Real Estate, Residential Mortgage Lending Fuel Top-Growth Banks in 2013


BRENTWOOD, TENN., April 29, 2014 – Bank Director magazine released the 2014 Growth Leaders Ranking, a ranking of U.S. banks and thrifts across four key growth categories: core revenue; core deposits; net loans and leases; and core noninterest income. Bank Director collaborated with Atlanta-based Bank Intelligence Solutions, a subsidiary of Fiserv Inc., to construct the rankings, based on data from regulatory agency call reports for the first three quarters of 2013. The ranking included both publicly and privately owned banks with assets of $1 billion or more.

Of the four categories, core revenue is the most important because it includes the loan and noninterest income metrics. Customers Bancorp Inc., of Wyomissing, Pennsylvania placed first in the core revenue ranking, driven by growth in residential mortgages, multi-family housing and small business loans. The bank also saw significant growth in noninterest income through the sale of residential mortgage loans. Customers also topped the core revenue category in last year’s ranking.

Ranking second in core revenue is Jacksonville, Florida-based Everbank Financial Corp., a highly efficient institution which largely operates through online and mobile channels with a few financial centers in Florida and loan offices in markets like New York, Chicago, Houston and Los Angeles. The company saw significant growth of revenue from loan sales and fees, as well as its mortgage servicing operation, in the first nine months of 2013, and is highly dependent on the home mortgage market. Everbank ranked fifth in noninterest income.

Privately-held NexBank Capital Inc., based in Dallas, ranked first in core deposits. The bank, with operations in commercial, mortgage and investment banking, as well as an institutional services group, saw increases in its certificates of deposit (CDs), savings account and money market balances. NexBank ranked third in net loans and leases and seventh in core revenue.

Hyde Park Bancorp, of Boston, ranked first in core noninterest income and placed second in net loans and leases. Hyde Park, through its Blue Hills Bank subsidiary, made investments in its consumer banking platform and expanded its commercial real estate and commercial lending operations, resulting in a 37.7 percent loan growth rate through the first nine months of 2013. The company’s first place ranking in core noninterest income resulted largely from a new cash management program targeting business customers and an increase in the sale of residential mortgages to third-party securitizers.

SinoPac Bancorp, a Los Angeles-based subsidiary of SinoPac Holdings in Taiwan, ranked first in net loans and leases due to a modest increase in real estate and commercial and industrial (C&I) lending at its Far East National Bank unit, as well as a substantial increase in loans to other institutions and bankers acceptances used to finance foreign trade transactions.

Many of the highly rated banks took advantage of a strong commercial real estate market in 2013. “The improvement in the commercial real estate sector certainly bodes well for community banks,” says Kevin Tweddle, president of Bank Intelligence Solutions. “The larger banks have focused on growing C&I and small business loans and have left this sector to the community and regional institutions.”

The complete rankings are available on BankDirector.com and in the 2nd quarter 2014 issue of Bank Director. This issue also includes an in-depth exploration of Aubrey Lee Price, the Georgia bank director who has reappeared after claiming he would commit suicide in the fraud and loss of millions of dollars. There also is an article on the lack of diversity on bank boards and a detailed look at the risk practices of banks in Bank Director’s 2014 Risk Practices Survey.

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Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly Bank Director 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 is headquartered in Brentwood, Tennessee.

Source: Bank Director Magazine

Contact: Emily McCormick, director of research, (615) 777-8471(615) 777-8471, emccormick@bankdirector.com