State Bank of Texas named Best-run Community Bank in USA

SBT TRIO
Chairman/CEO Chandrakant Patel with President Sushil Patel and EVP/Chief Lending Officer Rajan Patel

India Post News Service

DALLAS, TX: State Bank of Texas was recently named the best-run bank in the country by Sageworks, a financial information company that annually analyzes and ranks banks based on prior-year performance. Based on an analysis of data from more than 4,100 banks in the United States, Sageworks identified the 15 best-run community banks using a combination of their return on average assets (ROAA) and efficiency ratio. State Bank of Texas, headquartered in Dallas with $836 million in assets, topped the list as the best-run community bank in the U.S., based on its 2017 ROAA and efficiency ratio.

In addition to its Texas locations, State Bank of Texas has two locations in Chicago and services at both Chicago airports—O’Hare and Midway. One of its Chicago locations is on Devon Avenue, the mini India town.  This location has been very effective in meeting the needs of local Indian and non-Indian community members for both deposit and loan services.

 

  

Institution Name

 

City

 

State

 

ROAA

Efficiency RatioTotal Assets

($)

1State Bank of TexasDallasTX8.3%20.1%839,631,000
2First Credit BankLos AngelesCA5.7%9.6%460,352,000
3Beal Bank, SSBPlanoTX5.3%38.5%1,889,185,000
4Town & Country BankLas VegasNV4.6%34.4%160,843,000
5Beal Bank USALas VegasNV4.0%36.3%5,597,010,000
6PrinsBankPrinsburgMN3.7%40.0%141,862,000
7Bank 7Oklahoma CityOK3.7%36.5%702,648,000
8Apex BankCamdenTN3.5%37.6%524,869,000
9John Deere Financial, F.S.B.MadisonWI3.1%32.5%2,856,384,000
10Cross River BankTeaneckNJ3.0%38.3%1,372,916,000
11Home Bank of CaliforniaSan DiegoCA2.9%38.8%159,084,000
12Corydon State BankCorydonIA2.8%21.2%120,740,000
13The Yellowstone BankLaurelMT2.8%39.7%722,681,000
14Prime BankEdmondOK2.8%39.4%259,085,000
15Metro City BankDoravilleGA2.7%37.0%1,292,216,000

 

To evaluate bank performance, Sageworks looked at two key indicators of a well-run bank – return on average assets (ROAA) and efficiency ratio. ROAA measures how effectively each bank generates income using its available assets and can be used to compare the performance of banks of any size. The community banks on the top 15 list all demonstrate that they have used their assets – loans, investments, fixed or physical assets, etc. – to more efficiently generate income for their institutions.

The second ratio used to determine the ranking, Efficiency Ratio, compares how much a bank is spending to how much it is making in a given time period, speaking to how well the bank is controlling spending and managing assets to generate profit. It is a frequently assessed metric to determine bank performance, as it reflects the bank’s overhead as a percentage of its revenues. The Efficiency Ratio is calculated by dividing the bank’s noninterest expenses by its net income.

State Bank of Texas has topped this list before, with both year-end 2014 and 2016 results. This consistency speaks to the bank’s laser focus on its core lending business and its careful management of bank resources.

“We are extremely pleased to be named best-run bank again this year,” said Sushil Patel, president of State Bank, “and we look forward to continued excellent results.”

State Bank of Texas was founded in 1987 by Chandrakant Patel and continues to be owned and operated by the Patel family, with Chan Patel (father) serving as CEO, Sushil Patel (son) as president, and Rajan Patel (son) as EVP and chief lending officer. As the largest Indian-American-owned bank in the United States, the bank focuses heavily on lending within the hospitality industry. SBT intends to continue its formula of providing strong financial services to hard-working entrepreneurs while applying the same conservative fiscal practices that have been responsible for its historical success.

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