Platte Valley Bank Named One of the Strongest in Metro

Platte Valley Bank Named One of the Strongest in Metro

For the second time in the past five months, the Kansas City Business Journal has named Platte Valley Bank one of the strongest financial institutions in the Kansas City metropolitan area.

The Business Journal issues a semi-annual report identifying the top five strongest banks in three categories: small, mid-size and large. In a story published on bizjournals.com March 23, Platte Valley Bank was ranked No. 5 in the mid-size category. Platte Valley Bank earned the same ranking in the Business Journal's October, 2014 report. It also earned honorable mention honors earlier in 2014.

"It is an honor and one we are very proud of," Platte Valley Bank Regional President/Co-CEO Doug Gutshall said. "It's a measurement and it basically means we are a safe and sound bank. This is what we all work hard every day for and the numbers tell the story."

The report groups KC metro area banks into three categories: small (less than $250 million in assets), midsize ($250 million to $1 billion in assets) and large (more than $1 billion in assets).

Platte Valley Bank, with current assets of $445 million, was placed in the midsize category.

The Business Journal Report said banks were then graded on several factors that reflect financial strength and stability in such areas as loans and capital. The Business Journal's report said Platte Valley Bank posted especially high marks in the problem loan ratio, core-capital ratio and equity capital categories:

"No. 5: Platte Valley Bank of Missouri had only 0.11 percent problem loans in a $289.7 million portfolio. It made our Top 5 by combining its solid portfolio with an 8.78 percent core-capital ratio and $38.5 million in equity capital. First Option Bank had similar numbers, but Platte Valley Bank's performance came with more than twice the loans."

The Business Journal says problem-loan ratio shows the percentage of loans in a bank's portfolio that are 90 days past due or no longer accruing interest at the stated rate. Core-capital ratio measures the amount of reserves a bank sets aside. Banks are required to hold a minimum of four percent core capital in reserve to be considered well capitalized by regulators. Equity capital is capital set aside that is free of debt and available to be used in the interest of the business.

The top-ranked bank in the mid-size category was Bank of Lee's Summit, which also garnered the top spot in the October 2104 report.

Platte Valley Bank is headquartered in Platte City. It also operates branches in Kansas City North, Parkville, Dearborn, Liberty, Smithville and Plattsburg. Visit them at plattevalleybank.com, on Twitter @PVBank and on Facebook. Member FDIC, Equal Housing Lender.