Top 20 - The Independent Community Bankers of America

34 IndependentBanker 06|2007
ICBA Independent Banker publishes its annual
listing of community banking’s leading earners.
By Kelly Pike
D
emand for agriculture loans in Oshkosh,
Neb., is limited. Yet $35 million-asset
Nebraska State Bank, located in a rural town
of 800, has statistically one of the highest
concentrations of agriculture loans in the
country—each year booking around $20 million
in agriculture loans that are
sold into the secondary
Measuring
Performance
Illustration by Tom White
As part of its annual year-end performance ranking of
ICBA members, ICBA Independent Banker pulls Call
Report data from the FDIC to identify the top community bank
return on assets and return on equity ratings for 2006.
In search of the industry’s top performers last year, ICBA Independent
Banker grouped ICBA members by their Subchapter S corporation and
Subchapter C corporation filing status, then further separated banks into
five different asset-size categories:
• Banks with assets of $50 million or less
• Banks with assets of $50 million to $100 million
• Banks with assets of $100 million to $250 million
• Banks with assets of $250 million to $500 million
• Banks with more than $500 million in assets
ICBA congratulates all the community banks that earned their way
onto the 2006 rankings of the community banking industry’s top
performers. See pages 36 through 47 for listings.
All the listed community banks are ICBA members as
of March 31, 2007 and were formed before 2006.
market.
The community bank’s
high loan volume,
through its participation
in the Farm Service
Agency’s preferred lender
program, which allows it
to make loans in areas
ranging from South Dakota
and Oklahoma to Ohio and
California, is also heating up
the bank’s performance.
During 2006, a time when
many community banks saw a
decline in return on assets (ROA)
and return on equity (ROE),
Nebraska State Bank improved upon
its 2005 performance with an ROA of
3.03 percent, up from 2.58 percent. It also
recorded an ROE of 32.30 percent in 2006,
up from 28.87 percent.
06|2007 IndependentBanker 35
“It’s solely tied to the [FSA] guaranteed loan
program,” says Michael L. Jorgensen, the bank’s
president and CEO. “Because of Ag conditions
since 2004, where commodity prices have increased, our customer base is very strong and we’ve
been fortunate to have very few credit problems.”
Nebraska State Bank has seen growing volume
(and returns) since 1993 when the bank decided to
expand its agricultural market. At first the bank tried
selling crop insurance, but it sold just a handful of
policies—and several of those were to relatives,
Jorgensen jokes. So the community bank decided to
try and expand its marketing of guaranteed
agricultural loans into contiguous counties. After
closing $3 million in its first year, the bank
expanded into states across the country, eventually
including its current hotbed, California, where the
bank has a loan production office.
“If we look at local demand, it’s limited. It
would be comparable to other banks our size,” says
Jorgensen. “But we knew we needed to expand,
and we did.”
Even as loan volume slowed a bit in 2006,
improvements in technology have helped Nebraska
State Bank process and analyze loans quicker than in
the past and open or close loan production offices as
demand waxes and wanes. This year, the bank has
grown a little in size and seen shrinking margins, but
still expects to pull in numbers about even with
2005’s performance, Jorgensen says.
Industry Averages
Last year was the sixth straight record-breaking year
of earnings for the banking industry. Industry-wide
earnings totaled $145.7 billion, an increase of $11.8
billion over 2005. Community banks with fewer
than $100 million in assets earned $1.7 billion,
down 10 percent from the $1.9 billion earned in
2005. Community banks between $100 million and
$1 billion in assets fared better, earning $14.55
billion, a 1 percent decrease.
Industry-wide ROA matched the past two year’s
return of 1.28 percent, while ROE continued its
decline from the highs of 2003. Average ROE was
TOP ROA SUBCHAPTER C BANKS
TOP ROE SUBCHAPTER C BANKS
(banks with less than $50 million in assets)
(banks with less than $50 million in assets)
Institution Name
Location
ROA
Institution Name
Location
1
The Philadelphia Trust Co.
Philadelphia, PA
4.53
1
First State Bank
Mobeetie, TX
ROE
25.81
2
Community Development Bank, FSB
Ogema, MN
3.47
2
State Exchange Bank
Lamont, OK
21.57
3
State Bank of Scotia
Scotia, NE
2.21
3
Community Development Bank, FSB
Ogema, MN
20.71
4
Capital Bank of Texas
Carrizo Springs, TX
2.04
4
Farmers State Bank
Stickney, SD
19.33
5
First National Bank
Evant, TX
2.00
5
Farmers & Merchants State Bank
Iroquois, SD
18.07
6
Cheyenne State Bank
Cheyenne, WY
1.94
6
Thunder Bank
Sylvan Grove, KS
17.72
7
Holladay Bank & Trust
Holladay, UT
1.75
7
Community State Bank
Coffeyville, KS
16.48
8
The Monitor Bank
Big Prairie, OH
1.74
8
People’s Bank of Seneca
Seneca, MO
16.41
Thunder Bank
Sylvan Grove, KS
1.74
9
Dutton State Bank
Dutton, MT
15.97
10
Farmers & Merchants State Bank
Iroquois, SD
1.72
10
Farmers and Merchants Bank
Milligan, NE
15.35
11
South Padre Bank, N.A.
South Padre Island, TX 1.71
11
First National Bank in Pawhuska
Pawhuska, OK
15.19
12
The Oakwood State Bank
Oakwood, TX
1.67
12
Cheyenne State Bank
Cheyenne, WY
15.16
13
State Bank of Schaller
Schaller, IA
1.66
13
First National Bank
Evant, TX
15.00
14
The Hershey State Bank
Hershey, NE
1.64
14
The First National Bank of Ekalaka
Ekalaka, MT
14.45
15
Garden Plain State Bank
Wichita, KS
1.62
15
Citizens City and County Bank
Trenton, TN
14.13
15
Bonduel State Bank
Bonduel, WI
1.62
16
First State Bank of Wilton
Wilton, ND
14.09
17
Garfield County Bank
Jordan, MT
1.60
17
Southwest National Bank
Weatherford, OK
13.84
17
Liberty State Bank
Powers Lake, ND
1.60
18
Garden Plain State Bank
Wichita, KS
13.81
19
Commercial Bank
Nelson, NE
1.59
19
Merchants & Farmers Bank of Greene County Eutaw, AL
13.56
20
Citizens City and County Bank
Trenton, TN
1.58
20
Curtis State Bank
Curtis, NE
13.43
8
36 IndependentBanker 06|2007
Growing
Revenue
12.34 percent, down from 12.45 in 2005.
Institutions with fewer than $100 million in assets
saw significant declines, with ROA declining to 0.93
from 1.0 last year, and ROE dropping to 7.1 from
8.0. Those between $100 million and $1 billion in
assets reported an ROA of 1.17 and an ROE of
11.32, compared with 1.24 and 12.09, respectively,
in 2005.
Net interest margins have been a challenge at
many of the smallest community banks, continuing
a steady decline since 2003 to finish the year at
3.18 percent at institutions with fewer than $100
million in assets. Industry-wide margins remained
steadier over the course of the year, finishing at
4.19 percent.
“Banks that have actively and aggressively
managed a difficult interest rate environment are
doing the best,” says Paul Merski, ICBA’s chief
economist and director of federal tax policy.
“That flat yield curve and the [Federal Reserve]
keeping rates on hold make it very challenging
for banks.”
BancIntelligence, an ICBA Preferred
While many comService Provider, assists community
munity banks saw
banks in identifying strengths and
ROE and ROA slide
weaknesses and quantifying potential
a little in 2006,
earnings enhancements through advanced
others managed to
financial ratio and peer analysis.
For more information about
exceed the previous
BancIntelligence visit www.bancintelliyear’s gains. With an
gence.com or contact Kevin Tweddle
eye on results, often
at ktweddle@bancintelligence.com
these banks sought out
or (800) 846-6681.
new markets, focused on a
core niche, or created a rewards-based environment that
boosted employee performance.
“If you look at better performing
banks, they are more diversified and doing things
like loan participations,” says Merski. “And it’s
about business lines. If a bank [was] in the
mortgage lending business more actively than the
commercial lending arena, the bank likely took a
greater hit as mortgage lending took a dramatic
downturn, but commercial lending was still
strong in 2006.”
TOP ROA SUBCHAPTER C BANKS
TOP ROE SUBCHAPTER C BANKS
(banks with $50 million–$100 million in assets)
(banks with $50 million–$100 million in assets)
ROE
Institution Name
Location
ROA
Institution Name
Location
1
Borrego Springs Bank, N.A.
La Mesa, CA
5.62
1
Borrego Springs Bank, N.A.
La Mesa, CA
38.96
2
Bank of Goochland, N.A.
Goochland, VA
2.49
2
Farmers State Bank
Marion, SD
26.81
3
The Farmers Bank
Hardinsburg, KY
2.33
3
Community Bank
Bristow, OK
25.98
4
Farmers State Bank
Marion, SD
2.20
4
First National Bank in Munday
Munday, TX
22.48
5
First State Bank of Hotchkiss
Hotchkiss, CO
2.17
5
Bank of Goochland, N.A.
Goochland, VA
22.13
6
Leitchfield Deposit Bank & Trust Co.
Leitchfield, KY
2.15
6
Bank of Star Valley
Afton, WY
20.66
7
First National Bank in Munday
Munday, TX
2.10
7
Bank of Newington
Newington, GA
20.23
8
Bank of Dooly
Vienna, GA
2.04
8
Colony Bank of Dodge County
Eastman, GA
20.20
9
Citizens National Bank
Teague, TX
1.96
9
Farmers State Bank & Trust Co.
Mount Sterling, IL
19.68
9
The Citizens State Bank of Choteau
Choteau, MT
1.96
10
Green Lake State Bank
Green Lake, WI
19.58
9
Bank of Newington
Newington, GA
1.96
11
Dallas National Bank
Dallas, TX
19.02
12
First National Bank of Estes Park
Estes Park, CO
1.92
12
The Citizens State Bank of Cortez
Cortez, CO
18.46
13
Farmers State Bank
Hillsboro, WI
1.85
13
The Gunnison Bank and Trust Co.
Gunnison, CO
18.44
13
Kentucky National Bank of Pikeville
Pikeville, KY
1.85
14
State Bank of Davis
Davis, IL
18.13
13
Silver Falls Bank
Silverton, OR
1.85
15
Silver Falls Bank
Silverton, OR
18.04
16
Northland National Bank
Kansas City, MO
1.83
16
University Bank
Ann Arbor, MI
17.88
17
Dallas National Bank
Dallas, TX
1.81
17
First National Bank of Estes Park
Estes Park, CO
17.64
18
Community Bank
Bristow, OK
1.79
18
The Morris State Bank
Morris, OK
17.54
18
Bank of Star Valley
Afton, WY
1.79
19
Grandview Bank
Grandview, TX
17.49
20
State Savings Bank
Frankfort, MI
1.78
20
High Plains Bank
Flagler, CO
17.28
06|2007 IndependentBanker 37
Expanding Footprint
Like Nebraska State Bank, Thunder Bank in
Sylvan Grove, Kan., is looking beyond its 300person community to reach broader markets. For
years the institution operated as a small
agriculture bank, but after several mergers and
transactions led to a name change in 2003, the
leadership of Thunder Bank decided to diversify
into mortgages, says Mark Obermueller, president
and CEO of the $36 million-asset Subchapter C
corporation bank. “We had the option of being a
small Ag bank or t aking the big plunge and
looking outside our doors,” he says.
Obermueller’s plunge was actually more of a
gradual wade, beginning with Obermueller and
one teller marketing the bank’s mortgage services
across the state. As the pair found success, the
teller was promoted and Obermueller added 10
more loan officers, including two in Phoenix.
Today, the bank reaches homebuyers in Kansas,
Nebraska and Missouri, among other states, and
has grown from a portfolio dominated by
agriculture to one where Ag loans make up just
30 percent.
Despite a slowing mortgage market, business
continues to thrive, increasing Thunder Bank’s
income and allowing it to invest in training and
expanding the business. In 2006 the bank posted an
ROA of 1.74 percent, up from 1.6 percent in 2005,
and an ROE of 17.72 percent, up from 14.58
percent. And 2007 is shaping up to be another solid
year. “As far as predictions, we’re probably right on
target for a better year,” says Obermueller, whose
bank sells its mortgage loans to the secondary
market. “We’ve benefited from some really strong
interest markets to date.”
A Smorgasbord of Service
Another small community bank boosting big
returns is Stockmen National Bank in Cotulla,
Texas, located 100 miles south of San Antonio
and 85 miles north of Laredo. John Northcut,
president, chairman and CEO of the bank,
describes Stockmen National as “a small rural
continued on page 42
TOP ROA SUBCHAPTER C BANKS
TOP ROE SUBCHAPTER C BANKS
(banks with $100 million–$250 million in assets)
(banks with $100 million–$250 million in assets)
Institution Name
Location
ROA
Institution Name
Location
ROE
1
Capital Community Bank
Provo, UT
2.97
1
Security First National Bank
Hugo, OK
33.28
2
Pioneer Trust Bank, N.A.
Salem, OR
2.73
2
The First National Bank of Weatherford
Weatherford, TX
31.85
3
Centennial Bank
Ogden, UT
2.56
3
Capital Community Bank
Provo, UT
28.46
4
The First National Bank of Weatherford
Weatherford, TX
2.49
4
The Village Bank
Saint George, UT
25.77
5
Security First National Bank
Hugo, OK
2.42
5
The First National Bank of Baird
Baird, TX
25.28
6
Monterey County Bank
Monterey, CA
2.40
6
Mississippi River Bank
Belle Chasse, LA
24.82
7
First Southern Bank
Florence, AL
2.36
7
Centennial Bank
Ogden, UT
24.66
8
State Bank of Cochran
Cochran, GA
2.23
8
First Southern Bank
Florence, AL
24.64
8
People’s Bank and Trust Co.
Byrdstown, TN
2.16
9
FirstBank of Silverthorne
Silverthorne, CO
23.84
10
Mississippi River Bank
Belle Chasse, LA
2.11
10
Monterey County Bank
Monterey, CA
23.61
11
Cumberland Security Bank
Somerset, KY
2.02
11
Heartland National Bank
Sebring, FL
22.28
12
The First National Bank of Baird
Baird, TX
1.98
12
FirstBank of Breckenridge
Breckenridge, CO
22.19
13
Small Town Bank
Wedowee, AL
1.96
13
People's Bank and Trust Co.
Byrdstown, TN
21.64
14
First Heritage Bank
Snohomish, WA
1.94
14
Western Community Bank
Orem, UT
20.75
15
United National Bank
Cairo, GA
1.89
15
Pioneer Trust Bank, N.A.
Salem, OR
20.58
16
New Millennium Bank
New Brunswick, NJ
1.88
16
Community National Bank at Bartow
Bartow, FL
19.80
17
Virginia Bank & Trust Co.
Danville, VA
1.87
17
Cumberland Security Bank
Somerset, KY
19.74
18
Riverside Bank
Poughkeepsie, NY
1.86
18
Riverside Bank
Poughkeepsie, NY
19.69
19
Town Center Bank
Portland, OR
1.85
19
Community Security Bank
New Prague, MN
19.39
20
First New Mexico Bank
Deming, NM
1.82
20
First Bank of Jacksonville
Jacksonville, FL
19.21
38 IndependentBanker 06|2007
TOP ROA SUBCHAPTER C BANKS
TOP ROE SUBCHAPTER C BANKS
(banks with $250 million–$500 million in assets)
(banks with $250 million–$500 million in assets)
Institution Name
Location
ROA
Institution Name
Location
1
1st Financial Bank USA
Dakota Dunes, SD
2.90
1
Independent Bankers’ Bank of Florida
Lake Mary, FL
32.02
2
Far West Bank
Provo, UT
2.80
2
FirstBank of Arvada
Arvada, CO
26.75
3
Fidelity Bank of Florida, N.A.
Merritt Island, FL
2.67
3
FirstBank of Denver
Denver, CO
25.50
4
Independent Bankers’ Bank of Florida
Lake Mary, FL
2.46
4
FirstBank North
Arvada, CO
25.34
5
The Community Bank
Loganville, GA
2.31
5
FirstBank of Lakewood
Lakewood, CO
25.25
6
The Fort Sill National Bank
Fort Sill, OK
2.30
6
FirstBank of Arapahoe County
Centennial, CO
24.58
7
Citizens Bank
Carthage, TN
2.29
7
FirstBank of Tech Center
Greenwood Village, CO
24.49
8
The First National Bank of Wyoming
Wyoming, DE
2.23
8
FirstBank of Avon
Avon, CO
23.90
9
National Bank of California
Los Angeles, CA
2.21
9
The National Bank of Fredericksburg
Fredericksburg, VA
23.83
10
Enterprise Bank of South Carolina
Ehrhardt, SC
2.15
10
The Heritage Bank
Hinesville, GA
23.73
11
Community Bank
Raceland, LA
2.06
11
FirstBank of Wheat Ridge
Wheat Ridge, CO
23.61
12
First Utah Bank
Salt Lake City, UT
1.97
12
First Utah Bank
Salt Lake City, UT
23.47
13
Colorado Community Bank
Yuma, CO
1.96
13
FirstBank of Boulder
Boulder, CO
23.29
14
Vision Bank Gulf
Shores, AL
1.95
14
FirstBank of Aurora
Aurora, CO
23.22
15
The National Bank of Fredericksburg
Fredericksburg, VA
1.87
15
FirstBank of Cherry Creek
Denver, CO
22.91
16
Pacific State Bank
Stockton, CA
1.86
16
Highlands Independent Bank
Sebring, FL
22.87
16
Independence Bank
Havre, MT
1.86
17
The Community Bank
Loganville, GA
22.27
16
Cornerstone Community Bank
Chattanooga, TN
1.86
18
Primesouth Bank
Blackshear, GA
22.08
ROE
19
Citizens Bank of Blount County
Maryville, TN
1.84
19
Cornerstone Community Bank
Chattanooga, TN
21.95
20
Honesdale National Bank
Honesdale, PA
1.81
20
Liberty Bank & Trust Co.
New Orleans, LA
21.94
20
Pacific National Bank
Miami, FL
1.81
TOP ROA SUBCHAPTER C BANKS
TOP ROE SUBCHAPTER C BANKS
(banks with more than $500 million in assets)
(banks with more than $500 million in assets)
Institution Name
Location
ROA
Institution Name
Location
1
Armed Forces Bank, N.A.
Fort Leavenworth, KS
6.68
1
Armed Forces Bank, N.A.
Fort Leavenworth, KS 58.55
ROE
2
First National Bank
Pierre, SD
3.06
2
First Commercial Bank of Florida
Orlando, FL
27.77
3
Florida Community Bank
Immokalee, FL
2.42
3
FirstBank of South Jeffco
Littleton, CO
27.24
4
First Regional Bank
Century City, CA
2.41
4
The Commerce Bank of Washington, N.A. Seattle, WA
27.07
5
Frontier Bank
Everett, WA
2.34
5
German American Bancorp
Jasper, IN
26.11
6
Security State Bank & Trust
Fredericksburg, TX
2.29
6
Florida Community Bank
Immokalee, FL
25.10
7
First United Security Bank
Thomasville, AL
2.27
7
Community Resource Bank
Orangeburg, SC
23.52
8
United Security Bank
Fresno, CA
2.19
8
Frontier Bank
Everett, WA
23.45
8
Bank of American Fork
American Fork, UT
2.19
9
Century Bank, FSB
Sarasota, FL
22.93
10
German American Bancorp
Jasper, IN
2.05
10
First Regional Bank
Century City, CA
22.58
11
Bank of the Cascades
Bend, OR
2.02
11
Idaho Independent Bank
Boise, ID
21.41
12
Idaho Independent Bank
Boise, ID
2.00
12
FirstBank of Colorado
Lakewood, CO
21.38
13
Preferred Bank
Los Angeles, CA
1.98
13
First American Bank & Trust
Vacherie, LA
20.93
14
Columbia River Bank
The Dalles, OR
1.96
14
Columbia River Bank
The Dalles, OR
20.48
15
Lake Forest Bank & Trust Co.
Lake Forest, IL
1.95
15
Center Bank
Los Angeles, CA
20.31
16
The First National Bank of Fort Smith
Fort Smith, AR
1.92
16
Bank of the Sierra
Porterville, CA
20.10
17
Bank of the Sierra
Porterville, CA
1.91
17
West Bank West
Des Moines, IA
19.89
18
First National Bank Alaska
Anchorage, AK
1.87
18
Orion Bank
Naples, FL
19.53
18
First Commercial Bank of Florida
Orlando, FL
1.87
19
United Security Bank
Fresno, CA
19.49
20
Citizens & Farmers Bank
West Point, VA
1.85
20
Tompkins Trust Co.
Ithaca, NY
19.47
21
1st Centennial Bank
Redlands, CA
1.81
40 IndependentBanker 06|2007
continued from page 38
TOP ROA SUBCHAPTER S BANKS
(banks with less than $50 million in assets)
Institution Name
Location
ROA
1
Richland State Bank
Bruce, SD
4.15
2
Stockmens National Bank in Cotulla
Cotulla, TX
3.43
3
PrinsBank
Prinsburg, MN
3.31
4
Moorhead State Bank
Moorhead, IA
3.28
5
Commercial Capital Bank
Delhi, LA
3.16
6
Randall State Bank
Randall, MN
3.07
7
Nebraska State Bank
Oshkosh, NE
3.03
8
Elysian Bank
Elysian, MN
2.95
9
First National Bank
Trinity, TX
2.94
10
Drayton State Bank
Drayton, ND
2.91
11
The First National Bank of Fairfax
Fairfax, MN
2.88
12
Home State Bank
Royal, IA
2.75
13
Eitzen State Bank
Eitzen, MN
2.71
14
Grant County State Bank
Carson, ND
2.64
15
First State Bank of Beecher City
Beecher City, IL
2.60
15
Farmers and Merchants Bank of Hill City Hill City, KS
2.60
17
First Security Bank of Roundup
Roundup, MT
2.56
18
State Bank of Marietta
Marietta, MN
2.55
19
The First State Bank of Healy
Healy, KS
2.54
20
Bank of Commerce
Choteau, OK
2.53
TOP ROE SUBCHAPTER S BANKS
(banks with less than $50 million in assets)
Institution Name
Location
ROE
1
First National Bank
Trinity, TX
32.53
2
Nebraska State Bank
Oshkosh, NE
32.30
3
Stockmens National Bank in Cotulla
Cotulla, TX
31.12
4
Randall State Bank
Randall, MN
30.13
5
Lusk State Bank
Lusk, WY
29.62
6
The First Bank
Roxton, TX
29.13
7
State Bank of Marietta
Marietta, MN
28.99
8
Elysian Bank
Elysian, MN
28.68
9
Eitzen State Bank
Eitzen, MN
28.61
10
Peoples State Bank
Summit, SD
28.02
11
Commercial Capital Bank
Delhi, LA
27.98
12
First Valley Bank
Seeley Lake, MT
27.85
13
Richland State Bank
Bruce, SD
27.40
14
Bank of Commerce
Chouteau, OK
27.28
15
The State Bank of Townsend
Townsend, MT
26.64
16
Drayton State Bank
Drayton, ND
26.41
17
Peoples State Bank
Westhope, ND
26.14
18
PrinsBank
Prinsburg, MN
25.39
19
Farmers State Bank of Underwood
Underwood, MN
25.38
20
Town & Country Bank Midwest
La Belle, MO
25.13
42 IndependentBanker 06|2007
country bank that does a little bit of everything
the town needs.”
While that means providing consumer,
commercial and agriculture services, it also means
avoiding side products like insurance and brokerage
to eschew ruffling the feathers of customers offering
those same products. Instead, by careful planning,
controlling operating costs and managing its interest
rate, the bank saw an ROA of 3.43 percent, up
from 2.92 percent in 2005, and an ROE of 31.12,
up from 24.48.
“We look at ROA every month to see if we’re on
schedule [with the bank’s budget projections] and
why,” says Northcut. “Last year the main thing that
put us above the budget schedule was the favorable
interest rate margin. Plus, non-interest income was
very good—not abnormal, but good.”
This year will be a different story when it comes to
the interest rate environment, Northcut says. Unlike
2006, where a drought hurt many of the bank’s
cattle ranchers, the weather so far has been
favorable. “We’re not expecting a lot of increase, but
we think we can do a little bit better, maybe 5
percent or 6 percent better, in terms of income.”
A Fair Share
Keeping an eye on the bottom line is instrumental,
according to all the high-performing community
banks interviewed. And one of the best ways to
ensure that all employees follow the numbers is to
give them a vested interest in the outcome.
In the case of United Security Bank, a $674
million-asset commercial community bank in
Fresno, Calif., that means that every employee is a
part-owner in the bank, with 8 percent to 10 percent
of a salary match placed into the ESOP each year
(in addition to a separate 401(k) plan). Employees
are also invited to sign a personal contract with bank
President, Chairman and CEO Dennis Woods
guaranteeing a pre-determined bonus if specific
profitability, loan and deposit goals are met.
“We can’t control interest rates or the
competition, but we think we can control
productivity,” Woods says. “We want to outwork
the competition.”
United Security Bank also boasts an efficiency
ratio in the 40s, partially the result of the mixed
blessing of Fresno’s soft economy. While business
customers are harder to come by, quality employees
come at a fair price. “There is no fluff in our
organization,” says Woods. “I answer my own phone.
My business card has a direct number and
cellphone number. You can call me 24 hours a day.”
The technique appears to pay off. The subchapter
C bank’s 2006 ROA of 2.19 percent exceeded its
2005 ROA of 1.96 percent in addition to posting a
19.49 percent ROE.
With such high-level service, United Security
Bank doesn’t compete as a commodity that matches
rates. It also doesn’t advertise, relying instead on
personally courting commercial customers. In 2007
and beyond, Woods hopes to mine existing
customers for more business by adding wealth
management and cash management services by
rolling out remote deposit and other new products.
“This year we think we have all the tools necessary to
offer new products. We’ve invested in ourselves,” says
Woods, whose bank upgraded its entire platform.
Prior Lake State Bank employees also have more
than a passing interest in the community bank’s
performance. Their salary bonus is based on the
bank’s annual ROA—the higher the ROA, the
higher the bonus. “We don’t have a lot of
stockholders, but we have a lot of stakeholders in
our employees,” says Bob Barsness, chairman,
president and CEO of the Prior Lake, Minn.-based
bank. “Our philosophy is to make sure our
stakeholders fare as well as our stockholders. It lends
itself to an ‘everyone on the bandwagon’
mentality that helps us do our best.”
The collective effort led the $163 million-asset,
Subchapter S corporation bank to an ROA of 3.54
percent, up from 2.83 percent in 2005, and an ROE
of 29.18 percent. To ensure that employees don’t
lose sight of long-term goals, Prior Lake State Bank
has for the past 30 years offered an incentive
program. Every four to five years employees who
meet goals for referrals, community service activities
and other benchmarks are awarded with a group
trip. Last year, the reward was a four-day trip to an
all-inclusive resort in Cancun, Mexico.
continued on page 47
TOP ROA SUBCHAPTER S BANKS
TOP ROE SUBCHAPTER S BANKS
(banks with $50 million–$100 million in assets)
(banks with $50 million–$100 million in assets)
Institution Name
Location
ROA
Institution Name
Location
ROE
1
Latimer State Bank
Wilburton, OK
3.22
1
Bank of Dade
Trenton, GA
47.82
2
Grand Timber Bank
McGregor, MN
3.18
2
First National Bank
Stigler, OK
46.18
3
State Bank of Wheaton
Wheaton, MN
3.17
3
Wilburton State Bank
Wilburton, OK
42.72
4
Alamerica Bank
Birmingham, AL
3.06
4
First State Bank
Graham, TX
37.30
5
Preston National Bank
Dallas, TX
3.05
5
The First Security Bank
Beaver, OK
36.92
6
Friona State Bank, N.A.
Friona, TX
3.03
6
Grand Timber Bank
McGregor, MN
35.68
7
Bank of Dade
Trenton, GA
3.02
7
First Bank
Wadley, AL
35.37
8
First National Bank of Alvin
Alvin, TX
2.99
8
State Bank of New Richland
New Richland, MN
34.34
9
Security Bank of Southwest Missouri
Cassville, MO
2.94
9
The National Bank of Andrews
Andrews, TX
33.12
10
The National Bank of Andrews
Andrews, TX
2.92
10
Security Bank of Southwest
Missouri Cassville, MO 33.06
11
Ruby Valley National Bank
Twin Bridges, MT
2.91
11
Bank of St. Croix, Inc.
Christiansted, VI
33.00
12
Corydon State Bank
Corydon, IA
2.86
12
Bank Northwest
Hamilton, MO
32.89
13
Security State Bank of Aitkin
Aitkin, MN
2.84
13
Community Bank
Longview, TX
32.69
14
Peoples State Bank
De Smet, SD
2.76
14
First Kansas Bank & Trust Co.
Gardner, KS
32.32
15
Lakes State Bank
Pequot Lakes, MN
2.73
15
Fort Davis State Bank
Fort Davis, TX
31.74
15
State Bank of Niantic
Niantic, IL
2.73
16
Covenant Bank
Leeds, AL
31.20
15
First Bank
Wadley, AL
2.73
17
Security State Bank of Howard Lake
Howard Lake, MN
29.90
18
First National Bank
Stigler, OK
2.72
18
Central Bank & Trust
Lander, WY
29.19
18
First State Bank
Graham, TX
2.72
19
Grand Bank of Texas
Grand Prairie, TX
28.85
20
Peoples Bank & Trust Co.
Owenton, KY
2.70
20
Bank Iowa
Clarinda, IA
28.69
44 IndependentBanker 06|2007
TOP ROA SUBCHAPTER S BANKS
TOP ROE SUBCHAPTER S BANKS
(banks with $100 million–$250 million in assets)
(banks with $100 million–$250 million in assets)
Institution Name
Location
ROA
Institution Name
Location
1
The First National Bank of Grant Park
Grant Park, IL
4.54
1
The First National Bank of Grant Park
Grant Park, IL
ROE
53.26
2
Prior Lake State Bank
Prior Lake, MN
3.54
2
First National Bank of Picayune
Picayune, MS
47.61
3
Commerce Bank
Geneva, MN
3.48
3
United Security Bank
Sparta, GA
37.78
4
America West Bank
Layton, UT
3.47
4
Miami Valley Bank
Lakeview, OH
37.71
5
Miami Valley Bank
Lakeview, OH
3.38
5
America West Bank
Layton, UT
37.55
6
First National Bank of Picayune
Picayune, MS
3.37
6
North Valley Bank
Denver, CO
36.39
7
Bank of the Southwest
Roswell, NM
3.35
7
Bank of the Southwest
Roswell, NM
36.35
8
Bank of the Rio Grande, N.A.
Las Cruces, NM
3.14
8
Valley Bank of Commerce
Roswell, NM
34.55
9
First National Bank Northwest Florida
Panama City, FL
3.03
9
Bank of the Rio Grande, N.A.
Las Cruces, NM
33.25
9
North Valley Bank
Denver, CO
3.03
10
Citizens National Bank
Wisner, NE
32.95
11
First National Bank USA
Boutte, LA
2.97
11
Central National Bank of Poteau
Poteau, OK
32.93
12
Western Bank
Artesia, NM
2.96
12
First Bank
Burkburnett, TX
32.47
13
Pearland State Bank
Pearland, TX
2.91
13
Live Oak State Bank
Dallas, TX
32.36
13
Live Oak State Bank
Dallas, TX
2.91
14
Western Bank
Artesia, NM
32.08
15
Clackamas County Bank
Sandy, OR
2.83
15
Farmers and Merchants State Bank of Pierz
Pierz, MN
31.81
16
FirsTier Bank
Kimball, NE
2.82
16
Centinel Bank of Taos
Taos, NM
31.52
16
The Bank
Oberlin, KS
2.82
17
Security State Bank
Odessa, TX
31.49
18
Farmers Bank
Ault, CO
2.80
18
Peak National Bank
Conifer, CO
31.18
19
First Fidelity Bank
Burke, SD
2.79
19
St. Martin Bank & Trust Company
St. Martinville, LA
31.14
19
Citizens National Bank
Wisner, NE
2.79
20
FirstCity Bank
Stockbridge, GA
31.00
TOP ROA SUBCHAPTER S BANKS
TOP ROE SUBCHAPTER S BANKS
(banks with $250 million–$500 million in assets)
(banks with $250 million–$500 million in assets)
Institution Name
Location
ROA
Institution Name
Location
Yellowstone Bank
Billings, MT
3.73
1
Sterling Bank
West Palm Beach, FL 37.11
2
TransCapital Bank
Hallandale Beach, FL 3.33
2
American Bank
Bozeman, MT
35.82
3
Ocean Bank, F.S.B.
Warwick, RI
3.24
3
Citizens Bank of Las Cruces
Las Cruces, NM
35.59
4
Stockmans Bank
Elk Grove, CA
3.15
4
The First National Bank
Artesia, NM
35.06
5
Sterling Bank
West Palm Beach, FL 3.09
5
The Citizens Bank
Farmington, NM
31.79
6
American Bank
Bozeman, MT
3.08
6
Quail Creek Bank, N.A.
Oklahoma City, OK
30.13
7
Pinnacle Bank
Elberton, GA
2.95
7
BankFIRST
Winter Park, FL
29.76
8
Alliance Bank
New Ulm, MN
2.84
8
American Bank of the North
Nashwauk, MN
28.91
9
Western Commerce Bank
Carlsbad, NM
2.78
9
Platinum Bank
Brandon, FL
28.84
28.65
1
ROE
10
Security State Bank
Centralia, WA
2.67
10
The Bank, N.A.
McAlester, OK
11
Union National Bank
Elgin, IL
2.64
11
TransCapital Bank
Hallandale Beach, FL 28.60
12
Citizens Bank of Las Cruces
Las Cruces, NM
2.56
12
First Western Bank Wall
Wall, SD
27.96
13
Quail Creek Bank, N.A.
Oklahoma City, OK
2.54
13
Magnolia State Bank
Eastman, GA
27.86
14
Plains Commerce Bank
Aberdeen, SD
2.49
14
First Cherokee State Bank
Woodstock, GA
27.62
15
Bay Bank & Trust Co.
Panama City, FL
2.47
15
Covington County Bank
Andalusia, AL
27.54
16
First Western Bank Wall
Wall, SD
2.46
16
First National Bank of Gillette
Gillette, WY
27.37
17
West Texas National Bank
Midland, TX
2.42
17
The First National Bank of Durango
Durango, CO
27.10
18
Citizens National Bank of Texas
Waxahachie, TX
2.41
18
BankSouth
Greensboro, GA
26.79
18
Covington County Bank
Andalusia, AL
2.41
19
First City Bank of Florida
Fort Walton Beach, FL 26.55
20
The First National Bank
Artesia, NM
2.40
20
Citizens National Bank of Texas
Waxahachie, TX
46 IndependentBanker 06|2007
25.88
TOP ROA SUBCHAPTER S BANKS
TOP ROE SUBCHAPTER S BANKS
(banks with more than $500 million in assets)
(banks with more than $500 million in assets)
Institution Name
Location
ROA
Institution Name
Location
1
Stearns Bank, N.A.
Saint Cloud, MN
4.35
1
Gulf Coast Bank and Trust Co.
New Orleans, LA
46.23
2
Woodforest National Bank
Houston, TX
3.50
2
Bank of the West
El Paso, TX
28.90
3
Bank of Washington
Washington, MO
2.84
3
Woodforest National Bank
Houston, TX
42.07
4
Gulf Coast Bank and Trust Co.
New Orleans, LA
2.48
4
Stearns Bank N.A.
Saint Cloud, MN
33.05
5
Citizens Bank
Elizabethton, TN
2.42
5
First National Bank Texas
Killeen, TX
28.87
6
ANB Financial N.A.
Bentonville, AR
2.40
6
First Financial Bank
El Dorado, AR
27.99
7
Bank of the West
El Paso, TX
2.35
7
ANB Financial N. A.
Bentonville, AR
27.96
8
First Financial Bank
El Dorado, AR
2.31
8
Charter Bank
Albuquerque, NM
27.81
9
First National Bank of Santa Fe
Santa Fe, NM
2.28
9
First National Bank of Santa Fe
Santa Fe, NM
26.95
United Bank of Iowa
Ida Grove, IA
2.16
10
American Bank, N.A.
Corpus Christi, TX
26.91
10
ROE
continued from page 44
“We’re always looking for new opportunities to
provide better technical service and make sure we’re
competitive with larger institutions,” says Barsness, whose
bank has instituted remote capture and other technologies over the past several months. “We encourage our
employees to generate relationships that bring income.
Sharing the wealth is the best way to do that.” ib
Kelly Pike is ICBA’s assistant director of publications.
Reach her at kelly.pike@icba.org.
06|2007 IndependentBanker 47