Introduction to Greenville Savings Bank

The Greenville Savings Bank is a relatively small bank whose main office is based in the state of Pennsylvania. The bank is primarily engaged in providing 1-4 family residential loans (mortgages) to its customers, but also provides commercial & industrial loans. The bank was founded in the year 1911. The bank first got insured by the Federal Deposit Insurance Corporation in the year 1953 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 $288 million ranks it in the 50th percentile of banks in the United States. Greenville Savings 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 3 offices, all of which are located in the state of Pennsylvania. In terms of headcount, the bank currently has 48 employees.

Details on the Bank’s Asset Composition

The bank currently has total assets of $288 million, total net loans to customers of $209 million and total deposits outstanding of $244 million as of this writing. Approximately 19% of the bank’s deposits outstanding were transactional deposits, while domestic depositors made up 100% of the bank’s total deposit base. 92% of the domestic deposits outstanding are insured. Moving on to the components of the bank’s assets we can see that loans provided to customers represent 73% of the banks total assets. Of this amount, loans related to real estate activities comprised 97% of gross loans outstanding. Greenville Savings Bank has $172 million of outstanding 1-4 family residential loans (mortgages), which in total represents 81% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 1% and 2% of loans outstanding, respectively.

Contact Information For Greenville Savings Bank

  • Main Office Address: 233 Main St., Greenville, PA 16125
  • Website: www.greenvillesavings.com
  • Total Number of Branches: 3
  • Total Number of International Branches: None
  • Number of Employees: 48
  • FDIC Certificate Number: 30637
  • FDIC Community Bank: Yes
  • FDIC Field Office: Wexford
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 357777
  • Bank Charter Class: SB
  • Primary Regulator: FDIC

Financial Overview

greenville savings bank-financial-metrics-sept-21

Greenville Savings Bank has total assets of $288 million which compares with $265 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 9.0%. Moving to the other side of the balance sheet, we see net loans of $209 million which compares with $192 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 9.2%. Within the loan portfolio, residential mortgages make up 81% of the outstanding loans of the bank, and over the past year have registered an increase of 4.5%. In addition, the bank provides loans to commercial and industrial businesses, which represents 1.9% of its total lending and stood at $4 million based on the latest available information. 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

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. Oftentimes one of the cheapest forms of funding is customer deposits. Greenville Savings Bank has total customer deposits outstanding of $244 million. The bank’s deposit base has increased substantially over the past year, growing 11.1%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Greenville Savings 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

greenville savings bank-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for Greenville Savings 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 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. 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. 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. Finally, we could not find Greenville Savings 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 21.3% which is above the average U.S. bank.

Conclusion: Greenville Savings Bank

Overall, we believe Greenville Savings Bank deserves a rating of 2.6 out of 5.0, which is a average rating. 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. 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.