Marseilles Bank: Overview of the bank

Established in the year 1945 and with its main office located in the city of Marseilles which is located in the state of Illinois, Marseilles Bank is a relatively small bank that has been operating for 77 years. Marseilles Bank has been insured by the Federal Deposit Insurance Corporation since 1945 and the independent agency has provided insurance to the bank 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 $73 million ranks it in the 10th percentile of banks in the United States. Marseilles 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 2 offices. In terms of headcount, the bank currently has 11 employees.

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

As noted earlier, the bank has total assets of $73 million. In addition, the bank has a deposit base of $66 million and net loans outstanding of $25 million. Overall, 34% of the bank’s deposits outstanding were transactional deposits. Transactional accounts are accounts like checking accounts which will tend to have more volatile balances. From an operational standpoint non-transactional accounts are more stable and attractive. In terms of the location of depositors, domestic depositors made up 100% of the bank’s total deposit base. Within this, 83% of the domestic deposits outstanding are insured. Outstanding loans to the bank’s customers makes up 35% of the bank’s assets. Within this, real estate loans represented 78% of the total and 100% of real estate loans were domestic. Marseilles Bank has $17 million of outstanding 1-4 family residential loans (mortgages), which in total represents 66% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 19% and 2% of loans outstanding, respectively. Loans to farmland and farms represents 2% of loans outstanding.

Contact Information For Marseilles Bank

  • Main Office Address: 101 E. Bluff St., Marseilles, IL 61341
  • Website: www.marseillesbank.com
  • Total Number of Branches: 2
  • Total Number of International Branches: None
  • Number of Employees: 11
  • FDIC Certificate Number: 16318
  • FDIC Community Bank: Yes
  • FDIC Field Office: Princeton
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 104542
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

marseilles bank-financial-metrics-sept-21

Marseilles Bank has total assets of $73 million and over the past year its asset base has increased substantially, reporting an increase of 10.0%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $25 million based on the latest available information. Its net loans outstanding have decreased over the past year, with a decrease of 8.3%. 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 66% of the bank’s loan book. The bank has $17 million of residential mortgages outstanding, which compares with $18 million in the prior year. This implies a decrease of 7.4% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 1.5% of its total lending and stood at $ million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 2.1% 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 10.4% 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. Oftentimes one of the cheapest forms of funding is customer deposits. Marseilles Bank has total customer deposits outstanding of $66 million. The bank’s deposit base has increased substantially over the past year, growing 12.1%. In addition, the bank has a loan to deposit ratio of 38%, which is significantly below the average of banks in the United States. The average in the United States is approximately 82% and as a reminder, a lower ratio indicates greater liquidity. Effectively all of the bank’s deposit base is funded by domestic sources.

Bank Performance and Capital Metrics

marseilles bank-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for Marseilles 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 declined. 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. The bank’s total leverage ratio has declined over the past year and is currently below the national average. Finally, we could not find Marseilles 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 15.1% which is below the average U.S. bank.

Final Thoughts: Marseilles Bank

Overall, we believe Marseilles Bank deserves a rating of 2.8 out of 5.0, which is a above average 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. 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.