America’s Top 10 Best And Worst Banks of 2014

Posted on Feb 8 2014 - 12:01pm by arslan

The 100 largest publicly traded banks and thrifts on nine measures of financial health: return on average equity; net interest margin; nonperforming loans (NPLs) as a percentage of loans; nonperforming assets as percentage of assets; reserves as a percentage of NPLs; two capital ratios (Tier 1 and risk-based); leverage ratio and revenue growth. All of the data is provided by Charlottesville, Va., financial data provider SNL Financial, except for revenue growth.The ranking of the best and worst banks based on an average of the individual ranks of each metric.

America’s Top 10 Best Banks:

Rank Company Total assets ($bil) Return on avg equity NPLs/total loans Reserves/ NPLs* Tier 1 ratio Leverage ratio
1 Prosperity Bancshares $16 9.3% 0.1% 1,000+% 14.7% 7.4%
2 Signature Bank 21 12.7 0.4 260 14.6 8.7
3 State Street 217 10.0 0.0 1,000+ 17.3 7.2
4 Community Bank System 7 9.3 0.6 186 16.2 9.4
5 Bank of Hawaii 14 14.8 0.7 293 15.4 7.0
6 First Republic Bank 41 12.9 0.2 281 13.1 9.2
7 SVB Financial Group 24 11.0 0.4 328 13.0 8.8
8 BankUnited 14 11.9 0.5 139 24.1 13.1
9 East West Bancorp 24 12.4 0.8 181 12.4 8.7
10 Commerce Bancshares 22 12.0 0.4 339 13.7 9.4

 

1. Prosperity Bank

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Headquarters: Houston, Tex.
Assets: $16 billion
Price/Book value: 1.6
NPLs*/Loans: 0.1%
Reserves/NPLs: >1,000%
Prosperity Bancshares, Inc. is a bank holding company operating in various areas in Texas and central Oklahoma. The company is headquartered in Houston, Texas.

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The company (through its main subsidiary, Prosperity Bank) operates (as of November 1, 2013) 218 branch locations, organized as follows:

57 in the Greater Houston area
20 in South Texas (including Corpus Christi and Victoria)
35 in the Dallas/Fort Worth Metroplex
22 in East Texas
34 in Central Texas (including Austin and San Antonio)
34 in West Texas
10 in the Bryan/College Station area
six in the Central Oklahoma area

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The locations do not include those as part of the following announced planned acquisitions by Prosperity:
F&M Bancorporation, Inc. of Tulsa, Oklahoma, which if completed would add up to 13 locations, ten in the Tulsa area (Prosperity’s first branches in that region) and three in the DFW Metroplex.
This year the U.S. banking industry continued its slow recovery from its nadir in 2010, as banks cleaned up their balance sheets and reduced nonperforming loans and assets. There were only 24 bank failures in 2013, versus 51 last year. Failures peaked at 157 in 2010. The FDIC’s “Problem List” of banks shrank to 515 from 694 a year ago (it was 888 in March 2011).

2. Signature Bank

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Headquarters: New York, N.Y.
Assets: $21 billion
Price/Book value: 1.6
NPLs/Loans: 0.4%
Reserves/NPLs: 260%

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Signature Bank (the Bank) is a full-service commercial bank with 25 private client offices located in the New York metropolitan area serving the needs of privately owned business clients and their owners and senior managers. It offers a variety of business and personal banking products and services through the Bank, as well as investment, brokerage, asset management and insurance products and services through its wholly owned subsidiary, Signature Securities Group Corporation, a licensed broker-dealer and investment adviser. Through Signature Securities, it also purchases, securitizes and sells the guaranteed portions of the United States Small Business Administration (SBA) loans. It offers a variety of deposit, escrow deposit, credit, cash management, investment and insurance products and services to its clients. As of December 31, 2011, the Bank maintained approximately 78,000 deposit accounts, 6,900 investment accounts, 8,600 loan accounts and 14,300 client relationships.

 

3.  State Street

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Headquarters: Boston, Mass.
Assets: $204 billion
Price/Book value: 1.1
NPLs*/Loans: 0.04%
Reserves/NPLs: 431%

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State Street’s financial metrics are strong thanks in part to its role as a custodian bank that services institutional investors worldwide. It does not have the commercial loan book like other large banks. That helped State Street have the lowest ratios for both NPLs and nonperforming assets to total assets among the 100 largest banks.*NPLs: Nonperforming loans include loans 90+ days past due and nonaccrual loans.

On February 28, 2012, SSgA entered into a consent order with the Massachusetts Securities Division “in connection to the Division’s investigation into SSgA in its role as the Investment Manager of a $1.65 billion hybrid collateralized debt obligation named Carina CDO, Ltd.” which resulted in a State-imposed fine of $5 million for the non-disclosure of certain initial investors taking a short position on portions of the Carina CDO. This led to “…a windfall as a result of Carina’s default…through its [a certain initial investor] purchase of approximately $142 million worth of Credit Default Swaps referencing Carina’s notes.
State Street Corporation, or simply State Street, is a U.S.-based financial services holding company. State Street was founded in 1792, and is headquartered in the Financial District area of Boston at One Lincoln Street.State Street has offices in major financial centers throughout the world.

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State Street Bank and Trust Company, a custodian bank, and its subsidiary State Street Global Advisors (SSgA), which is a registered investment advisor, constitute the principal operating companies within parent company State Street Corporation. State Street Bank provides securities services to institutional investors as a custodian bank, Investment Research and Trading and Securities Finance through the Global Markets sleeve (SSgM), and SSgA provides investment management services to mutual funds and other asset managers. State Street customers include mutual funds and their advisers, collective investment funds, corporate and public pension funds, insurance companies, operating companies and non-profit organizations.

 

4. Community Bank System

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Headquarters: Dewitt, N.Y.
Assets: $7 billion
Price/Book value: 1.8
NPLs/Loans: 0.6%
Reserves/NPLs: 186%

A community bank is a depository institution that is typically locally owned and operated. Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. Lending decisions are made by people who understand the local needs of families, businesses and farmers. Employees often reside within the communities they serve.

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In the United States, community banks are defined as independent banks and savings institutions holding companies with aggregate assets less than $1 billion. From 1985 to 2004 they comprised 94% of all banks in the United States, but the proportion of expanding total national deposits that the Community Banks held declined from about 25.89% of all U.S. deposits in 1985 to 13.55% of the U.S. deposits in 2003.Community Bank, N.A. (CBNA), N.A. (National Association), is a commercial bank serving customers in Upstate New York and, under the name First Liberty Bank and Trust (FLB), in Northeastern Pennsylvania. It is the wholly owned national banking subsidiary of Community Bank System, Inc. (CBSI). Community Bank is headquartered in DeWitt, NY, a suburb of Syracuse, NY.

 

5 .Bank of Hawaii

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Headquarters: Honolulu, Hawaii
Assets: $14 billion
Price/Book value: 2.6
NPLs/Loans: 0.7%
Reserves/NPLs: 293%

For the fifth year in a row, Forbes magazine has recognized Bank of Hawaii as one of the top banks in the country. Bank of Hawaii was named #5 among the 100 largest U.S. banks and thrifts.We’re humbled to have achieved this recognition and doubly proud of our dedicated Bank of Hawaii employees who made it possible. But most of all, we’re grateful to have earned the trust and loyalty of over 500,000 of you, the best customers in America. To everyone who helped us achieve this honor again, our most heartfelt mahalo.

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Bank of Hawaii has a longstanding commitment to the communities in which we do business. Together with our employees and retirees, Bank of Hawaii and its Charitable Foundation gave more than $2 million to a wide variety of nonprofit organizations this past year. Employees also regularly give of their time to volunteer for community organizations of their choice, and many serve on boards of directors.Bank of Hawaii and its employees and retirees are significant, longtime contributors to The United Way on Oahu, Maui, Hawaii Island, and Kauai. Together they donated more than $800,000 in 2009.Over the years, Bank of Hawaii activities in investing in the communities we serve have consistently earned an “Outstanding” Community Reinvestment Act (CRA) rating from the Federal Reserve Bank.

 

6. First Republic Bank

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Headquarters: San Francisco, Calif.
Assets: $41 billion
Price/Book value: 2.2
NPLs/Loans: 0.2%
Reserves/NPLs: 281%

 

7. SVB Financial Group

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Headquarters: Santa Clara, Calif.
Assets: $24 billion
Price/Book value: 2.4
NPLs/Loans: 0.4%
Reserves/NPLs: 328%

 

8. BankUnited

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Headquarters: Miami Lakes, Fla.
Assets: $14 billion
Price/Book value: 1.7
NPLs/Loans: 0.5%
Reserves/NPLs: 139%

 

9. East West Bancorp

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Headquarters: Pasadena, Calif.
Assets: $24 billion
Price/Book value: 2.0
NPLs/Loans: 0.8%
Reserves/NPLs: 181%

10. Commerce Bancshares

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Headquarters: Kansas City, Mo.
Assets: $22 billion
Price/Book value: 2.0
NPLs/Loans: 0.4%
Reserves/NPLs: 339%

                              America’s Top 10 Worst  Banks:

1. First Commonwealth Financial

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Headquarters: Indiana, Pa.
Assets: $6 billion
Price/Book value: 1.2
NPLs/Loans: 1.4%
Reserves/NPLs: 90%

 

2. First BanCorp

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Headquarters: San Juan, P.R.
Assets: $13 billion
Price/Book value: 1.0
NPLs/Loans: 6.4%
Reserves/NPLs: 45%

3. Synovus Financial

0x614
Headquarters: Columbus, Ga.
Assets: $26 billion
Price/Book value: 1.2
NPLs/Loans: 2.3%
Reserves/NPLs: 69%

4. Regions Financial

0x615
Headquarters: Birmingham, Ala.
Assets: $117 billion
Price/Book value: 0.9
NPLs/Loans: 2.2%
Reserves/NPLs: 93%

5. Bank of America

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Headquarters: Charlotte, N.C.
Assets: $2.1 trillion
Price/Book value: 0.7
NPLs/Loans: 2.9%
Reserves/NPLs: 69%

6. People’s United Financial

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Headquarters: Bridgeport, Conn.
Assets: $31 billion
Price/Book value: 1.0
NPLs/Loans: 1.6%
Reserves/NPLs: 49%

7.  Astoria Financial

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Headquarters: Lake Success, N.Y.
Assets: $16 billion
Price/Book value: 1.0
NPLs/Loans: 2.8%
Reserves/NPLs: 41%

8. Hudson City Bancorp

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Headquarters: Paramus, N.J.
Assets: $39 billion
Price/Book value: 1.0
NPLs/Loans: 3.8%
Reserves/NPLs: 31%

9. First Horizon National

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Headquarters: Memphis, Tenn.
Assets: $13 billion
Price/Book value: 1.3
NPLs/Loans: 3.0%
Reserves/NPLs: 54%

10. Doral Financi

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Headquarters: San Juan, P.R.
Assets: $9 billion
Price/Book value: 0.2
NPLs/Loans: 11.3%
Reserves/NPLs: 15%

 

 

 

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