Introduction to Vast Bank
The Vast Bank is a mid-sized bank whose main office is based in the state of Oklahoma. The bank is primarily engaged in providing commercial & industrial loans to its customers, but also provides 1-4 family residential loans (mortgages). The bank was founded in the year 1982. Since 1982, 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 depository institutions. 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 $795 million ranks it in the 70th percentile of banks in the United States. Vast 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 5 offices. Finally, the bank currently has a total employee base of 106 people.
Overview of the Bank’s Assets and Liabilities
Some of the key components of the bank’s balance sheet are total assets of $795 million, total loans extended to customers of $556 million and customer deposits of $670 million. Overall, 44% 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, 58% of the domestic deposits outstanding are insured. Outstanding loans to the bank’s customers makes up 71% of the bank’s assets. Within this, real estate loans represented 60% of the total and 100% of real estate loans were domestic. Vast Bank has $61 million of outstanding 1-4 family residential loans (mortgages), which in total represents 11% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 5% and 36% of loans outstanding, respectively.
Contact Information For Vast Bank
- Main Office Address: 110 N. Elgin Ave., Tulsa, OK 74120
- Website: http://www.vast.bank
- Total Number of Branches: 5
- Total Number of International Branches: None
- Number of Employees: 106
- FDIC Certificate Number: 23737
- FDIC Community Bank: Yes
- FDIC Field Office: Oklahoma City
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 347956
- Bank Charter Class: N
- Primary Regulator: OCC
Vast Bank has total assets of $795 million which compares with $810 million in the prior year. This implies that over the past year, the bank’s asset base has shown a decrease of 1.8%. Moving to the other side of the balance sheet, we see net loans of $556 million which compares with $566 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported a decrease of 1.8%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 11% of the bank’s loan book. The bank has $61 million of residential mortgages outstanding, which compares with $89 million in the prior year. This implies a decrease of 31.9% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 35.8% of its total lending and stood at $202 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 0.6% 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 0.0% 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. 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. Vast Bank has total customer deposits of $670 million. Looking over the past year, its deposit base has decreased slightly with a growth rate of 0.8%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Vast Bank has a loan to deposit ratio of 83% which is above 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
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 Vast 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 improved 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. Vast Bank’s tier 1 capital ratio has improved over the past year, and is below the average U.S. bank.
Concluding Comments on Vast Bank
After factoring in all the relevant information and data, our final rating for Vast Bank is 2.6 out of 5.0, which is average. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its return on assets is a downward force on its rating. On this metric, the bank is below the national 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.