Overview of Zapata National Bank

The Zapata National Bank is a relatively small bank whose main office is based in the state of Texas. 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 1961. The bank first got insured by the Federal Deposit Insurance Corporation in the year 1961 and has remained insured by the independent agency ever since.  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 $98 million ranks it in the 20th percentile of banks in the United States. Zapata National Bank 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. In terms of headcount, the bank currently has 19 employees.

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

Some of the key components of the bank’s balance sheet are total assets of $98 million, total loans extended to customers of $34 million and customer deposits of $86 million. Transactional deposits comprised 39% of the bank’s outstanding deposits. Meanwhile, deposits from domestic customers represented a total of 100% of the deposits outstanding and of this amount, 72% are currently insured. Looking at the asset side of the balance sheet, 36% of the bank’s total asset base consisted of loans to customers (keep in mind that this is on a gross basis). Loans for real estate purposes alone comprised 68% of the outstanding loans. Zapata National Bank has $13 million of outstanding 1-4 family residential loans (mortgages), which in total represents 39% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 14% and 13% of loans outstanding, respectively. Loans to farmland and farms represents 9% of loans outstanding.

Contact Information For Zapata National Bank

  • Main Office Address: 703 Hidalgo Blvd, Zapata, TX 78076
  • Website: https://zapatanationalbank.com
  • Total Number of Branches: 1
  • Total Number of International Branches: None
  • Number of Employees: 19
  • FDIC Certificate Number: 18454
  • FDIC Community Bank: Yes
  • FDIC Field Office: Houston
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 218261
  • Bank Charter Class: N
  • Primary Regulator: OCC

Financial Overview

zapata national bank-financial-metrics-dec-21

Zapata National Bank has total assets of $98 million which compares with $90 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 8.6%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $34 million based on the latest available information. Its net loans outstanding have increased slightly over the past year, with an increase of 1.0%. Residential mortgages comprise 39% of the outstanding loans of the bank. The outstanding balance of residential mortgages has decreased over the past year by 7.0%. In addition, the bank provides loans to commercial and industrial businesses, which represents 13.4% of its total lending and stood at $5 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 9.3% 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 0.6% 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. Oftentimes one of the cheapest forms of funding is customer deposits. Zapata National Bank has total customer deposits outstanding of $86 million. The bank’s deposit base has increased substantially over the past year, growing 10.3%. Furthermore, the bank has a loan to deposit ratio of 40% which is significantly below the national average. Banks in the United States have a loan to deposit ratio of approximately 82%. A lower ratio is better since it means that a bank’s lending activities are more comfortably covered by its deposit base. Effectively all of the bank’s deposit base is funded by domestic sources.

Bank Performance and Capital Metrics

zapata national bank-performance-metrics-dec-21

The above chart provides a brief summary of some of the key performance metrics for Zapata National Bank. Next to these metrics are the equivalent for the average U.S. bank. When it comes to 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. 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 declined. 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 above the national average. Finally, we could not find Zapata National 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 19.2% which is above the average U.S. bank.

Final Thoughts: Zapata National Bank

In conclusion, when we look at all the various factors and data we give Zapata National Bank a 3.6 out of 5.0 rating, which we consider to be 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. 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.