24 IndependentBanker 06|2006 - The Independent Community

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24 IndependentBanker 06|2006
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— ICBA Applauds its Top Community Banks —
By Kelly Pike
entral Bank of Poteau had a very good 2005.
An aggressive approach to landing new business
helped the $161 million-asset bank’s loan growth
reach an all-time high of $103 million—a 12
percent improvement over the previous year. The
bank, the number one Farm Service Agency
guaranteed lender in Oklahoma, pulled in
$8.7 million in interest income, plus loan
processing and origination fees.
But the biggest story at Central Bank of Poteau,
located in a rural community of 9,000, was the
overdraft privilege program, says Chris Fenton, the
bank’s president. The overdraft program helped
increase fee income to $1.4 million—nearly three
times the median among the top 20 Subchapter S
corporation banks between $100 million and $250
million in assets.
“Competition has driven us to hold off on fees as
best we could, but several customers had requested
[overdraft protection],” says Fenton. “It has added
dramatically to our fee income.” The bank ranked
14th in return on equity (ROE) among its ICBA
member peers with a return of 30.28 percent.
Last year was the fifth straight record-breaking
year of earnings for the banking industry. Industrywide earnings totaled $134.2 billion, an increase of
$11.8 billion. Banks with fewer than $100 million in
assets earned $1.9 billion, down 8 percent from
$2.07 billion in 2004. Banks between $100 million
and $1 billion in assets fared better, earning $14.7
billion, an increase of 8 percent from $13.6 billion
during the same period.
Industrywide return on assets (ROA) matched last
year’s return of 1.28 percent and ROE continued to
decline from the record highs of 2003, down to
13.28 percent in 2004 and down again to 12.46
percent in 2005. Institutions with fewer than $100
million in assets performed fairly well, with ROA
declining slightly to 1.0 percent from 1.01 percent
and ROE down to 8.09 percent from 8.45 percent.
Those between $100 million and $1 billion in assets
reported an ROA of 1.24 and an ROE of 12.09,
compared to 1.19 and 11.75, respectively.
Flowing Streams of Revenue
MEASURING
PERFORMANCE
As part of its annual year-end performance ranking of ICBA
members, Independent Banker pulled call report data from
the FDIC to identify the top community bank ROA and ROE
ratings for 2005.
In search of the industry’s top performers last year, ICBA
members were grouped by their Subchapter S and
Subchapter C filing status, then further separated into five
different asset-size categories:
• Banks with assets of $50 million or less;
• Banks with assets between $50 million to $100
million;
• Banks with assets between $100 million to $250
million;
• Banks with assets between $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 rankings of the community banking
industry’s top performers from 2005’s final call report data.
See pages 26 through 34 for listings.
Community banks listed are ICBA members as of March
31, 2006. Listed banks were formed before 2005.
With interest rate margins shrinking, banks such as
Central Bank of Poteau, that have looked for new
sources of fee income have often found places
among 2005’s top performing ICBA members, says
Paul Merski, ICBA’s chief economist and director of
federal tax policy. “The banks that are successful are
overcoming a flat yield curve and making money
outside of interest income,” says Merski. “Most banks
that are top performers have enhanced income.”
National Bank of Kansas City in Overland Park,
Kan., has been a familiar name on Independent
Banker’s best performing bank’s lists since debuting
in the top spot among Subchapter S banks with $50
to $100 million in assets in 2001 (then under the
name Horizon National Bank). Often National
Bank of Kansas City reports an ROE of more than
70 percent. This year is no exception as the now
$750 million-asset bank continues to hold a top spot
in the rankings, now in the category of Subchapter
S banks with more than $500 million in assets. Its
current ranking is largely due to the sale of
eSmartloan, an online home equity originator for
nonconforming loans, to Capital One for $155
million. The bank reported an ROA of 11.52
percent and an ROE of 72.06 percent.
eSmartloan, which National Bank of Kansas City
formed in 2001, originated more than 12,000 loans
representing more than $1 billion in volume in 2004.
Nevertheless, the bank felt it was time to move on.
06|2006 IndependentBanker 25
— Top Bank Earners —
“We started eSmartloan from scratch,” says Steve
Matthews, National Bank of Kansas City’s president
and CEO. “It was built to a size that would be
attractive to an outside purchaser so we decided to
take our profits.”
The $85 million in capital from the sale of
eSmartloan funded the purchase of branch banks in
Phoenix, which pending regulatory approval will
operate under a different bank name. The bank’s
Arizona branches will be in addition to its existing
retail and Internet mortgage operations. The bank has
aligned itself with LendingTree.com, which has loan
production offices in Springfield, Mo.; Denver;
Topeka, Kan.; and Tempe, Ariz., and operates the
mortgage company National Bank Mortgage Division
in Phoenix.
With nothing to sell next year and $85 million
worth of capital, Matthews isn’t sure if he’ll earn 70
percent ROE again in 2006, but he’s willing to give it
a try and is starting a mortgage operation for fractional
ownership properties and expanding the bank. “The
name of the game for us since we have all this capital
is even if we don’t make any money from here on out,
we can still be a $2 billion bank. We’ve got a lot of
growing to do.”
Profitable Niches
National Bank of Kansas City isn’t the only bank
whose success was buoyed by cashing out of a longterm investment. University Bank in Ann Arbor,
Mich., reaped the benefits of its innovative Islamic
banking division, selling off 20 percent of the
subsidiary to investors for $3 million. The sale
generated $1 million in profit, an ROA of 4.17
percent and an ROE of 65.34 percent. The bank
ranks number one among Subchapter C ICBA
members with $50 million to $100 million in assets.
The profit from the sale was a long time coming,
says Steve Ranzini, chairman and president of the
bank. He noted the division, formed three and a
half years ago, was the focus of significant
investment and growth. In addition to mortgage
financing, the bank also worked to offer FDICinsured deposit products and equity mutual funds.
The bank also recently signed a deal with Freddie
Mac for $100 million in secondary market
residential home financings for Islamic transactions.
“This is the first evidence for shareholders that
this is a profitable business,” says Ranzini. “An
outside group has put a valuation on the corporation
at a premium of $5 million over book value.”
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
ROE
1
The Philadelphia Trust Co.
Philadelphia, PA
5.27
1
The First Bank of Haskell
Haskell, OK
22.51
2
The First National Bank of Aspermont
Aspermont, TX
2.37
2
First Bank of White
White, SD
22.50
3
First Bank of White
White, SD
2.16
3
Farmers State Bank
Stickney, SD
18.01
4
Holladay Bank & Trust
Holladay, UT
2.05
4
Citizens State Bank of Kelliher
Kelliher, MN
17.74
5
The First Bank of Haskell
Haskell, OK
1.94
5
First State Bank
Mobeetie, TX
17.64
6
Hustisford State Bank
Hustisford, WI
1.91
6
The First National Bank of Volga
Volga, SD
17.04
6
Cheyenne State Bank
Cheyenne, WY
1.91
7
Howard State Bank
Howard, KS
16.65
8
First Bank of Lincoln
Lincoln, MT
1.82
7
Commercial Capital Bank
Delhi, LA
16.65
9
State Bank of Schaller
Schaller, IA
1.80
9
The Bank of Macks Creek
Macks Creek, MO
16.56
10
Commercial Capital Bank
Delhi, LA
1.63
10
Western Bank of Chinook, N.A.
Chinook, MT
16.39
11
Bank of Benoit
Benoit, MS
1.62
11
Community State Bank
Coffeyville, KS
16.24
12
The First National Bank of Volga
Volga, SD
1.61
12
First Independent Bank of Wood Lake
Wood Lake, MN
16.20
13
Thunder Bank
Sylvan Grove, KS
1.60
13
Bank of Evergreen
Evergreen, AL
15.60
14
First Independent Bank of Wood Lake
Wood Lake, MN
1.59
14
Farmers and Merchants Bank
Milligan, NE
15.59
15
Liberty Bank Inc.
Salt Lake City, UT
1.58
15
Merchants Bank, N.A.
Caledonia, MN
15.58
15
Liberty State Bank
Powers Lake, ND
1.58
16
State Exchange Bank
Lamont, OK
15.43
17
State Bank of Ewen
Ewen, MI
1.56
17
Farmers & Merchants State Bank
Iroquois, SD
15.11
17
Curtis State Bank
Curtis, NE
1.56
17
Bank of Louisiana
Louisiana, MO
15.11
17
Garfield County Bank
Jordan, MT
1.56
19
Fullerton National Bank
Fullerton, NE
14.67
20
Western Bank of Chinook, N.A.
Chinook, MT
1.53
20
Thunder Bank
Sylvan Grove, KS
14.58
26 IndependentBanker 06|2006
University Bank’s Islamic division is
complemented by Midwest Loan Services, the
bank’s mortgage servicing company. Having a loan
servicer has allowed the bank to adjust mortgage
documents and statements for Islamic customers,
whose religion bars them for paying or receiving
interest—something that would be very expensive if
outsourced. Meanwhile, the exit of University
Bank’s chief competition has helped grow the
business 44 percent last year. The trend is expected
to continue.
“Midwest contributed 15 points to our ROE,”
Ranzini says. “It was meaningful, but not the reason
why we’re number one. In 2006, it will be the
reason we’re number one.”
One final piece of University Bank’s success in
2005 was a deal between the bank and a developer.
Ranzini laid out a plan for the developer to buy the
properties on the slightly rundown block where the
bank was located. As part of the $160 million
redevelopment, the developer paid the bank
$2.1 million—$1 million over the appraised value
of the building—and promised the bank the option
to buy up to 40,000 square feet in the new complex.
The bank used $1.7 million of the proceeds to book
a $500,000 profit and purchase and renovate a
historic landmark building in another location for
the bank’s headquarters.
“We started the year with the balance sheet
straining,” Ranzini says. “We had trouble growing
the balance sheet because capital wasn’t keeping
up. Now we’ve got the capital to take the bank past
$100 million in assets.”
Reaching the Underserved
Unlike the relatively diverse and well-off community
of Ann Arbor, the community of Roswell, N.M., is
noticeably divided into those with a lot of money
and those with very little. Bank of the Southwest has
found success serving the latter. “So much of our
population is Hispanic and lower income, and that
market wasn’t being served,” says James L.
Matteucci, chairman of the $126 million-asset bank.
Reaching out to the undeserved has been
profitable for Bank of the Southwest, especially
installment loans, which make up one-third of the
bank’s portfolio. Unsecured loans for things like
refrigerators, vacations and used cars yield a much
higher profit than traditional loans, averaging
12 percent, says Matteucci. The loans are
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)
Institution Name
Location
ROA
Institution Name
Location
ROE
1
University Bank
Ann Arbor, MI
4.17
1
University Bank
Ann Arbor, MI
65.34
2
Muleshoe State Bank
Muleshoe, TX
2.48
2
Security First National Bank
Hugo, OK
32.92
3
Security First National Bank
Hugo, OK
2.30
3
Muleshoe State Bank
Muleshoe, TX
27.28
4
California Pacific Bank
San Francisco, CA
2.27
4
Community Ban
Bristow, OK
23.11
5
The Apple Valley Bank & Trust Co.
Cheshire, CT
2.16
5
Smith River Community Bank, N.A.
Martinsville, VA
22.19
6
The Citizens State Bank of Ouray
Ouray, CO
2.09
6
Olathe State Bank
Olathe, CO
20.49
7
Bank of Dooly
Vienna, GA
2.06
7
Community Bank of Raymore
Raymore, MO
20.12
8
People's Bank and Trust Co.
Byrdstown, TN
2.05
8
Bank of Goochland, N.A
Goochland, VA
19.94
9
Smith River Community Bank, N.A.
Martinsville, VA
2.04
9
Bank of the Rio Grande, N.A.
Las Cruces, NM
19.12
10
Leitchfield Deposit Bank & Trust Co.
Leitchfield, KY
2.01
10
State Bank of Davis
Davis, IL
19.04
11
Wyoming Bank & Trust
Cheyenne, WY
1.95
11
The Citizens State Bank of Cortez
Cortez, CO
18.93
12
Global Commerce Bank
Doraville, GA
1.94
12
Freedom Bank of Southern Missouri
Cassville, MO
18.89
13
Union Bank and Trust Co.
Minneapolis, MN
1.92
13
The Apple Valley Bank & Trust Co.
Cheshire, CT
18.49
14
The Farmers Bank
Hardinsburg, KY
1.90
14
Wyoming Bank & Trust
Cheyenne, WY
18.36
15
McKenzie Banking Co.
McKenzie, TN
1.87
15
Wray State Bank
Wray, CO
18.27
18.12
16
First State Bank of Hotchkiss
Hotchkiss, CO
1.84
16
United Community Bank
Gonzales, LA
17
Bank of the Rio Grande, N.A.
Las Cruces, NM
1.81
17
Community National Bank at Bartow
Bartow, FL
18.07
18
Kentucky National Bank of Pikeville
Pikeville, KY
1.80
18
First State Bank
Grandview, TX
17.71
19
Bank of Goochland, N.A.
Goochland, VA
1.80
19
The Citizens State Bank of Ouray
Ouray, CO
17.67
20
Farmers State Bank
Hillsboro, WI
1.77
20
Security State Bank of Hibbing
Hibbing, MN
17.49
06|2006 IndependentBanker 27
— Top Bank Earners—
monitored well and permitted to go only 10 days
past due. The bank doesn’t hire collections officers
and instead expects loan officers to keep track of
their customers.
Bank of the Southwest’s approach to lending
helped it post an ROA of 2.91 percent and an ROE
of 33.22 percent, ranking it 13th and eighth,
respectively, among Subchapter S banks with $100
million to $250 million in assets.
In the same category, Liberty Savings Bank FSB,
in St. Cloud, Minn., has achieved profitability
through a different type of loan—residential
mortgages. While many community banks offer
mortgages to keep existing customers, Liberty
Savings offers them to attract new customers.
“Servicing home loans is our entré into a banking
relationship,” says Mark Bragelman, president and
CEO of the $127 million-asset bank. “We keep
those home loans coming in the door at whatever
price point we have to. That’s how the customer
comes to the bank.”
Once the customer is hooked, Bragelman and his
staff sell additional services. Ideally, a customer
takes out a home loan then direct deposit’s his or
her paycheck, opens a checking account with debit,
sets up an automatic house payment which also
pays tax and insurance escrow, and uses the bank’s
insurance agency for homeowner’s insurance. The
relationship, along with the knowledge that Liberty
Savings is the only local mortgage servicer in its
market, also helps keep business at the bank when a
customer chooses to refinance.
As a result, Liberty Savings ranked second in its
category in ROA with 4.46 percent and fourth in
ROE with 36.45 percent.
Empowering Staff
While many community banks try to keep
expenses at a minimum, one area where Russell
Shannon, chairman, president and CEO of First
National Bank of Andrews, Texas, refuses to
skimp is personnel. In a remote community of
12,000 people in the desert of Texas, the bank
has two drive-through locations, one grocery
store branch and five ATMs. Shannon, a man
with a knack for numbers, knows his overhead
expense is in the 94th percentile but he has his
reasons.
“We want to make it so convenient to bank
with us that there is no excuse not to,” says
Continued on page 35
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
Citizens State Bank
Petersburg, IN
3.21
1
Citizens State Bank
Petersburg, IN
35.57
2
Pioneer Trust Bank, N.A.
Salem, OR
2.85
2
FirstBank of Breckenridge
Breckenridge, CO
26.24
3
New Millennium Bank
New Brunswick, NJ 2.25
3
First Bank of Clewiston
Clewiston, FL
26.10
4
Cumberland Security Bank
Somerset, KY
2.13
4
FirstBank of Silverthorne
Silverthorne, CO
25.89
5
North Alabama Bank
Hazel Green, AL
2.07
5
The Village Bank
Saint George, UT
24.69
6
First Bank of Clewiston
Clewiston, FL
2.05
6
FirstBank of Evergreen
Evergreen, CO
22.94
7
Lake Community Bank
Lakeport, CA
2.02
7
Capital Bank, N.A.
Rockville, MD
22.41
8
River City Bank Inc.
Louisville, KY
1.99
8
Pioneer Trust Bank, N.A.
Salem, OR
21.80
8
San Luis Trust Bank, FSB
San Luis Obispo, CA 1.99
9
The First National Bank of Baird
Baird, TX
21.64
10
Mississippi River Bank
Belle Chasse, LA
1.98
10
Century Bank of Bartow County
Cartersville, GA
21.44
11
Heritage Bank of North Florida
Orange Park, FL
1.93
11
Lake Community Bank
Lakeport, CA
21.40
12
Centennial Bank
Ogden, UT
1.91
12
Cumberland Security Bank
Somerset, KY
21.37
13
Premier Bank
Fort Atkinson, WI
1.90
13
Heritage Bank of North Florida
Orange Park, FL
21.16
13
Woodlands National Bank
Hinckley, MN
1.90
14
Riverside Bank
Poughkeepsie, NY
20.85
13
Citizens Community Bank
Winchester, TN
1.90
15
North Alabama Bank
Hazel Green, AL
20.78
13
Small Town Bank
Wedowee, AL
1.90
16
Heartland National Bank
Sebring, FL
20.75
17
The City National Bank
Mineral Wells, TX
1.89
17
Northwest Bank & Trust Co.
Davenport, IA
20.64
17
Century Bank of Bartow County
Cartersville, GA
1.89
18
San Luis Trust Bank, FSB
San Luis Obispo, CA 20.41
19
FirstBank of Silverthorne
Silverthorne, CO
1.85
19
The New Washington State Bank
Charlestown, IN
20.32
20
Durden Banking Co. Inc.
Twin City, GA
1.81
20
Centennial Bank
Ogden, UT
20.30
20
South Sound Bank
Olympia, WA
1.81
28 IndependentBanker 06|2006
— Top Bank Earners —
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
ROE
1
1st Financial Bank USA
Dakota Dunes, SD
3.85
1
FirstBank of South Jeffco
Littleton, CO
29.47
2
Fidelity Bank of Florida, N.A.
Merritt Island, FL
2.83
2
FirstBank of Denver
Denver, CO
29.42
3
County Bank
Rehoboth Beach, DE 2.56
3
FirstBank of Arapahoe County
Centennial, CO
28.81
4
The Community Bank
Loganville, GA
2.38
4
FirstBank of Tech Center
Greenwood Village, CO 28.75
5
Citizens Bank
Carthag, TN
2.35
5
FirstBank of Lakewood
Lakewood, CO
6
First National Bank
Pierre, SD
2.33
6
FirstBank of Wheat Ridge
Wheat Ridge, CO
28.48
7
Far West Bank
Provo, UT
2.14
7
FirstBank North
Arvada, CO
28.01
8
The National Bank of Fredericksburg
Fredericksburg, VA
2.13
8
FirstBank of Arvada
Arvada, CO
27.73
9
The First National Bank of Wyoming
Camden Wyoming, DE 2.06
9
FirstBank of Boulder
Boulder, CO
27.42
10
Siuslaw Bank
Florence, OR
2.05
10
The National Bank of Fredericksburg
Fredericksburg, VA
26.89
11
FirstBank of Wheat Ridge
Wheat Ridge, CO
2.04
11
FirstBank of Avon
Avon, CO
26.05
11
Charter Bank Eau Claire
Eau Claire, WI
2.04
12
FirstBank of Aurora
Aurora, CO
26.03
13
FirstBank of South Jeffco
Littleton, CO
2.03
13
FirstBank of Cherry Creek
Denver, CO
25.66
13
FirstBank of Arapahoe County
Centennial, CO
2.03
14
County Bank
Rehoboth Beach, DE 25.33
15
FirstBank of Lakewood
Lakewood, CO
1.99
15
FirstBank of Littleton
Littleton, CO
24.18
16
FirstBank North
Arvada, CO
1.96
16
FirstBank of Longmont
Longmont, CO
22.99
16
FirstBank of Arvada
Arvada, CO
1.96
17
Fidelity Bank of Florida, N.A.
Merritt Island, FL
22.98
18
FirstBank of Douglas County
Castle Rock, CO
1.95
18
FirstBank of Vail
Vail, CO
22.70
19
FirstBank of Tech Center
Greenwood Village, CO 1.93
19
Highlands Independent Bank
Sebring, FL
22.24
20
FirstBank of Boulder
Boulder, CO
20
FirstBank of Douglas County
Castle Rock, CO
22.21
1.89
28.69
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
Institution Name
Location
1
Armed Forces Bank, N.A.
Fort Leavenworth, KS 5.48
1
Armed Forces Bank, N.A.
Fort Leavenworth, KS 53.83
2
Florida Community Bank
Immokalee, FL
2.36
2
Florida Community Bank
Immokalee, FL
2
Institution for Savings In Newburyport and its Vicinity Newburyport, MA
2.36
3
First Commercial Bank of Florida
Orlando, FL
26.04
4
The Bank of Commerce
2.31
4
The Commerce Bank of Washington, N.A. Seattle, WA
24.17
5
First United Security Bank
Thomasville, AL
2.28
5
BankWest of Nevada
Las Vegas, NV
23.53
6
Frontier Bank
Everett, WA
2.14
6
First Regional Bank
Century City, CA
22.60
7
Bank of the Cascades
Bend, OR
2.07
7
Center Bank
Los Angeles, CA
22.33
7
Temecula Valley Bank
Temecula, CA
2.07
8
FirstBank of Colorado
Lakewood, CO
22.26
9
First Regional Bank
Century City, CA
2.06
9
The Suffolk County National Bank of Riverhead Riverhead, NY
21.87
10
Lake Forest Bank & Trust Co.
Lake Forest, IL
2.05
10
Frontier Bank
Everett, WA
10
Union Bank and Trust Co.
Lincoln, NE
2.05
11
Western Sierra National Bank
Cameron Park, CA
21.56
10
Western Sierra National Bank
Cameron Park, CA
2.05
12
Century Bank, FSB
Sarasota, FL
21.23
10
Security State Bank & Trust
Fredericksburg, TX
2.05
13
Temecula Valley Bank
Temecula, CA
20.98
14
Skylands Community Bank
Hackettstown, NJ
2.02
14
Bank of the Cascades
Bend, OR
20.94
15
United Security Bank
Fresno, CA
1.96
15
The Bridgehampton National Bank
Bridgehampton, NY 20.89
16
Columbia River Bank
The Dalles, OR
1.94
16
Lake Forest Bank & Trust Co.
Lake Forest, IL
20.86
17
Hanmi Bank
Los Angeles, CA
1.91
17
First Tier Bank & Trust
Olean, NY
20.46
18
Bank of American Fork
American Fork, UT
1.89
18
Columbia River Bank
The Dalles, OR
20.17
19
Citizens & Farmers Bank
West Point, VA
1.85
19
Community Bank of Central California
Salinas, CA
20.09
20
Center Bank
Los Angeles, CA
1.83
20
Orion Bank
Naples, FL
19.85
30 IndependentBanker 06|2006
Idaho Falls, ID
ROA
ROE
26.38
21.61
TOP ROA SUBCHAPTER S BANKS
TOP ROE SUBCHAPTER S BANKS
(banks with less than $50 million in assets)
(banks with less than $50 million in assets)
Institution Name
Location
ROA
1
Bryant State Bank
Bryant, SD
5.52
1
Institution Name
Location
ROE
Elysian Bank
Elysian, MN
40.91
2
Elysian Bank
Elysian, MN
4.27
2
State Bank of McGregor
McGregor, MN
38.22
3
Richland State Bank
Bruce, SD
4.15
3
Prairie Sun Bank
Milan, MN
36.94
4
State Bank of McGregor
McGregor, MN
3.30
4
Farmers & Merchants Bank
Kendall, WI
36.08
5
Randall State Bank
Randall, MN
3.24
5
Randall State Bank
Randall, MN
33.36
6
Farmers and Merchants Bank of Hill City Hill City, KS
3.13
6
Bryant State Bank
Bryant, SD
33.18
7
Corydon State Bank
Corydon, IA
3.11
7
First Valley Bank
Seeley Lake, MT
29.96
8
Prinsburg State Bank
Prinsburg, MN
3.07
8
Lusk State Bank
Lusk, WY
29.30
Moorhead State Bank
Moorhead, IA
3.04
9
Farmers and Merchants Bank of Hill City
Hill City, KS
29.03
10
Beauregard Federal Savings Bank
Deridder, LA
3.00
10
Nebraska State Bank
Oshkosh, NE
28.87
11
Farmers & Merchants Bank
Kendall, WI
2.95
11
Bank of Commerce
Chouteau, OK
27.64
12
Stockmens National Bank in Cotulla
Cotulla, TX
2.92
12
Richland State Bank
Bruce, SD
25.28
13
Citizens State Bank
Cheney, KS
2.89
13
Stockmens National Bank in Cotulla
Cotulla, TX
24.82
14
Produce State Bank
Hollandale, MN
2.79
14
Corydon State Bank
Corydon, IA
24.48
15
Prairie Sun Bank
Mila, MN
2.77
15
Community State Bank
Hennessey, OK
24.01
16
First State Bank of Beecher City
Beecher City, IL
2.68
16
State Bank of Tower
Tower, MN
23.92
17
Drayton State Bank
Drayton, ND
2.65
17
Farmers State Bank of Underwood
Underwood, MN
23.91
18
Bank of Commerce
Chouteau, OK
2.60
18
Drayton State Bank
Drayton, ND
23.82
19
Nebraska State Bank
Oshkosh, NE
2.58
19
First Community Bank Lester Prairie
Lester Prairie, MN
23.77
20
Great Plains Bank
Eureka, SD
2.56
20
The First National Bank of Gilman
Gilman, IL
23.42
20
The Citizens State Bank of Taylor County
Reynolds, GA
2.56
9
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
Security Bank of Southwest Missouri
Cassville, MO
3.44
1
Bank of Dade
Trenton, GA
41.83
2
Ruby Valley National Bank
Twin Bridges, MT
3.18
2
First National Bank
Stigler, OK
40.48
3
Security State Bank
Littlefield, TX
3.09
3
Security Bank of Southwest Missouri
Cassville, MO
37.70
4
First National Bank of Pinedale
Pinedale, WY
3.08
4
Bank Northwest
Hamilton, MO
36.46
5
Peoples State Bank
De Smet, SD
2.92
5
Wilburton State Bank
Wilburton, OK
36.11
6
Latimer State Bank
Wilburton, OK
2.85
6
State Bank of New Richland
New Richland, MN
33.98
7
Citizens State Bank
Enderlin, ND
2.84
7
State Bank of Southwest Missouri
Springfield, MO
33.12
8
First National Bank of Alvin
Alvin, TX
2.81
8
First State Bank
Graham, TX
32.85
9
The Bank of Kaukauna
Kaukauna, WI
2.76
9
Community Bank
Longview, TX
31.56
10
State Bank of Wheaton
Wheaton, MN
2.70
10
Live Oak State Bank
Dallas, TX
31.47
11
Bank of Dade
Trenton, GA
2.69
11
Security State Bank of Howard Lake
Howard Lake, MN
30.46
12
Mason National Bank
Mason, TX
2.68
12
Covenant Bank
Leeds, AL
30.33
12
Central State Bank
State Center, IA
2.68
13
The National Bank of Andrews
Andrews, TX
29.96
14
Security State Bank of Aitkin
Aitkin, MN
2.67
14
Bank Iowa
Clarinda, IA
28.86
15
Lakes State Bank
Pequot Lakes, MN
2.66
15
Ruby Valley National Bank
Twin Bridges, MT
28.46
15
Alamerica Bank
Birmingham, AL
2.66
16
Bank of St. Croix Inc.
Christiansted, VI
28.02
17
Bank Northwest
Hamilton, MO
2.65
17
Security State Bank
Littlefield, TX
27.77
18
Bank of Perry County
Lobelville, TN
2.63
18
First Capital Bank
Guthrie, OK
27.66
18
First National Bank
Stigler, OK
2.63
19
First Community Bank
Milton, WI
27.34
20
Preston National Bank
Dallas, TX
2.61
20
Community Pride Bank
Ham Lake, MN
27.22
06|2006 IndependentBanker 31
— Top Bank Earners —
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
ROE
1
Miami Valley Bank
Lakeview, OH
4.82
1
Miami Valley Bank
Lakeview, OH
44.30
2
Liberty Savings Bank, FSB
Saint Cloud, MN
4.46
2
First National Bank of Picayune
Picayune, MS
38.30
3
TransCapital Bank
Hallandale Beach, FL 3.57
3
Fort Hood National Bank
Fort Hood, TX
37.94
4
American Alliance Bank
Lake City, MN
3.55
4
Liberty Savings Bank, FSB
Saint Cloud, MN
36.45
5
Commerce Bank
Geneva, MN
3.52
5
United Security Bank
Sparta, GA
34.79
6
The Farmers Savings Bank
Spencer, OH
3.16
6
Farmers and Merchants State Bank of Pierz Pierz, MN
7
Farmers and Merchants State Bank of Pierz Pierz, MN
3.11
7
North Valley Bank
Denver, CO
34.24
7
Farmers Bank
3.11
8
Bank of the Southwest
Roswell, NM
33.22
9
32.81
Ault, CO
34.54
First National Bank of Picayune
Picayune, MS
3.01
9
Key West Bank
Key West, FL
10
Pearland State Bank
Pearland, TX
2.99
10
Interstate Bank
Oak Forest, IL
32.35
11
The City National Bank and Trust Co. of Guymon
Guymon, OK
2.95
11
Commerce Bank
Geneva, MN
31.84
12
Key West Bank
Key West, FL
2.93
12
Montrose Bank
Montrose, CO
31.77
13
Bank of the Southwest
Roswell, NM
2.91
13
First Bank
Burkburnett, TX
30.65
14
Prior Lake State Bank
Prior Lake, MN
2.83
14
Central National Bank of Poteau
Poteau, OK
30.28
15
The Bank
Oberlin, KS
2.82
15
Home Federal Bank of Hollywood
Hallandale Beach, FL 30.23
16
First Commerce Bank
Corpus Christi, TX
2.78
16
TransCapital Bank
Hallandale Beach, FL 29.88
17
Montrose Bank
Montrose, CO
2.73
17
Valley Bank of Commerce
Roswel, NM
29.87
17
Western Bank
Artesia, NM
2.73
18
State Bank of New Prague
New Prague, MN
29.46
19
First Bank, Upper Michigan
Gladstone, MI
2.70
19
Sunshine State Community Bank
Port Orange, FL
29.27
20
The Mercantile Bank of Louisiana
Louisiana, MO
2.65
20
The City National Bank and Trust Co. of Guymon
Guymon, OK
28.76
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
1
Yellowstone Bank
Laurel, MT
3.46
1
Citizens State Bank of Clara City
Clara City, MN
41.57
2
Citizens State Bank of Clara City
Clara City, MN
3.27
2
The Bank/First Citizens Bank
Cleveland, TN
34.38
3
Plains Commerce Bank
Aberdeen, SD
3.21
3
Citizens Bank of Las Cruces
Las Cruces, NM
34.21
4
Union National Bank
Elgin, IL
3.14
4
Sterling Bank
West Palm Beach, FL 33.06
5
Alliance Bank
New Ulm, MN
3.02
5
The Citizens Bank
Farmington, NM
32.41
6
Stockmans Bank
Elk Grove, CA
2.85
6
Union National Bank
Elgin, IL
30.05
7
Sterling Bank
West Palm Beach, FL 2.66
7
Farmers & Merchants Bank
Monticello, FL
29.98
7
Pinnacle Bank
Elberton, GA
2.66
8
The First National Bank
Artesia, NM
29.54
9
The Bank/First Citizens Bank
Cleveland, TN
2.65
9
Stockmans Bank
Elk Grove, CA
29.11
10
First Security Bank
Bozeman, MT
2.54
10
Alliance Bank
New Ulm, MN
28.96
11
Farmers & Merchants Bank
Monticello, FL
2.51
11
Frontier State Bank
Oklahoma City, OK
28.30
12
Quail Creek Bank, N.A.
Oklahoma City, OK
2.48
12
The First National Bank of Durango
Durango, CO
27.50
13
Western Commerce Bank
Carlsbad, NM
2.47
13
First Security Bank
Bozeman, MT
27.24
14
Coastal Community Bank
Panama City, FL
2.42
14
Quail Creek Bank, N.A.
Oklahoma City, OK
27.15
15
Citizens Bank of Las Cruces
Las Cruces, NM
2.37
15
The Bank, N.A.
McAlester, OK
26.24
16
The Citizens Bank
Farmington, NM
2.36
16
Coastal Community Bank
Panama City, FL
25.60
17
American Bank
Bozeman, MT
2.28
17
The Foster Bank
Chicago, IL
25.37
18
Falcon International Bank
Laredo, TX
2.25
18
First City Bank of Florida
Fort Walton Beach, FL 24.79
19
The Foster Bank
Chicago, IL
2.23
19
American Bank of the North
Nashwauk, MN
24.73
20
Palm Desert National Bank
Palm Desert, CA
2.20
20
Sun West Bank
Las Vegas, NV
24.64
32 IndependentBanker 06|2006
ROE
— Top Bank Earners —
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
ROE
1
National Bank of Kansas City
Leawood, KS
11.52
1
National Bank of Kansas City
Leawood, KS
72.06
2
Stearns Bank, N.A.
Saint Cloud, MN
4.23
2
First National Bank Texas
Killeen, TX
36.60
3
Woodforest National Bank
Houston, TX
2.73
3
Stearns Bank, N.A.
Saint Cloud, MN
36.56
4
First National Bank Texas
Killeen, TX
2.71
4
Woodforest National Bank
Houston, TX
34.47
5
Bank of Washington
Washington, MO
2.58
5
Stockman Bank of Montana
Miles City, MT
27.88
5
Stockman Bank of Montana
Miles City, MT
2.58
6
Bank of the West
El Paso, TX
27.66
7
Citizens Bank
Elizabethton, TN
2.54
7
ANB Financial, N.A.
Bentonville, AR
27.28
8
Bank of the Wes
El Paso, TX
2.25
8
American Bank, N.A.
Corpus Christi, TX
26.61
9
United Bank of Iowa
Ida Grove, IA
2.22
9
United Bank of Iowa
Ida Grove, IA
26.39
10
ANB Financial, N.A.
Bentonville, AR
2.17
10
First Command Bank
Fort Worth, TX
26.13
34 IndependentBanker 06|2006
Continued from page 28
Shannon, who faces competition from two credit
unions and another commercial bank.
The strategy has worked, helping The National
Bank of Andrews to make $60,000 more than its
peers, according to Shannon’s calculations. The
bank’s recently purchased title insurance
company also added another $100,000 in fee
income to the bottom line and helped the $78
million-asset bank post an ROE of 29.96 percent,
13th among Subchapter S banks with $50
million to $100 million in assets.
Despite Shannon’s calculations and planning,
he admits 2005 was a bit of an anomaly for the
bank. Energy is the only industry in town and
record-high prices have pushed the local
economy into a frenzy just as the doldrums of
$8-a-barrell oil created a recession in 1998. But
the bank takes the cyclical nature of its economy
into consideration when planning, holding 25
percent of its deposits in demand accounts. “We
need to have something to do with money before
we have it,” says Shannon. “We don’t want to get
caught with expensive money.”
Whether through the natural cycles of the
economy, strategic planning or innovative
programs, ICBA and Independent Banker
congratulate all the strong community banks that
make up the 2005 list of best-performing
community banks. ib
Kelly Pike is assistant director of publications. Reach
her at kelly.pike@icba.org.
06|2006 IndependentBanker 35