Waycross Bank and Trust: Overview of the bank

The Waycross Bank and Trust is a relatively small bank whose main office is based in the state of Georgia. 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 1988. The Federal Deposit Insurance Corporation has provided insurance to the bank since 1988. 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. 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 $228 million ranks it in the 40th percentile of banks in the United States. Waycross Bank and Trust is primarily a domestic bank and does not at the current time have operations outside of the United States. Domestically, the bank currently has 1 office. As of this writing, the bank employed a total of 21 people.

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

As previously indicated, the bank currently has total assets of $228 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $96 million and a deposit base of $203 million. Domestic deposits currently represent (in terms of total size), 89% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 58% are insured based on the latest available information. Loans extended to customers of the bank currently comprise 43% of the bank’s total assets. Loans extended to customers for real estate purposes represented 84% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Waycross Bank and Trust has $17 million of outstanding 1-4 family residential loans (mortgages), which in total represents 17% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 1% and 14% of loans outstanding, respectively. Loans to farmland and farms represents 8% of loans outstanding.

Contact Information For Waycross Bank and Trust

  • Main Office Address: 501 Tebeau St, Waycross, GA 31501
  • Website: https://www.wbt.bank
  • Total Number of Branches: 1
  • Total Number of International Branches: None
  • Number of Employees: 21
  • FDIC Certificate Number: 27254
  • FDIC Community Bank: Yes
  • FDIC Field Office: Albany Ga
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 1191352
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

waycross bank and trust-financial-metrics-sept-21

Waycross Bank and Trust has total assets of $228 million which compares with $220 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 3.6%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $96 million based on the latest available information. Its net loans outstanding have increased substantially over the past year, with an increase of 20.1%. Residential mortgages comprise 17% of the outstanding loans of the bank. The outstanding balance of residential mortgages has decreased over the past year by 4.7%. In addition, the bank provides loans to commercial and industrial businesses, which represents 14.3% of its total lending and stood at $14 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 8.1% 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 0.2% 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. Oftentimes one of the cheapest forms of funding is customer deposits. Waycross Bank and Trust has total customer deposits outstanding of $203 million. The bank’s deposit base has increased over the past year, growing 3.8%. In addition, the bank has a loan to deposit ratio of 47%, 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

waycross bank and trust-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for Waycross Bank and Trust. Next to these metrics are the equivalent for the average U.S. bank. Starting with its return on assets, over the past year it has improved. 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. Moving on to 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, Waycross Bank and Trust’s Tier 1 capital ratio has declined over the past year. On this metric the bank is above the national average.

Final Thoughts: Waycross Bank and Trust

After factoring in all the relevant information and data, our final rating for Waycross Bank and Trust is 3.8 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.