ABA Banking Journal - June 2008 - (Page 34)

TOPCOMMUNITYBANKS Ranking Methodology Our ranking assesses the performance of four groups of community financial institutions, defined by size and corporate structure: 1 Non-subchapter S commercial banks, thrifts, and bank holding companies with consolidated total assets less than $100 million. 2 Non-subchapter S commercial banks, thrifts, and bank holding companies with consolidated total assets between $100 million and $3 billion. 3 Subchapter S commercial banks, thrifts, and bank holding companies with consolidated total assets less than $100 million. 4 Subchapter S commercial banks, thrifts, and bank holding companies with consolidated total assets between $100 million and $3 billion. The rankings are based on consolidated statistics for the highest regulatory reporting level available for each institution. Where consolidated statistics were not available but data was reported for a subsidiary that accounted for at least 90% of a holding company’s assets, we used subsidiary data. The rankings focused on institutions that offered traditional banking services; as a result, we have excluded from the analysis bankers’ banks, special purpose industrial loan companies, and nondepository trusts, as well as institutions with less than 10% of their assets in loans, less than 10% of their liabilities in deposits, or over 70% of their loans in credit card receivables. Banking companies that were not in operation for the full year also were excluded. Within the four groups identified, institutions were ranked on their return on average equity (ROAE) for 2007. Data were obtained from SNL Financial, LLC and reflect operations for the year ending Dec. 31, 2007. In cases where certain ratios were not available from SNL but the component data had been reported by the institutions, these ratios were calculated. Restated data were used where applicable. Note on the use of consolidated data We use consolidated data to create our rankings because we believe these data provide the most complete picture of the businesses’ strategies, including those that involve diversification into non-traditional or fee-based businesses for which data may not be captured at the subsidiary level. As a supplement to this article, we also provide rankings of institutions with total assets of less than $3 billion at the charter level (excluding institutions that have total assets of less than $3 billion but are subsidiaries of parents with total assets of more than $3 billion). These rankings (top 100) are available online at www.ababj.com. (See note at right.) Note on the treatment of subchapter S corporations Due to the different tax treatment of Subchapter S corporations (S-corps), these institutions are evaluated separately from non-S corporations with less than $3 billion in total assets. An institution is considered to be a Subchapter S corporation if the highest level reporting institution was a Subchapter S corporation in 2007 and if it held that status for one quarter or more during that year. Over the years, the number of institutions in this group has increased significantly, from 1,216 in 1999 to 2,310 in 2007. Like their non-S counterparts, Subchapter S corporations with total assets of less than $100 million operate differently than the larger institutions in this group. To address this, we have split our S-corp group along the lines of our non-S group: total assets of less than $100 million, and total assets of between $100 million and $3 billion. To accommodate this change, the tables accompanying this article show the top 25 institutions in each group, rather than the top 50. Those interested in seeing the rankings of the top 100, should go to www.ababj.com and click on the heading: “Community banks ranked by ROE—consolidated and by charter” Summary statistics — Top 25 banks and thrifts with < $3 bil. assets Non S-Corps $100 million 2007 2006 Change S-Corps $100 million 2007 2006 Change Financial highlights (average) Return on Average Equity Return on Average Assets Non-Interest Income/Total Revenue Efficienty Ratio (FTE) Leverage Ratio Nonperforming Loans/Total Loans Income and expense ratios (average) Loans/Deposits Interest Income/ Average Assets Interest Expense/ Average Assets Noninterest Income/ Average Assets Noninterest Expense/ Average Assets Net Interest Margin Growth (median) Asset Growth Deposit Growth Loan growth 24.82% 22.69% 2.12% 2.47 2.17 0.30 22.13 16.91 5.22 51.53 55.46 (3.92) 10.44 9.66 0.78 0.83 0.87 (0.04) 27.51% 27.55% (0.03)% 36.37% 36.47% (0.10)% 3.00 2.16 0.83 3.17 2.77 0.40 27.06 17.93 9.13 24.47 21.14 3.33 46.73 46.24 0.49 52.18 52.35 (0.16) 10.70 8.98 1.73 8.83 8.17 0.66 0.96 0.76 0.20 0.54 0.63 (0.09) 41.43% 3.86 21.03 48.64 10.41 2.97 45.00% (3.57)% 4.39 (0.53) 16.07 4.95 41.60 7.04 11.32 (0.91) 1.81 1.16 71.10 7.48 2.62 1.50 3.57 5.24 81.12 7.22 2.20 1.08 3.43 5.45 (10.02) 0.26 0.42 0.42 0.14 (0.21) 98.36 7.45 2.94 3.20 3.33 4.86 95.20 8.15 2.93 1.62 3.36 5.58 3.16 (0.70) 0.01 1.58 (0.03) (0.72) 72.98 7.05 2.45 3.44 4.87 4.95 72.25 6.84 2.21 2.79 4.57 4.93 0.73 0.21 0.24 0.66 0.29 0.02 93.81 8.53 2.73 3.42 4.51 6.03 98.07 8.98 2.86 2.65 3.77 6.33 (4.26) (0.45) (0.13) 0.77 0.74 (0.29) 8.15 7.24 4.86 10.04 10.10 10.52 (1.89) (2.86) (5.66) 4.82 1.32 7.02 18.73 22.66 23.02 (13.91) (21.34) (16.00) 6.50 6.59 4.71 4.94 5.02 5.82 1.56 1.57 (1.11) 5.94 7.97 12.19 12.50 13.89 14.46 (6.56) (5.93) (2.27) 34 JUNE 2008/ABA BANKING JOURNAL http://www.ababj.com http://www.snl.com http://www.ababj.com

Table of Contents Feed for the Digital Edition of ABA Banking Journal - June 2008

ABA Banking Journal - June 2008 Contents Editor’s Column Do Fee-based Services Have an Edge? Snapshot: Net Interest Margins Vary Sharply with Size 100th Anniversary: Then & Now Letters ABA Resources ABA Chairman’s Position "What? No Annual Surprise Bonus?" Pass the Aspirin Cover Story: Top Community Banks: How They Did... ...And How They Did It Charter Bank First East Side Savings Bank Mackinac Financial Corp. The Peoples Bank Managing the E-mail Monster In Brief Handling PEPs in the Age of "L'affaire Spitzer" Mailbox Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - June 2008

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