Nov 13, 2019

Forbes - America's Best And Worst Banks 2010

Published Jan 6, 2010, 3:15pm
America's Best And Worst Banks 2010

News brought to you by:
InfoKwik Web Design, Marketing & Hosting Kansas City



Forbes.com Wall Street

America's Best And Worst Banks

Kurt Badenhausen, 12.30.09, 7:00 PM ET


With Bank of America and Citigroup buoying their balance sheets and repaying billions of dollars in taxpayer bailout funds, the casual observer might assume the banking crisis is just about over. The casual observer would be wrong.

Busted banks are still keeping the Federal Deposit Insurance Corp. busy. In the past two months, 41 went under, surpassing the total of 26 for all of 2008. What's more, by some measures bank balance sheets are in worse shape today than they were at the height of the financial crisis. Nonperforming loans represented 3.4% of loans outstanding among big banks in the most recent quarter, compared with 1.5% a year earlier. Nonperforming assets were 2.4% in the latest quarter compared to 1.2% a year earlier.

When IndyMac Bancorp went bust in July 2008 with $32 billion of assets, it was the fourth-largest bank failure ever. It reported capital ratios of 9% (Tier 1) and 10.3% (risk-based) in its most recent quarter before its demise. Its non-performing loans (NPLs) as a percentage of loans was 9.2% while non-performing assets (NPAs) made up 6.5% of total assets. There are big banks today with worse ratios than this.

To drill a little deeper into the health of the 100 largest banks and thrifts, Forbes turned to researchers at SNL Financial. The Charlottesville, Va.-based firm looked at eight financial measures including return on average equity, net interest margin, NPLs as a percentage of loans, NPAs as percentage of assets, reserves as a percentage of NPLs, two capital ratios (Tier 1 and risk-based) and leverage ratio. The size of the banks SNL looked at range from Harleysville National, with assets of $5.2 billion, to behemoth Bank of America, with $2.3 trillion of assets.

We ranked the 100 banks on each metric and added up the individual ranks. Our top-ranked bank is Honolulu's Bank of Hawaii with assets of $12.2 billion. "Boring is good," says its chief executive, Allan Landon.

Landon credits the bank's strong performance to its starchy balance sheet and a focus on risk-adjusted performance. When the housing market heated up earlier this decade, Bank of Hawaii stayed very conservative in its underwriting strategy, which helped minimize its bad loans today. Non-performing loans were only 1.2% of total loans in the latest quarter, eighth best among the 100 largest banks. The bank scores third best in terms of reserves as a percentage of NPLs, with more than twice as many reserves as bad loans.

Bank of Hawaii also declined to take money from the federal government's TARP program. Many banks that received TARP money had to raise capital by issuing shares, but this has been dilutive to current shareholders in most cases. "Our governing objective is to maximize shareholder value," says Landon. That's a cliche coming from most chief executives, but one that a lot of bankers seemed to have forgotten of late. Landon says the bank devotes 90% of earnings to dividends and share buybacks, and has maintained its 45 cent quarterly dividend throughout the financial crisis. Wall Street recognizes the strength of Bank of Hawaii as the stock at a recent $48 trades at 2.5 times its book value. It is the highest ratio of any of the 100 largest banks. "Long may it continue," says Landon.

Wall Street has caught on to many of the banks at the bottom of our list. At 1.1 times book value, Harleysville is the only bank in the bottom 10 that trades at more than half its book value. Seven of the 10 have seen their stock price decline at least 50% over the past 12 months.

One bank near the bottom that is looking to revive its fortunes is Lansing, Mich.-based Capitol Bancorp.. The bank has a presence in 17 states, but has been badly hurt by the severe economic problems of its home state. Its capital ratios of 8.4% (Tier 1) and 11.2% (risk-based) are both sixth worst among the 100 largest banks. The bank is divesting businesses in six states, including problem areas like California and Ohio to boost its capital ratios and improve its balance sheet.

Capitol Bancorp and other banks looking to rebound might want to give Landon a call. He says that down in Hawaii they sell "sunshine and a smile."

In Pictures: Best Banks

In Pictures: Worst Banks

Full List: America's Best And Worst Banks

Read Full Story: America's Best And Worst Banks

OVERALL RANK

COMPANY

TOTAL ASSETS ($BIL)

NPLS/ LOANS %

RESERVES/ NPLS

%

TIERĀ 1 RATIO

%

1

Bank of Hawaii

12

1.2

209

13.4

2

UMB Financial

10

0.7

210

13.5

3

Commerce Bancshares

18

1.6

114

12.8

4

Prosperity Bancshares

9

0.3

537

11.9

5

SVB Financial

13

1.6

120

14.6

6

CVB Financial

7

1.6

150

15.3

7

Community Bank System

5

0.5

249

12.1

8

Central Bancompany

9

1.7

110

13.1

9

NBT Bancorp

5

1.1

165

11.2

10

International Bancshares

12

2.2

71

17.2

11

People's United Financial

19

1.4

82

12.8

12

First Citizens BancShares

19

1.4

92

13.3

13

Hudson City Bancorp

59

1.7

22

20.7

14

Hancock Holding

7

1

147

11.1

15

NewAlliance Bancshares

9

1

105

19.9

16

Northern Trust

78

1.1

99

13.3

17

Signature Bank

9

1.5

76

14.5

18

Old National Bancorp

8

1.9

91

14.1

19

Umpqua Holdings

9

2.1

80

16.4

20

FirstMerit

11

1.5

110

11.4

21

Capital One Financial

169

3.3

139

11.9

22

Capitol Federal Financial

8

0.5

21

23.2

23

Northwest Bancorp

7

2.2

58

12.7

24

BancorpSouth

13

1.1

137

11.4

25

Valley National Bancorp

14

1

106

10.8

26

East West Bancorp

12

2.5

112

13.1

27

United Bankshares

8

1.2

95

10.7

28

Trustmark

9

2.8

57

14.1

29

City National

18

3.4

63

12.3

30

Oriental Financial

6

7.9

22

15.8

31

National Penn Bancshares

10

1.9

106

12.5

32

Comerica

60

3.1

70

12.2

33

First Niagara Financial

14

0.9

124

10.9

34

F.N.B.

9

2.4

76

11.5

35

WesBanco

6

2.1

81

11

36

Investors Bancorp

8

1.8

46

15.7

37

Glacier Bancorp

6

4.7

66

14.4

38

Fifth Third Bancorp

111

5.4

85

13.2

39

Cullen/Frost Bankers

16

2.6

55

11.5

40

Provident Financial Svcs

7

1.8

71

12.3

41

Park National

7

4.6

52

11.9

42

Washington Federal

13

3.6

18

20.8

43

Santander BanCorp

7

4.7

74

10.1

44

First Financial Bancorp

7

5

23

16.2

45

BB&T

165

3.8

58

11.1

46

Fulton Financial

17

2.3

83

11.6

47

Bank of America

2,253

5.8

64

12.5

48

Boston Private Financial

6

2.3

73

17.7

49

Iberiabank

6

2.9

38

15.2

50

KeyCorp

97

4.5

88

12.6

51

Texas Capital Bancshares

5

1.9

71

11.2

52

PacWest Bancorp

5

4.3

59

14.3

53

New York Community Bancorp

33

2

23

11.6

54

Susquehanna Bancshares

14

2.7

64

11.1

55

State Street

163

2.3

20

15.3

56

BOK Financial

24

3.5

69

10.6

57

Citigroup

1,889

6.6

84

12.8

58

TFS Financial

11

2.5

30

17.3

59

Webster Financial

18

3.2

89

11.8

60

PNC Financial Services

271

6.5

45

10.9

61

First Citizens Bancorp

8

5.8

25

10.4

62

First Midwest Bancorp

8

5

51

12.9

63

Bank of New York Mellon

212

3.4

44

11.4

64

First National of Nebraska

15

4.7

89

9

65

First Horizon National

26

6.8

73

16.2

66

Wells Fargo

1,229

6.6

44

10.6

67

TCF Financial

18

2.3

66

8.6

68

Associated Banc

23

6

47

13.1

69

U.S. Bancorp

265

4.1

62

9.5

70

Wintrust Financial

12

2.7

41

9

71

Whitney Holding

12

5

57

10.6

72

Regions Financial

140

4.5

62

12.2

72

Western Alliance Bancorp

6

4.3

61

12.1

74

MB Financial

14

5.6

52

13.8

75

M&T Bank

69

2.7

62

8.4

76

SunTrust Banks

173

5.7

43

12.6

77

First Commonwealth Financial

7

3.2

60

10.3

78

United Community Banks

8

5.7

48

13.2

79

Huntington Bancshares

53

6.4

43

13

80

South Financial

12

4.9

77

11.2

81

Cathay General Bancorp

12

5.3

50

12.6

82

JPMorgan Chase

2,041

6.8

68

10.2

83

Astoria Financial

21

2.6

42

11.5

84

Citizens Republic Bancorp

12

6.6

63

12.8

85

PrivateBancorp

12

3.8

54

11

86

Synovus Financial

35

6.1

57

10.5

87

Marshall & Ilsley

59

4.9

62

9.6

88

Zions Bancorp

53

5.8

59

10

89

Wilmington Trust

11

4.4

36

10

90

FirstFed Financial

6

6.9

62

7.6

91

First BanCorp

20

12.8

25

12.5

92

Central Pacific Financial

5

12.1

48

10.9

93

Pacific Capital Bancorp

8

6.4

78

7.8

94

Harleysville National

5

4.7

51

8.3

95

Popular

36

9.5

52

10.2

96

Capitol Bancorp

5

6.7

45

8.4

97

Sterling Financial

12

8.6

38

9.5

98

R & G Financial

7

20.6

12

4

99

W Holding

13

16.9

15

10.1

100

Flagstar Bancorp

15

8.9

38

10.8

NPLs: Nonperforming loans include loans 90+ days past due and nonaccrual loans.

Source: SNL Financial





Online News Association Professional Member
InfoKwik KC News is a Professional Member

Custom KC News Search





Advertise on this site




Tags: , , , bank crisis

Comments

1 comment(s) on this page. Add your own comment below.

Feb 9, 2010 1:01am [ 1 ]

Last year with so many bank failures, people are apprehensive about opening accounts with banks. Some banks have survived the crisis while others have simply given in to the economic pressure. By predicting the success or failure of a bank we can think of making investments.

Add a Comment

Please be civil.

(Use Markdown for formatting.)

This question helps prevent spam:

Browse more...

News

Announcement

Find a Job
Keywords:
Location:
Job category:

Search This Site
Search this site or any KC Web Guide

Got Feedback?
Send a letter to the editor.

Subscribe
Sign up for the Free E-Newsletter.
Also receive updates automatically in your email.

Advertise
Promote your brand at KCWebGuides.com.

Class...

"Class is an aura of confidence that is being sure without being
cocky. Class has nothing to do with money. Class never runs scared.
It is self-discipline and self-knowledge. It's the sure footedness
that comes with having proved you can meet life."

*Ann Landers

More Quotes

Subscribe