In today’s economy, the news of possible financial institution failures have many consumers concerned about where they keep their money and the safety and soundness of the financial institution they do business with. We at Independence Bank want to take this time to share with you our corporate philosophy and how it “stacks” up against other financial institutions.
- Independence Bank has zero exposure to “sub-prime” mortgages and other “high risk” loans that we read so much about.
When many financial institutions participated in making “sub-prime” mortgage loans, Independence Bank stayed out of it. We believe in making local loans to local borrowers. Why? Because Independence Bank is a local community bank that still believes in doing what is right for our customer and our community. Our underwriting standards have always been guided by traditional financing. That’s why Independence Bank has one of the lowest delinquency ratios in the nation. Below is a chart comparing loan delinquency percentages for Independence Bank and other institutions our asset size nationwide:
Loan Delinquency Compared with Peer Group
Peer Groups of our Asset Size (1,320)
- Not only does Independence Bank have a much lower loan delinquency rate than our national peers’, we also have a much lower net loan charge-off percentage than our peers. The troubled financial institutions that we read about today have very high loan delinquency rates and extremely high loan charge-offs. In 2013, the net loan charge-off rate for Independence Bank was approximately 0.13% compared to all other financial institutions of our asset size which had charged off 0.27%. In other words, other banks our asset size charged off twice as many loans.
- Independence Bank’s capital position has received the highest regulatory rating by the FDIC of “well capitalized.” We are very proud of this rating and as an Independence Bank customer, you should be too.
- Banks are also given an IDC rating based on their performance of financial ratios from a third party called IDC Financial Publishing, Inc which is considered the “Gold Standard” in the banking industry. Those rankings range from 1 being the lowest and 300 being the highest. Independence Bank’s IDC rating is 283 which is “Superior” and ranks in the top 5% of all banks. Banks with a “Superior” rating are strong financial institutions with favorable capital ratios, have quality management in place that is reflected from a balance sheet and an income performance standpoint and consistently generate a return on equity (ROE) that is above cost of equity (COE).
Independence Bank’s philosophy has always been providing extraordinary customer service.
“Customer service is our number one priority. No amount of additional service charges; No amount of cost cutting; No amount of interest margin gain will ever reap the financial rewards that superior customer service will benefit our bank.”
– Charles J. Reid
This simple but effective philosophy has Independence Bank’s financial ratio going up while other financial institutions ratios are going down. Independence Bank just completed the first nine months of 2013 with record earnings. In addition to record earnings, our capital position as of September 30, 2013 was the highest in our history.
In summary you shouldn’t be concerned about your deposits. Your bank, Independence Bank, is “well capitalized” with virtually no loan problems. For over a century our knowledgeable, experienced management and staff has been dedicated to you.