The Canandaigua National Bank and Trust Company
Canandaigua, NY
Canandaigua, NY-based The Canandaigua National Bank and Trust Company is an FDIC-insured bank started in 1887. As of December 31, 2017, the bank held equity of $223.2 million on $2.64 billion in assets.
U.S. bank customers have $2.16 billion on deposit at 24 offices in NY run by 459 full-time employees. With that footprint, the bank holds loans and leases worth $2.14 billion, including real estate loans of $1.37 billion.
Overall, Bankrate believes that, as of December 31, 2017, The Canandaigua National Bank and Trust Company exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the bank did on the three important criteria Bankrate used to score U.S. banks.
Capital is a valuable measurement of a bank's financial strength. It acts as a bulwark against losses and as protection for accountholders when a bank is experiencing financial instability. When looking at safety and soundness, the more capital, the better.
The Canandaigua National Bank and Trust Company came in below the national average of 13.13 on our test to measure the adequacy of a bank's capital, racking up 8 out of a possible 30 points.
A bank's Tier 1 capital ratio is a widely followed measure of this buffer. The Canandaigua National Bank and Trust Company's Tier 1 capital ratio was 10.41 percent, exceeding the 6 percent level regulators consider adequate, but less than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial downturns.
Overall, The Canandaigua National Bank and Trust Company held equity amounting to 8.44 percent of its assets, which was lower than the national average of 12.03 percent.
Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the bank's capitalization and allocated loan loss reserves.
Having large numbers of these types of assets may eventually require a bank to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the bank, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, The Canandaigua National Bank and Trust Company scored 40 out of a possible 40 points, above the national average of 37.49 points.
The percentage of problem assets a bank holds compared to its total assets is a widely used indicator of asset quality.As of December 31, 2017, 0.62 percent of The Canandaigua National Bank and Trust Company's loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's below the national average of 1.01 percent.
Banks keep a reserve to deal with troubled assets known as an "allowance for loan and lease losses." That reserve's size can be a useful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of at-risk loans. Unfortunately, the FDIC did not provide information on The Canandaigua National Bank and Trust Company's loan loss allowance in its most recent filings.
How profitable a bank is affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
The Canandaigua National Bank and Trust Company scored 20 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for The Canandaigua National Bank and Trust Company was 10.89 percent, above the national average of 8.10 percent.
The bank recorded net income of $23.6 million on total equity of $223.2 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.