Two banks with roots and/or a presence in Great Bend have been ranked in the top five mid-sized banks by the Kansas City Business Journal.
The mid-size category included banks with $250 million to $1 billion in assets. The Journal looked at mid-year numbers from the Federal Deposit Insurance Corporation to make its determinations.
Because of its strong core capital and its low percentage of problem loans, American State ranked second among the top 5 midsize banks with a loan portfolio of $184.87 million.
While American State doesn’t have any physical locations in Kansas City, it is part of the Kansas City Federal Reserve District.
In fourth was Central National Bank. It had the second-highest core-capital ratio in the top five and a
problem loan ratio of only 0.12 percent.
The publication determined the rankings using five categories:
• Problem-loan ratio shows the percentage of loans in a bank’s portfolio that are 90 days past due or no longer accruing interest at the stated rate
• Texas ratio measures the credit problems of a bank. It is determined by adding up the problem
loans and dividing them by a bank’s equity capital and loan-loss reserves. If a bank has a Texas
ratio that exceeds 100 percent, it’s in serious jeopardy of being shut down by regulators.
• Core-capital ratio measures the amount of reserves a bank sets aside. Banks are required to hold
a minimum of 4 percent core capital in reserve to be considered well capitalized by regulators. The
more core capital a bank has, the better it can handle problems.
• Equity capital is capital set aside that is free of debt and available to be used in the interest of the
• Total loans and leases were used to help separate banks with similar numbers, giving more
emphasis to the banks with larger portfolios.
Others in the top five included:
No. 5: Platte Valley Bank of Missouri impresses with strong core capital and its low rate of problem
loans that put it ahead of our honorable mentions. (Previous: No.5 in 04 2014)
No. 3: Missouri Bank & Trust didn’t have a single problem loan in a portfolio worth $421.49
million, which is without a doubt an impressive feat. It slightly improved on its core capital and
equity capital since the end of 2014, and a bit more improvement would put it in competition for the
top spot on the list. (Previous: No.2 in 04 2014)
No. 1: The strongest midsize bank in Kansas City for mid-year 2015 goes once again to Bank of
Lee’s Summit. Only 0.07 percent of its $106.11 million in loans were troubled, and its equity capital
is worth more than 50 percent of its loan portfolio. This bank is positioned well to make investments
to grow its business and weather any economic storm. (Previous: No. 1 in Q4 2014)
Honorable mentions went to:
• Morrill & lanes Bank & Trust Co. once again posted really strong numbers, and despite having a
minuscule problem loan ratio and lots of reserves, it dropped out of the Top Five where it previously
ranked third on our ranking at the end of 2014.
• The Mission Bank once again gets an honorable mention for its incredibly strong reserves, which
ensure it will have a bright future.