ABA Banking Journal - May 2009 - (Page 23)

Top 25 by 2008 ROE 2009 2008 Rank Rank Institution Public banks & thrifts with total assets of $3 billion or more; data as of 12/31/08. Rankings of all 145 institutions in this category appear on www.ababj.com Total assets (000) 2008 Noninterest income/ core ROAE total rev Nonperfor. loans/ total lns 2008 ROAE 2008 ROAA P/E ratio Capital ratio Efficiency ratio 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 7 15 10 3 29 11 41 18 27 17 4 23 68 24 26 20 21 1 34 35 6 71 87 Bank of Hawaii Corp., Honolulu, HI (bank) Northern Trust Corp., Chicago, IL (bank) First Financial Bankshares, Abilene, TX (bank) S&T Bancorp, Indiana, PA (bank) Westamerica Bancorp., San Rafael, CA (bank) State Street Corporation, Boston, MA (bank) TrustCo Bank Corp NY, Glenville, NY (thrift) NBT Bancorp, Norwich, NY (bank) CVB Financial Corp., Ontario, CA (bank) International Bancshares Corp., Laredo, TX (bank) Cullen/Frost Bankers, San Antonio, TX (bank) U.S. Bancorp, Minneapolis, MN (bank) FirstMerit Corp., Akron, OH (bank) Republic Bancorp, Louisville, KY (bank) Commerce Bancshares, Kansas City, MO (bank) Glacier Bancorp, Kalispell, MT (bank) BancFirst Corp., Oklahoma City, OK (bank) BB&T Corp., Winston-Salem, NC (bank) TCF Financial Corp., Wayzata, MN (bank) Hancock Holding Co., Gulfport, MS (bank) United Bankshares, Charleston, WV (bank) SVB Financial Group, Santa Clara, CA (bank) Central Bancompany, Jefferson City, MO (bank) UMB Financial Corp., Kansas City, MO (bank) $10,763,475 3,233,303 82,053,600 3,212,385 4,438,368 4,032,934 173,631,000 3,506,813 5,336,088 6,649,651 12,439,341 15,034,142 265,912,000 11,100,026 3,939,368 17,532,447 5,553,970 3,867,204 152,015,000 16,740,357 7,167,254 8,102,091 10,020,892 8,962,338 10,976,596 24.54% 15.96 15.57 15.27 14.77 14.77 14.60 14.28 14.16 13.75 13.34 13.11 13.05 12.76 12.58 11.83 11.63 11.33 11.26 11.22 11.18 11.12 10.93 10.70 10.51 1.84% 1.15 1.09 1.74 1.52 1.42 1.12 1.00 1.11 0.99 1.17 1.51 1.21 1.13 1.04 1.15 1.31 1.17 1.11 0.79 1.02 1.09 1.06 1.25 1.10 21.88% 16.35 13.43 15.07 15.11 23.54 13.67 14.15 13.73 13.75 12.92 13.04 14.28 11.67 16.07 9.92 12.27 9.88 10.36 9.63 10.91 11.90 12.27 NA 9.38 34.22% 17.48 72.17 27.92 21.34 31.70 72.45 15.60 26.76 15.10 35.08 34.84 49.77 33.29 34.30 36.92 24.37 30.75 40.48 43.41 37.40 23.97 32.36 34.19 51.13 13.77x 13.72 8.87 22.26 15.57 18.01 18.21 26.42 15.53 21.25 11.86 14.24 41.68 14.30 NM 18.94 16.40 25.44 13.46 17.08 43.71 21.86 NM NA 25.07 12.49% 15.36 15.36 17.04 11.82 11.76 21.60 13.66 11.00 15.54 16.35 12.58 14.30 11.80 15.43 12.31 15.55 13.78 17.41 14.65 11.22 11.00 17.58 13.67 14.09 54.11% 41.74 69.39 50.39 43.58 39.77 72.04 51.59 54.38 46.78 57.26 57.03 46.74 60.25 56.52 63.84 50.05 65.06 51.03 63.68 61.22 48.03 57.32 58.53 73.17 0.22% 0.76 0.31 0.63 1.19 0.42 0.00 1.54 0.66 0.54 2.80 0.74 1.28 0.70 0.49 0.63 1.56 0.81 1.43 1.29 0.70 0.70 1.54 1.07 0.20 N/A Bank of the Ozarks, Little Rock, AR (bank) Source: SNL Financial LC top 25 is all the more extraordinary. And yet, most of 2008’s top performers generated strong earnings through relatively ordinary banking activities–generating low-cost deposits, making quality loans, and focusing on serving one particular segment extremely well (rather than trying to be all things to all people), all while keeping a sharp eye on noninterest expenses. The similarity between this year’s successful strategies and those used in 2007 is no coincidence. Over half of the institutions in this year’s top 25 are making a repeat appearance. Many of them remain among the top performers due to strategies that they have adhered to for several years, not just the past 12 months. Returning to the core–net interest income Noninterest income may have been essential for reaching the top of the list in 2007; however, in 2008, it was net interest income that mattered. Excluding the more specialized businesses of Northern Trust (#3) and State Street (#7), net interest www.ababj.com/subscribe.htm income accounted for 75% of total revenue at the top 10 institutions and two-thirds of the revenue at this year’s top performer, Bank of Hawaii Corp., Honolulu. At 25.54%, Bank of Hawaii’s 2008 ROAE was 868 basis points higher than that of the second-place bank, Bank of the Ozarks, headquartered in Little Rock, Ark. Bank of Hawaii (BOH) has consistently been a strong performer and has been among the top 5 institutions since 2006. This is the first time that the bank has taken the top spot in our rankings. BOH’s 2008 performance was driven by its ability to execute a fundamental business model well. In January 2007, the bank implemented a new “2007+” strategic plan that focused on maintaining soundness and discipline in “lending, investing, compliance, capital, and liquidity.” BOH shifted from consumer lending to higher-yield commercial lending—all while maintaining a ratio of nonperforming loans to total loans of 0.22%. This growth was funded by the implementation of innovative ABA BANKING JOURNAL/MAY 2009 23 http://www.ababj.com http://www.ababj.com/subscribe.htm

Table of Contents for the Digital Edition of ABA Banking Journal - May 2009

ABA Banking Journal - May 2009
Contents
Editor's Column
Special Briefing on the Mortgage Cleanup
Tackling the "End of the Beginning" of Mortgage Crisis
ABA Resources
ABA Chairman's Position
Banks Wade into Social Media
Pass the Aspirin
Part 1: Banks and Thrifts Over $3 Billion in Assets
Top 25 Ranked, With Key Performance Data
Summary Data for Top 25 and All Institutions Over $3 Billion
Mobile Banking: You're Either In, or You're Out
10 Steps to Defusing Loan-Mod Bombs
Mailbox
Banker's Mart
To Advertise/Index of Advertisers
The Economy

ABA Banking Journal - May 2009

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