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America’s Best Banks 2017 | Forbes

For the eighth straight year, Forbes has come up with a list of America’s Best Banks. They ranked the 100 largest banks and thrifts by assets based on the following methodology:

We ranked the banks based on 10 metrics related to growth, profitability, capital adequacy and asset quality. Metrics include return on average tangible equity, return on average assets, net interest margin, efficiency ratio and net charge-offs as a percent of total loans. We also factored in nonperforming assets as a percent of assets, risk-based capital ratio and reserves as a percent of nonperforming assets (we previously compared reserves to nonperforming loans).

We tweaked two of the metrics this year with 12-month operating revenue growth replacing total revenue growth, which includes gains on sale of securities and can be volatile, according to S&P Global Market Intelligence analyst Robert Clark. CET1 ratio replaces the Tier 1 common capital ratio under the U.S. Basel III revised regulatory capital rules. All data is based on regulatory filings for the period ending Sept. 30. Each of the 10 metrics are weighted equally in the final rankings.

They discuss what has been going on in the banking industry in their article about the rankings. Some things that stood out in their review of the bank industry are:
  • There have been only 13 bank failures the past two years, compared to 297 during 2009 and 2010.
  • The FDIC’s Problem Bank List reached 884 in 2010, but was only 132 as of September.
  • Banks have mostly recovered from the late 2000s financial crisis after a multitude of asset write-downs, settlements and fines.
  • Banks are healthier than they have been in a decade, but there is still a wide variance in the financial condition of the largest financial institutions.
  • The four biggest banks in the U.S. have a combined $8.5 trillion in assets, or nearly $4 trillion more than the combined total of the next 100 biggest banks and thrifts. Yet, none of the Big Four could crack the top 50 of America’s Best Banks thanks to low net interest margins, weak revenue growth and high levels of net charge-offs as a percent of loans. JPMorgan Chase was the best performer at No. 57. Wells had the biggest drop of the Big Four, down 11 spots.
  • Some banks really jumped up in the rankings. For example, First National Bank of Nebraska was #36 last year and is #16 this year.

For their article about “America’s Best Banks 2017”, click here. For the article about their methodology and the full list showing each bank’s assets, return on equity and other financial details, click here.

As you look at this list, remember it is not based on what consumers think of the banks. This is based on their financial strengths. Now, without further ado, here is Forbes list of “America’s Best Banks 2017”

  1. PacWest Bankcorp
  2. CVB Financial (holding company for Citizens Business Bank)
  3. Community Bank System
  4. Western Alliance Bancorp
  5. Glacier Bancshares
  6. First Republic Bank
  7. Bank of Hawaii
  8. Home BancShares
  9. Prosperity Bancshares
  10. FCB Financial Holdings
  11. Bank of the Ozarks
  12. First Hawaiian
  13. South State
  14. Capital One Financial
  15. East West Bancorp
  16. First National of Nebraska
  17. Central Banco.
  18. Cullen/Frost Bankers
  19. Cathay General Bancorp
  20. LegacyTexas Financial
  21. Investors Bankcorp
  22. Signature Bank
  23. Hope Bancorp
  24. Pinnacle Financial Partners
  25. Renasant
  26. WesBanco
  27. First Financial Bancorp
  28. Umpqua Holdings
  29. Banner
  30. Columbia Banking System
  31. Washington Federal
  32. Commerce Bancshares
  33. First Interstate BancSystem
  34. Hilltop Holdings
  35. Customers Bancorp
  36. Sterling Bancorp
  37. State Street
  38. Simmons First National
  39. PrivateBancorp
  40. SVB Financial Group
  41. BankUnited
  42. BB&T
  43. M&T Bank
  44. Heartland Financial USA
  45. Provident Financial Svcs
  46. International Bancshares
  47. MB Financial
  48. Capitol Federal Financial
  49. Great Western Bancorp
  50. Banc of California
  51. Flagstar Bancorp
  52. United Bankshares
  53. Union Bankshares
  54. Fifth Third Bancorp
  55. Northern Trust
  56. BancorpSouth
  57. JPMorgan Chase
  58. U.S. Bancorp
  59. Old National Bancorp
  60. United Community Banks
  61. Berkshire Hills Bancorp
  62. F.N.B
  63. Wells Fargo
  64. NBT Bancorp
  65. First Midwest Bancorp
  66. Chemical Financial
  67. Bank of New York Mellon
  68. Wintrust Financial
  69. UMB Financial
  70. Trustmark
  71. Popular
  72. Citigroup
  73. PNC Financial Services
  74. First Citizens BancShares
  75. Northwest Bancshares
  76. IBERIABANK
  77. Zions Bancorp.
  78. TFS Financial
  79. Fulton Financial
  80. TCF Financial
  81. Webster Financial
  82. BOK Financial
  83. Texas Capital Bancshares
  84. First BanCorp.
  85. Regions Financial
  86. People’s United Financial
  87. Citizens Financial Group
  88. New York Comm. Bancorp
  89. Synovus Financial
  90. Astoria Financial
  91. Huntington Bancshares
  92. KeyCorp
  93. SunTrust Banks
  94. Valley National Bancorp
  95. Comerica
  96. First Horizon National
  97. Bank of America
  98. EverBank Financial
  99. Hancock Holding
  100. Associated Banc-Corp

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Written by Lisa Jennings

Lisa has been helping people create budgets and get their bank accounts in order for over 15 years. As a conference speaker and presenter at financial events, Lisa enjoys helping people get their finances under control. You can reach her at lisa@bankscoop.com.

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