Hinsdale Bank and Trust Company: Overview of the bank
Hinsdale Bank and Trust Company was established in 1993. Its main office is located in the state of Illinois in the city of Hinsdale. Illinois is home to 394 banks that collectively have $630,875 million of assets outstanding. The Federal Deposit Insurance Corporation has provided insurance to the bank since 1993. The FDIC is one of two governmental agencies that provides deposit insurance to American depositary institutions – the other is the National Credit Union Administration (NCUA). The FDIC’s mandate is mainly to insure deposits, but the agency also examines and supervises financial institutions and manages receiverships. As a result of its size and presence, the bank is considered a national bank. Based on our estimates, we believe its asset base of $4,088 million ranks it in the 90th percentile of banks in the United States. Hinsdale Bank and Trust Company does not currently have any offices located outside of the United States, and operationally is a purely domestic bank. Within the U.S., the bank currently has 16 offices. Finally, the bank currently has a total employee base of 208 people.
Overview of the Bank’s Assets and Liabilities
As previously indicated, the bank currently has total assets of $4,088 million, which makes it a mid-sized bank in the United States. The bank also has net loans outstanding to customers of $2,735 million and a deposit base of $3,440 million. Transactional deposits comprised 36% of the bank’s outstanding deposits. Meanwhile, deposits from domestic customers represented a total of 100% of the deposits outstanding and of this amount, 66% are currently insured. Moving on to the bank’s assets, based on the latest information, loans to customers makes up 67% of the banks assets. Of this amount, loans related to real estate comprised 37% of gross loans outstanding. Hinsdale Bank and Trust Company has $221 million of outstanding 1-4 family residential loans (mortgages), which in total represents 8% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 14% and 42% of loans outstanding, respectively.
Contact Information and Other Facts For Hinsdale Bank and Trust Company
- Main Office Address: 25 E. 1st St., Hinsdale, IL 60521
- Website: www.hinsdalebank.com
- Total Number of Branches: 16
- Total Number of International Branches: None
- Number of Employees: 208
- FDIC Certificate Number: 33849
- FDIC Community Bank: No
- FDIC Field Office: Chicago
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 2119773
- Bank Charter Class: N
- Primary Regulator: OCC
Hinsdale Bank and Trust Company has total assets of $4,088 million and over the past year its asset base has increased, reporting an increase of 6.7%. In terms of the bank’s lending activities, net loans represented 66.9% of its total assets, and stood at $2,735 million. The bank’s loan portfolio has decreased slightly over the past year, with a decrease of 0.2%. Digging into the loan portfolio, we see that residential mortgages comprise 8% of the bank’s loan book. The bank has $221 million of residential mortgages outstanding, which compares with $234 million in the prior year. This implies a decrease of 5.6% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 41.9% of its total lending and stood at $1,156 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
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. 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 Hinsdale Bank and Trust Company, they have total customer deposits of $3,440 million which over the past year has registered an increase of 7.7%. Furthermore, the bank has a loan to deposit ratio of 80% which is 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
Bank Performance and Capital Metrics
Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for Hinsdale Bank and Trust Company compared with the average U.S. bank. When it comes to 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. 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 below the average U.S. bank, and has been relatively stable over the past year. Finally, Hinsdale Bank and Trust Company’s Tier 1 capital ratio has been relatively stable over the past year. On this metric the bank is below the national average.
Final Thoughts: Hinsdale Bank and Trust Company
In conclusion, when we look at all the various factors and data we give Hinsdale Bank and Trust Company a 2.8 out of 5.0 rating, 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 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.