Table: Cache Valley Bank Performance Highlights
| Bank Name | Bank Location | 3 Year Average ROAE 2020-2022 | ROAA | NIM | NPAs/Total Assets | Core Deposits/Total Assets |
|———————-|—————|——————————-|——-|——|——————-|—————————|
| Cache Valley Bank | Logan, Utah | 24.00% | 1.94% | 4.06%| 0.28% | 88.96% |
Cache Valley Bank, located in Logan, Utah, has consistently demonstrated strong performance and financial stability. Let’s take a closer look at the key metrics that showcase the bank’s success over the past three years.
1. 3 Year Average Return on Average Equity (ROAE) – 24.00%:
Return on Equity (ROE) is a measure of a company’s profitability relative to its shareholder’s equity. Cache Valley Bank has exceeded expectations with an impressive 3-year average ROAE of 24.00%. This indicates that the bank has consistently generated substantial profits relative to the equity invested by its shareholders. A higher ROAE is generally seen as a positive indicator of financial strength and management efficiency.
2. Return on Average Assets (ROAA) – 1.94%:
ROAA is a measure of a bank’s profitability in relation to its total assets. Cache Valley Bank’s ROAA of 1.94% highlights the bank’s ability to generate earnings from its asset base. This tells us that the bank has been successful in utilizing its assets effectively and generating a solid return on investment. A higher ROAA is indicative of a bank’s ability to manage its assets and generate income efficiently.
3. Net Interest Margin (NIM) – 4.06%:
Net Interest Margin is a key profitability metric that calculates the difference between interest earned on loans and investments and interest paid on deposits and borrowings. A higher NIM suggests that the bank’s interest-earning assets are generating more income than the interest expense incurred. Cache Valley Bank’s NIM of 4.06% highlights the bank’s ability to effectively manage its interest income and expenses, thereby maximizing its profitability.
4. Non-Performing Assets (NPAs) to Total Assets – 0.28%:
Non-Performing Assets (NPAs) refers to loans or advances that are in default or at risk of default. It is crucial for banks to maintain a low NPA ratio, as it indicates the bank’s level of credit risk and asset quality. Cache Valley Bank’s low NPA ratio of 0.28% demonstrates the bank’s commitment to sound lending practices and risk management. This suggests that the bank has a healthy loan portfolio, with a minimal amount of non-performing loans.
5. Core Deposits to Total Assets – 88.96%:
Core Deposits are primarily comprised of funds deposited by customers that form a stable source of funding for a bank. A high Core Deposits to Total Assets ratio signifies the bank’s ability to attract and retain customer deposits, creating a reliable base for lending and investment activities. Cache Valley Bank’s impressive Core Deposits to Total Assets ratio of 88.96% indicates the bank’s strong customer relationships and its ability to generate stable funding for its operations.
In conclusion, Cache Valley Bank’s performance highlights showcase its commitment to financial strength, efficient management, and sound risk practices. With an above-average 3-year average ROAE, a healthy ROAA and NIM, and low NPAs, coupled with a significant core deposit base, the bank demonstrates its ability to generate consistent profits while maintaining a strong asset quality. Cache Valley Bank’s performance metrics reaffirm its position as a trusted and reliable banking institution in Logan, Utah.
