Overview of Pauls Valley National Bank

Pauls Valley National Bank is a relatively small bank that has been operating for over a century and that first began operations in the year 1905. The bank’s primary office is located in the city of Pauls Valley which is found in the state of Oklahoma. The Federal Deposit Insurance Corporation has provided insurance to the bank since 1934. 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.  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 $312 million ranks it in the 50th percentile of banks in the United States. Pauls Valley National Bank does not currently have any offices located outside of the United States, and functionally is a domestic bank. Within the U.S., the bank currently has 6 offices. As of this writing, the bank employed a total of 57 people.

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

As previously indicated, the bank currently has total assets of $312 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $157 million and a deposit base of $277 million. Overall, 43% 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, 77% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 51% of the bank’s total assets. Loans extended to customers for real estate purposes represented 51% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Pauls Valley National Bank has $10 million of outstanding 1-4 family residential loans (mortgages), which in total represents 6% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 16% and 26% of loans outstanding, respectively. Loans to farmland and farms represents 7% of loans outstanding.

Contact Information For Pauls Valley National Bank

  • Main Office Address: 101 W. Paul Ave., Pauls Valley, OK 73075
  • Website: https://www.pvnb.com/
  • Total Number of Branches: 6
  • Total Number of International Branches: None
  • Number of Employees: 57
  • FDIC Certificate Number: 4173
  • FDIC Community Bank: Yes
  • FDIC Field Office: Oklahoma City
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 454658
  • Bank Charter Class: N
  • Primary Regulator: OCC

Financial Overview

pauls valley national bank-financial-metrics-sept-21

Pauls Valley National Bank has total assets of $312 million and over the past year its asset base has increased substantially, reporting an increase of 13.0%. Moving to the other side of the balance sheet, we see net loans of $157 million which compares with $148 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 6.0%. Residential mortgages comprise 6% of the outstanding loans of the bank. The outstanding balance of residential mortgages has decreased over the past year by 7.9%. In addition, the bank provides loans to commercial and industrial businesses, which represents 26.0% of its total lending and stood at $41 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 6.6% 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 6.6% 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. Customer deposits is usually one of the cheapest ways to finance a bank. This is especially the case for accounts that don’t pay interest, such as checking accounts. Pauls Valley National Bank has total customer deposits of $277 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 14.6%. In addition, the bank has a loan to deposit ratio of 57%, 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

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Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for Pauls Valley National Bank 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. 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. Last but certainly not least is the tier 1 capital ratio. This is an important measure of the financial strength of a bank and its balance sheet. Pauls Valley National Bank’s tier 1 capital ratio has improved over the past year, and is below the average U.S. bank.

Concluding Comments on Pauls Valley National Bank

Ultimately, after considering all of the relevant factors we rate Pauls Valley National Bank 2.9 out of 5.0, which is above average. 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.