Bank Performance Improved in 2012

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BRENTWOOD, TENN., August 8, 2013 – Bank Director magazine has released its 2013 Bank Performance Scorecard, listing the top performing publicly traded banks across the nation, categorized by size: Big banks, with more than $50 billion in assets; mid-sized banks, with between $5 billion and $50 billion in assets; and community banks, with between $1 billion and $5 billion in assets. The results are based on 2012 calendar year performance data.

As a group, the 289 banks included in the 2013 Scorecard performed better than those in the 2012 ranking, with median values rising overall in the five performance metrics: profitability measured by core return on average assets and core return on average equity; capital strength measured by the ratio of tangible common equity to tangible assets; and asset quality indicated by the ratio of nonperforming assets to total loans, and the ratio of net charge-offs to average loans. The 2013 Bank Performance Scorecard rewards banks that are well-balanced across all three categories, and banks that rank highly typically do well in all five of the metrics, not just one or two.

The complete rankings are available online in the digital edition of Bank Director magazine

The top performing banks this year are:

Huntington Bancshares Inc. (HBAN), headquartered in Columbus, Ohio, tops the ranking of big banks, improving upon its second place finish last year to edge out Buffalo, New York-based M&T Bank Corp. for top honors. Huntington’s strong performance is a result of a strong net interest margin, excellent loan growth and 8 percent growth in core deposits in 2012.  

BankUnited Inc. (BKU), based in Miami Lakes, Florida, ranks first among mid-sized banks. After negotiating one of the best acquisitions of a failed bank to come out of the financial crisis, BankUnited’s management team has aggressively grown its loan portfolio, largely in commercial lending, as the South Florida economy rebounded. The bank has also improved its deposit base, with core deposit growth of 35 percent since its acquisition four years ago.

Bank of the Ozarks Inc. (OZRK), of Little Rock, Arkansas, ranks first in the community bank category. FDIC-assisted deals that allowed the bank to expand into Florida, Alabama, Georgia, and North and South Carolina helped drive earnings in recent years, which in turn factored into sustained profitability and a high net interest margin. 

Driven by low interest rates, refinancing and a gradual recovery in housing prices, mortgage banking was a boom to many publicly owned institutions. “Mortgage banking had a particularly banner year,” says Mark Fitzgibbon, a principal and director of research at Sandler O’Neill + Partners, which performed the data analysis for the Scorecard. 

The complete results of the Bank Performance Scorecard are available in print and online in the 3rd quarter 2013 issue of Bank Director, which also includes results of the 2013 Compensation Survey.

Please note: Due to a data entry error, the final ranking results in the $1 billion to $5 billion asset category were stated incorrectly in the print version of Bank Director magazine. The correct ranking table can be found in the online version of the magazine at www.bankdirector.com.

Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly magazine, executive-level research, annual conferences, and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director magazine is published by DirectorCorps, and headquartered in Brentwood, Tennessee.

Source: Bank Director magazine

Contact: Emily McCormick, director of research, (615) 777-8471 or [email protected]

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