“I think he can lead the charge”
A newly formed Mississippi-based bank holding company announced Thursday plans to purchase BancSouth Financial Corp., parent company of Crystal Springs-based Bank of the South. via The Clarion-Ledger
Join the discussion below, or Read more at The Clarion-Ledger.
#41 Jun 1, 2010
For the year ended December 31, 2009, the bank recorded a net loss of $-1,249.00 thousand. The bank experienced a return on average assets of -0.41% over the latest four quarters. Year earlier results amounted to a net loss of $-2,752.00 thousand, or a -1.83% annualized ROA. An ROA of at least 1.0% is deemed satisfactory in accordance with banking industry standards, and the industry's ROA for the year of 2009 was approximately .01%. We have concluded that for the year of 2009, the bank achieved substantially below average return on equity , and, as noted, sustained an actual loss for that one year period . We deem net interest margin to have been substantially below average, and the reported percentage should cause inquiry into balance sheet composition, asset yields, and liability costs. Noninterest income was better than normal. We also observed overhead ratios that were higher than average, and the composition of overhead should be thoroughly analyzed. Importantly, net interest margins, noninterest income components, and overhead expense levels represent operating factors that combine to impact overall operating results.
ASSET QUALITY ANALYSIS
The bank revealed, as previously stated, good asset quality. Our conclusion with respect to asset quality incorporates our analysis of data depicting regional economic conditions as well as our computations of a relatively low December 31, 2009 nonperforming asset ratio, much better than normal reserve coverage for nonperforming loans, and apparently acceptable quality, or no greater than average, holdings of commercial real estate and construction loans, two categories that can intensify credit risk.
Other asset categories, such as farm and consumer loans, which may carry more than usual default potential, should not have a substantial negative impact upon future results.
Loan yield can measure financial reward versus credit risk. Excessive loan yield may be an indicator of existing or future problems. Our loan review indicates that the bank has assumed a seemingly prudent position between credit risk and financial reward. Likewise, for banking institutions, substantially higher than normal asset growth can be deemed speculative and can lead to financial deterioration. This bank exhibits such growth which, if unrelated to merger activity, should be subject to further inquiry.
As of December 31, 2009, the bank displayed Below Normal balance sheet liquidity and a Somewhat Greater Than Average Dependence upon wholesale, or non-core liabilities, which include all borrowings, such as Federal Home Loan Bank Advances, and CD's greater than $100,000.
Accounting principles require some securities to be categorized as "Available-for-Sale. " Changes in market value of these securities are reflected through the GAAP (Generally Accepted Accounting Principles) net worth of the institution. Based upon the bank's present balance sheet, changes in the value of the current level of securities reported as "Available-for-Sale" are almost certain to have a substantial impact upon future net worth of the bank.
This bank has been rated below average.
Negative factors that impacted that rating follow:
As noted previously, early warning indicators, possibly requiring specific investigation include:
Net Interest Margin
As stated, we have determined a composite Star rating for this bank of 2 G , indicative of a below average financial condition. At times, financial conditions of banks change rapidly and significantly. Hence, our Safe & Sound Star ratings should not be deemed predictive of likely future ratings. However, in view of early warning indicators set forth within this report, in combination with the institution's financial data, we believe that the Star rating for this institution is unlikely to change within the ensuing twelve month period.
#42 Jun 5, 2010
How can Bank of the South.....currently known as Metropolitan Bank.....gets a rating of 2G? The "2" stands for problematic/below peer group and the "G" designates "high growth".
I suppose this means they are experiencing high growth with substandard management?
Someone needs to advise the tellers inside the bank that when drive up customers are doing transactions.....we're watching the ladies on the teller line surf the internet. I think the correct term for employees surfing the internet at work is "slackers".
#43 Jul 23, 2010
Speaking of management, who is the real President of this bank? I see Rita has a big sign at Copiah Academy stating she's the President. Surely that's not the case. I went to high school with Rita and I think she'll tell you that she's not the sharpest tool in the shed (example - See Dione's post on Rita putting floor tile on counter tops). If she is indeed the President, I would like to formally put my name in the running to run/manage the bank. Heck, I have a college degree, that's got to put me ahead of Rita in the qualification category??
Another question, who's decision was it to paint the bank "mental ward grey"? Please give that person the dunce hat and put him in the corner for 3 days....
#44 Jul 24, 2010
I no longer care what happens at the Bank of the South currently known as Metropolitan Bank. All they get from me is $7 a month for a commercial checking.
The personal friendly service inside the bank is poor at best. The Lady working the drive up is quite good. She's no hassle, all business. Inside the bank is entirely different. Unhappy employees. No smiles. I find myself making lots of night deposits just to avoid confrontation. It's sad.
#45 Sep 16, 2012
Who is running this bank? It ashame what has happened to a once great bank.. I won't get into my long story, but it really is a surprise to see the bank fall so far so fast..
#46 Sep 17, 2012
Jobey......the bank sold. It's now Metropolitan Bank.....but the CS "branch" is still called Bank of the South.
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