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Croghan Colonial Bank Bellevue, Ohio

Croghan Colonial Bank Bellevue, Ohio

Croghan Colonial Bank located in Bellevue, Ohio was founded in 1872 by the Ohio Attorney General. Among its other founding officers were Governor Foster Pratt of Kentucky, Colonel James Clarke of Bellevue, and George Croghan Sennott of Cleveland.

Croghan Colonial Bank was one of four banks to receive a state charter under this act. The other three were located in Cincinnati (the Second National Bank), Dayton (First National Bank), and Steubenville (Mahoning National Bank). Initially called the Fourth State Bank, it was organized on November 13, 1872, with an authorized capital stock of $150,000 at which time 23 individuals purchased shares to organize the bank. Four years later, on May 21, 1876, Croghan Colonial Bank received a national charter. At that time there were twenty-one stockholders and among them was George Sennott, the largest shareholder.

Benefits of Being a Member of Croghan Colonial

Aside from the banking services offered, Croghan Colonial Bank also offers a variety of deposit products. The bank’s mobile app allows you to view your statement, transfer money, and check your account balance, as well as make transfers. In addition, the bank offers a wide variety of deposit products, including certificates of deposit and savings. Aside from these, you can also use the bank’s web and mobile banking applications to make deposits and withdrawals.

Benefits of Being a Member of Croghan Colonial.

A few of the most important benefits of this bank are its high-interest rates and low monthly fees. It also offers a variety of deposit and loan options, including savings and loans. It has a decent amount of capital, with $678 million in assets. Moreover, it also has a reasonable rate of fees, but the bank’s standard checking product has a $4 monthly fee. However, if the customer is a senior citizen, this fee becomes zero.

The bank has branches in Ohio and Kentucky. It also provides ATM services. This bank is ideally suited for people who are looking to invest their money into something that has more returns on investment. Croghan Colonial Bank can provide customers with high yields because it operates as a community bank. The bank partners with other companies so it can offer customers products they want at an affordable price, which means better rates on:

  • deposit accounts
  • loans
  • and mortgages.

The Drawbacks of The Bank

Of course, the Croghan Colonial Bank has a low Texas Ratio of 0.91%. This number is an indication of how many bad assets the bank has compared to its available capital. Its assets total $840 million, and its deposits are $678 million. Despite the low Texas Ratio, the bank’s fees are high compared to other banks in the U.S.

However, according to our assessment, this bank needs improvement when compared to similar banks in terms of capital adequacy and profitability. Capital Adequacy measures how much money the bank has available to pay its debts, while Profitability calculates efficiency at producing profits. The Croghan Colonial Bank seems currently undercapitalized for its business model.

This bank appears to be less profitable than similar banks in Ohio. Its Texas Ratio sits at 0%, meaning it has deposited more funds into potentially “toxic” assets than it holds on its books as cash assets that are not readily available for customer withdrawal. Essentially, these ratios indicate that the Croghan Colonial Bank has not been able to properly assess the overall risk of its assets.

The Croghan Colonial Bank operates with an earned equity-to-assets ratio of 0.92%, which is insufficient for a bank of its size. Banks are considered healthy if their ratios are between 8% and 12%. If this bank wants to continue operating, it needs to reconsider its business plan to boost profitability and increase capital adequacy.

What should Croghan Colonial Bank Do Though?

The Croghan Colonial Bank should do the following to increase its profitability: 

Croghan Colonial Bank.
  1. Increase interest rates on deposits and loans. The current interest rates are very low. This will help them generate more income from their assets, as well as attract new clients to use their services. If they can convince enough people to switch from other banks to theirs, this would be an even better solution.
  2. Sell off unnecessary assets that it may have acquired through a previous merger or acquisition. These additional liabilities will cut into the bank’s net worth calculation and decrease its equity-to-assets ratio even further. Removing these liabilities will make it appear as if the bank is generating a higher return on investment for stockholders without really affecting the true profitability of the bank.
  3. Buy out a competing bank that has been operating in the area for a long time and is currently experiencing financial difficulties due to an unpredictable environment or other variables. If they can convince enough stockholders from this other bank to trade their shares for Croghan Colonial Bank, then Croghan would become a monopoly in its region and will have a higher net worth as a result of acquiring these new assets.
  4. Reduce expenses by laying off workers and closing branches where it is not necessarily needed. As long as all of the employees who remain employed do not receive pay cuts, this should be able to increase profitability without much effort on behalf of the bank. In addition, eliminating underperforming branches will help lower fixed costs by reducing overhead which will also increase profitability.
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She has a degree in social communication. Theresa is a dynamic, responsable and creative professional. She like the teamwork and project leader to be. She is proactive and likes to learn always.