America?s Top Banks

In general, the banking sector is healthier. While some banks are struggling, many banks have seen improvements in operations. The following outstanding banks are chosen as based on eight measures on financial health including net interest margin, return on average equity, nonperforming loans, and reserves as a percentage of NPLs.

 

First Citizens BancShares operates two subsidiaries, First Citizens Bank and IronStone Bank. With $ 21 billion in assets, it is the 46th largest bank holding company in the United States. Its shares trade at a multiple of 1.1 times its book value.

 

NPLs/ Loans: 1.6% 

Reserves/ NPLs: 97%

 

Although Community Bank System has $ 5.5 billion in assets, its nonperforming loans are very low at 0.6%. This small holding company wholly owns five subsidiaries namely First of Jermyn Realty Company, Community Bank, N.A. (the Bank), CFSI Closeout Corp. (CFSICC), Inc. (FJRC), Benefit Plans Administrative Services, Inc. (BPAS), and Town & Country Agency LLC (T&C).

 

Price/ Book: 1.4 

Reserves/ NPLs: 220%

 

Bank of Hawaii is headquartered in Honolulu, Hawaii. The bank has $ 12.7 billion in assets. The stock of its trades for 2.2 times its book value. During the housing bubble, the bank was cautious in its underwriting strategy. Its conservativeness helped minimize the bad loans on its book today.

 

NPLs/ Loans: 0.9% 

Reserves/ NPLs: 296%

 

Based in Silicon Valley, SVB Financial Group provides commercial banking and financial services and products including money market accounts, certificates of deposit, sweep accounts, and checking accounts.

 

Assets: $ 15.7 billion

Price/ Book: 1.7

 NPLs/ Loans: 0.9% 

Reserves/ NPLs: 165%

 

East West BanCorp is headquartered in Pasadena, California. This largest bank based in Southern California mainly serves the Asian-American community. Its assets have rose 64% over the past year.

 

Price/ Book: 1.4 

NPLs/ Loans: 1.3% 

Reserves/ NPLs: 136%

 

IberiaBank’s shares trade at a multiple of 1.2 times its book value.

 

Assets: $ 10.6 billion

 NPLs/ Loans: 0.8%

 Reserves/ NPLs: 277%

 

Signature Bank, whose stock increases 51% over the past year, offers personal and business clients a single point of contact to meet all their financial needs.

 

Price/ Book: 2.1

NPLs/ Loans: 0.9%

 Reserves/ NPLs: 144%

 



 

Related links:

First Citizens BancShares, Inc.

Strategies and Best Practices of U S Community Banks

SVB Financial Group (SIVB)

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