589 million ranks it in the 70th percentile of banks in the United States. Greenville National 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 10 offices. In terms of headcount, the bank currently has 93 employees.

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

As noted earlier, the bank has total assets of $589 million. In addition, the bank has a deposit base of $510 million and net loans outstanding of $308 million. In total, 87% 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, 53% 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 73% of the outstanding loans. Greenville National Bank has $96 million of outstanding 1-4 family residential loans (mortgages), which in total represents 31% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 14% and 7% of loans outstanding, respectively. Loans to farmland and farms represents 21% of loans outstanding.

Contact Information For Greenville National Bank

  • Main Office Address: 446 S. Broadway, Greenville, OH 45331
  • Website: www.bankgnb.bank
  • Total Number of Branches: 10
  • Total Number of International Branches: None
  • Number of Employees: 93
  • FDIC Certificate Number: 13703
  • FDIC Community Bank: Yes
  • FDIC Field Office: Columbus
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 295011
  • Bank Charter Class: N
  • Primary Regulator: OCC

Financial Overview

greenville national bank-financial-metrics-dec-21

Greenville National Bank has total assets of $589 million and over the past year its asset base has increased substantially, reporting an increase of 8.7%. In terms of the bank’s lending activities, net loans represented 52.3% of its total assets, and stood at $308 million. The bank’s loan portfolio has decreased over the past year, with a decrease of 4.2%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 31% of the bank’s loan book. The bank has $96 million of residential mortgages outstanding, which compares with $105 million in the prior year. This implies a decrease of 8.3% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 7.1% of its total lending and stood at $22 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 20.8% of its total loan portfolio. Credit card-related lending represents 0.4% 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 10.6% 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. 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. Greenville National Bank has total customer deposits of $510 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 10.4%. Furthermore, the bank has a loan to deposit ratio of 60% 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

greenville national bank-performance-metrics-dec-21

Above we have shown a summary of some of the performance metrics for Greenville National 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 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. 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 Greenville National 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 15.3% which is below the average U.S. bank.

Concluding Comments on Greenville National Bank

Overall, we believe Greenville National Bank deserves a rating of 3.5 out of 5.0, which is a very good rating. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its net interest margin is a downward force on its rating. On this metric, the bank is below the national average. Finally, please note that the rating information is based on our proprietary scoring system. This system was developed by us and leverages data from a nationwide bank study. Importantly, keep in mind that none of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.