Introduction to Table Grove State Bank

Established almost a century ago, Table Grove State Bank is a relatively small bank that was founded in the year 1946. The bank’s main office is located in the state of Illinois and this is also the only state in which the bank operates. Since 1946, the Federal Deposit Insurance Corporation has provided insurance to the bank. Along with the National Credit Union Administration (NCUA), the FDIC is the only other governmental agency that provides deposit insurance to American depositary institutions.  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 $50 million ranks it in the 10th percentile of banks in the United States. Table Grove State 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 1 office. As of this writing, the bank employed a total of 11 people.

Details on the Bank’s Asset Composition

As previously indicated, the bank currently has total assets of $50 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $35 million and a deposit base of $44 million. Overall, 57% 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, 92% of the domestic deposits outstanding are insured. Moving on to the components of the bank’s assets we can see that loans provided to customers represent 69% of the banks total assets. Of this amount, loans related to real estate activities comprised 52% of gross loans outstanding. Table Grove State Bank has $0.5 million of outstanding 1-4 family residential loans (mortgages), which in total represents 1% 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 72% of loans outstanding.

Contact Information For Table Grove State Bank

  • Main Office Address: 121 S. Broadway St., Table Grove, IL 61482
  • Website: www.tgsbank.com
  • Total Number of Branches: 1
  • Total Number of International Branches: None
  • Number of Employees: 11
  • FDIC Certificate Number: 16394
  • FDIC Community Bank: Yes
  • FDIC Field Office: Springfield Il
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 411549
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

table grove state bank-financial-metrics-sept-21

The bank had total assets of $50 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 12.4%. Moving to the other side of the balance sheet, we see net loans of $35 million which compares with $33 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 6.1%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 1% of the bank’s loan book. The bank has $0.5 million of residential mortgages outstanding, which compares with $0.7 million in the prior year. This implies a decrease of 24.8% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 6.1% of its total lending and stood at $2 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 72.0% 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 5.4% 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. 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 Table Grove State Bank, they have total customer deposits of $44 million which over the past year has registered an increase of 17.5%. In addition, the bank has a loan to deposit ratio of 79%, which is 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

table grove state bank-performance-metrics-sept-21

Above we have shown a summary of some of the performance metrics for Table Grove State 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 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 declined. In addition, we can also see that the bank is below 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 approximately inline the average U.S. bank, and has declined over the past year. Finally, we could not find Table Grove State 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 18.9% which is above the average U.S. bank.

Concluding Comments on Table Grove State Bank

Overall, we believe Table Grove State Bank deserves a rating of 3.3 out of 5.0, which is a above average rating. There are many factors that go into the calculation of our rating and almost all banks will have both positive and negative contributors. As an example, Table Grove State Bank scores well on its cost of funds, which is above the national average. However when we consider the bank’s net interest margin, the bank does not have a good score mainly because it is below the national average which impacts its rating. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.