Overview of State Bank of Cochran

State Bank of Cochran was established in 1922. Its main office is located in the state of Georgia in the city of Cochran. Georgia is home to 153 banks that collectively have $165,534 million of assets outstanding. 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. Generally speaking, the FDIC provides insurance coverage of up to $250,000 per depositor, per insured bank and for each account ownership category. State Bank of Cochran has been insured by the FDIC since 1934 which is the year after the FDIC was created by the 1933 Banking Act. 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 $246 million ranks it in the 40th percentile of banks in the United States. State Bank of Cochran is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 4 offices. Finally, the bank currently has a total employee base of 50 people.

Details on the Bank’s Asset Composition

As previously indicated, the bank currently has total assets of $246 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $133 million and a deposit base of $209 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. As we look at the composition of the banks assets, as noted earlier the bank is primarily engaged in providing 1-4 family residential loans (mortgages) and farm-related loans to its customers. Overall, customer loans currently make up 57% of the bank’s total assets. State Bank of Cochran has $36 million of outstanding 1-4 family residential loans (mortgages), which in total represents 26% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 11% and 6% of loans outstanding, respectively. Loans to farmland and farms represents 11% of loans outstanding.

Contact Information For State Bank of Cochran

  • Main Office Address: 112 E Beech St., Cochran, GA 31014
  • Website: http://statebankofcochran.com/
  • Total Number of Branches: 4
  • Total Number of International Branches: None
  • Number of Employees: 50
  • FDIC Certificate Number: 872
  • FDIC Community Bank: Yes
  • FDIC Field Office: Albany Ga
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 333034
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

state bank of cochran-financial-metrics-sept-21

State Bank of Cochran has total assets of $246 million and over the past year its asset base has increased, reporting an increase of 5.7%. Moving to the other side of the balance sheet, we see net loans of $133 million which compares with $125 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 6.7%. Residential mortgages comprise 26% of the outstanding loans of the bank. The outstanding balance of residential mortgages has decreased over the past year by 14.4%. In addition, the bank provides loans to commercial and industrial businesses, which represents 6.2% 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 11.0% 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 7.0% 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. State Bank of Cochran has total customer deposits of $209 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 7.0%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, State Bank of Cochran has a loan to deposit ratio of 63% which is well below the average. A lower ratio is generally better as it indicates that the lending activities of a bank are more comfortably covered by its deposit base. Deposits, as noted earlier, are usually a cost effective source of financing. The entirety of the bank’s deposit base stems from domestic depositors.

Bank Performance and Capital Metrics

state bank of cochran-performance-metrics-sept-21

Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for State Bank of Cochran compared with 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 above 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 declined. In addition, we can also see that the bank is above 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 above the average U.S. bank, and has declined over the past year. Finally, State Bank of Cochran’s Tier 1 capital ratio has declined over the past year. On this metric the bank is above the national average.

Concluding Comments on State Bank of Cochran

Ultimately, after considering all of the relevant factors we rate State Bank of Cochran 4.5 out of 5.0, which is exceptional. 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.