Overview of One Bank of Tennessee

The One Bank of Tennessee is a mid-sized bank whose main office is based in the state of Tennessee. 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 1901. The bank first got insured by the Federal Deposit Insurance Corporation in the year 1934 which is effectively the first year it was possible to get insured by the agency, which itself was founded in the prior year. 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 $1,407 million ranks it in the 80th percentile of banks in the United States. One Bank of Tennessee is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 21 offices. As of this writing, the bank employed a total of 225 people.

Details on the Bank’s Asset Composition

Some of the key components of the bank’s balance sheet are total assets of $1,407 million, total loans extended to customers of $709 million and customer deposits of $1,287 million. Transactional deposits comprised 59% of the bank’s outstanding deposits. Meanwhile, deposits from domestic customers represented a total of 100% of the deposits outstanding and of this amount, 74% are currently insured. Looking at the asset side of the balance sheet, 51% 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 88% of the outstanding loans. One Bank of Tennessee has $280 million of outstanding 1-4 family residential loans (mortgages), which in total represents 39% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 4% and 9% of loans outstanding, respectively. Loans to farmland and farms represents 3% of loans outstanding.

Contact Information For One Bank of Tennessee

  • Main Office Address: 140 S. Jefferson St., Cookeville, TN 38501
  • Website: https://onebanktn.com
  • Total Number of Branches: 21
  • Total Number of International Branches: None
  • Number of Employees: 225
  • FDIC Certificate Number: 8432
  • FDIC Community Bank: Yes
  • FDIC Field Office: Nashville
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 99536
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

one bank of tennessee-financial-metrics-sept-21

One Bank of Tennessee has total assets of $1,407 million and over the past year its asset base has increased substantially, reporting an increase of 11.2%. In terms of the bank’s lending activities, net loans represented 50.4% of its total assets, and stood at $709 million. The bank’s loan portfolio has decreased slightly over the past year, with a decrease of 1.8%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 39% of the bank’s loan book. The bank has $280 million of residential mortgages outstanding, which compares with $265 million in the prior year. This implies an increase of 5.8% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 8.6% of its total lending and stood at $61 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 2.7% of its total loan portfolio. Credit card-related lending represents 0.1% 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 2.1% 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. 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 One Bank of Tennessee, they have total customer deposits of $1,287 million which over the past year has registered an increase of 12.5%. In addition, the bank has a loan to deposit ratio of 55%, 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

one bank of tennessee-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for One Bank of Tennessee. 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 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. 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 above 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, One Bank of Tennessee’s Tier 1 capital ratio has improved over the past year. On this metric the bank is below the national average.

Final Thoughts: One Bank of Tennessee

After factoring in all the relevant information and data, our final rating for One Bank of Tennessee is 3.4 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. 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. 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.