2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

Figure 1. Average Loan Portfolio Composition

10.0% of the total loan portfolio. Loans secured by residential real estate comprised 48.3%, and commercial properties comprised 46.6% of real estate loans, respectively. The remaining 5.1% were loans secured by farmland. TriStar maintained a similar loan portfolio composition for both real estate and commercial loans over the same five-year period (see Figures 1. and 2). Analysis performed from 2015–2018 found that Nashville, Tennessee, experienced a 5.6% increase in population, “the 10th largest net population growth among affordable large metropolitan areas in the U. S.” (Sullivan). Growth in the Nashville metropolitan area created more opportunities for TriStar to finance 1–4 family residential construction and other construction projects as Nashville’s growth also spilled into adjacent markets (B. Ragan, Meeting, April 14, 2021). In 2017, TriStar experienced 111.0% growth in 1–4 family residential construction loans.

1.56%

Real Estate Agricultural Production Commercial and Industrial Individual Other & Leases

9.84%

9.98%

0.03%

78.59%

Figure 2. Composition of Loans Secured by Real Estate

Agricultural Real Estate 1-4 family Residential Commercial Real Estate

5.10%

456.62%

48.28%

Part I: Financial Analysis of TriStar Bank Loan Portfolio Composition

TriStar also grew its other construction loans 84.0% in 2017 and 57.3% in 2018 (Institutional Reports, FFIEC ). For the five-year period ending in 2020, TriStar focused on financing small business growth, investing time and attention in commercial real estate loans and commercial and industrial loans. TriStar’s commercial real estate loans grew at a rate of 7.3% because of its willingness

As of December 31, 2020, TriStar Bank’s total loan portfolio was $254.7 million and consisted primarily of real estate and commercial loans. From 2015–2020, real estate loans comprised the largest portion averaging 78.6% of the total loan portfolio, and commercial loans averaged

8