Zavala County Bank: Overview of the bank

Zavala County Bank was established in 1907 and is one of a select number of banks in the country that have existed for over a century. Its main office is located in the state of Texas in the city of Crystal City. Texas is home to 401 banks that collectively have $1,112,805 million of assets outstanding. The Federal Deposit Insurance Corporation has provided insurance to the bank since 1935. 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. In addition, the FDIC is the primary federal regulator for the bank and is focused on supervising and examining the bank for operational safety and soundness. 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 $81 million ranks it in the 10th percentile of banks in the United States. Zavala County 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 2 offices. As of this writing, the bank employed a total of 19 people.

Details on the Bank’s Asset Composition

As previously indicated, the bank currently has total assets of $81 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $8 million and a deposit base of $71 million. Overall, 64% 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, 77% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 10% of the bank’s total assets. Loans extended to customers for real estate purposes represented 26% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Zavala County Bank has $0.1 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 41% and 20% of loans outstanding, respectively. Loans to farmland and farms represents 15% of loans outstanding.

Contact Information For Zavala County Bank

  • Main Office Address: 2300 Hwy. 83 N., Crystal City, TX 78839
  • Website:
  • Total Number of Branches: 2
  • Total Number of International Branches: None
  • Number of Employees: 19
  • FDIC Certificate Number: 15105
  • FDIC Community Bank: Yes
  • FDIC Field Office: Austin
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 969956
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

zavala county bank-financial-metrics-sept-21

Zavala County Bank has total assets of $81 million and over the past year its asset base has increased slightly, reporting an increase of 1.1%. In terms of the bank’s lending activities, net loans represented 9.9% of its total assets, and stood at $8 million. The bank’s loan portfolio has increased slightly over the past year, with an increase of 1.1%. Within the loan portfolio, residential mortgages make up 1% of the outstanding loans of the bank, and over the past year have registered a decrease of 32.2%. In addition, the bank provides loans to commercial and industrial businesses, which represents 20.2% 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 15.3% 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 18.6% of the bank’s total lending.

Bank Liquidity and Funding

Liquidity and funding are two important considerations when evaluating a bank. It gives us a sense of how a bank finances its activities and can help both depositors and customers better understand a banks financial positioning. 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 Zavala County Bank, they have total customer deposits of $71 million which over the past year has registered an increase of 2.9%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Zavala County Bank has a loan to deposit ratio of 11% which is significantly 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. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.

Bank Performance and Capital Metrics

zavala county bank-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 Zavala County Bank 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 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 been relatively stable. 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 above the average U.S. bank, and has been relatively stable over the past year. 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. Zavala County Bank’s tier 1 capital ratio has declined over the past year, and is above the average U.S. bank.

Final Thoughts: Zavala County Bank

Our final rating for Zavala County Bank, after assessing the bank on several important metrics, is 3.1 out of 5.0, which is above average. 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, Zavala County 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. 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.