Mound City Bank: Overview of the bank and other helpful Information
Mound City Bank was established in the year 1915 and is among just a handful of banks in the United States that have been operating for more than a century. The bank’s main office is located in Wisconsin state in the city of Platteville. 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. Mound City Bank has been insured by the FDIC since 1934 which is the year after the FDIC was created by the 1933 Banking Act. In addition, the FDIC is the primary federal regulator for the bank. Mainly because of its relative size 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 $437 million ranks it in the 60th percentile of banks in the United States. Mound City Bank 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 6 offices. As of this writing, the bank employed a total of 74 people.
Overview of the Bank’s Assets and Liabilities
As previously indicated, the bank currently has total assets of $437 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $308 million and a deposit base of $370 million. Domestic deposits currently represent (in terms of total size), 85% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 86% are insured based on the latest available information. Moving on to the bank’s assets, based on the latest information, loans to customers makes up 72% of the banks assets. Of this amount, loans related to real estate comprised 82% of gross loans outstanding. Mound City Bank has $77 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 1% and 3% of loans outstanding, respectively. Loans to farmland and farms represents 30% of loans outstanding.
Contact Information For Mound City Bank
Main Office Address: 25 E. Pine St., Platteville, WI 53818
Other Facts About The Bank
Find below additional data on the bank including helpful regulatory information.
- Total Number of Branches: 6
- Total Number of International Branches: None
- Number of Employees: 74
- FDIC Certificate Number: 9037
- FDIC Community Bank: Yes
- FDIC Field Office: Madison
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 259442
- Bank Charter Class: NM
- Primary Regulator: FDIC
The bank had total assets of $437 million based on the latest available information. Its total assets have increased over the past year, with an increase of 3.6% . Moving to the bank’s loan portfolio, the bank has net loans outstanding of $308 million based on the latest available information. Its net loans outstanding have increased over the past year, with an increase of 6.3% . Digging into the loan portfolio, we see that residential mortgages comprise 25% of the bank’s loan book. The bank has $77 million of residential mortgages outstanding, which compares with $69 million in the prior year. This implies an increase of 11.4% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 2.8% of its total lending and stood at $9 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 29.7% 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 0.4% of the bank’s total lending.
Bank Liquidity and Funding
How a bank funds its activities is an important area to assess and monitor. As a depositor you want to make sure the bank is conservatively funded, and the same goes for customers. Oftentimes, one of the cheapest forms of funding is customer deposits. Mound City Bank has total customer deposits outstanding of $370 million. The bank’s deposit base has increased over the past year, growing 5.9%. In addition, the bank has a loan to deposit ratio of 83%, which is above 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. The entirety of the bank’s deposit base stems from domestic depositors.
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 Mound City 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 above 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 declined. In addition, we can also see that the bank is above the average bank on this metric. The bank’s total leverage ratio has improved over the past year and is currently above the national average. Finally, Mound City Bank’s Tier 1 capital ratio has improved over the past year. On this metric the bank is below the national average.
Conclusion: Mound City Bank
After factoring in all the relevant information and data, our final rating for Mound City Bank is 3.5 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. Conversely 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.