Nifty 50: The Best Users of Capital in Banking
Upcoming SlideShare
Loading in...5
×
 

Nifty 50: The Best Users of Capital in Banking

on

  • 1,061 views

Bank Director’s Nifty 50 The top 50 best users of capital.

Bank Director’s Nifty 50 The top 50 best users of capital.

Statistics

Views

Total Views
1,061
Views on SlideShare
759
Embed Views
302

Actions

Likes
0
Downloads
10
Comments
0

1 Embed 302

http://www.bankdirector.com 302

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Nifty 50: The Best Users of Capital in Banking Nifty 50: The Best Users of Capital in Banking Presentation Transcript

  • Bank Director’s Nifty 50 The top 50 best users of capital
  • Bank Director’s Nifty 50Bank Director magazine went hunting for banksthat deliver high returns, despite high levels ofcapital.In an age when regulators are demanding highercapital, which tends to produce lower earnings,this can be extremely hard to do.
  • Bank Director’s Nifty 50Investment firm Sandler O’Neill + Partnerscompiled this list from the 484 banks and thriftslisted on the NYSE, NYSE Amex and NASDAQOMX stock exchanges, using core return ontangible common equity and the ratio ofaverage tangible common equity to tangibleassets. View slide
  • Steve Trager, CEO Republic Bancorp, Inc.The winner of the Nifty 50 was Republic Bancorp Inc., a Louisville, Kentucky-based bank holding company with $3 billion in assets.Republic Bancorp looks for non-traditional product opportunities where returns are higher. It isthe largest processor of income tax returns in the country. The FDIC forced it to scale back theproduct after 2012–citing riskiness. View slide
  • Scott Dueser, chairman andCEO of First FinancialFirst Financial Bankshares Inc., based in Abilene, Texas, was the secondranked best user of capital.“Our board’s approach has always been to maintain high levels of capital because capital is whatgot us through the hard times,’’ says F. Scott Dueser, chairman and CEO of the $3.8-billion assetholding company.
  • Bank Director’s Nifty 50Like Republic, First Financial invests most of its earnings back into the company, rather than paying high dividends.
  • Bank Director’s Nifty 50National Bankshares Inc. in Blacksburg, Virginia,was the third best user of capital.Commercial National Financial Corp. in Latrobe,Pennsylvania, was no. 4 on the ranking.
  • Joe Evans, chairman & CEOof State Bank Financial Corp.State Bank Financial Corp. in Atlanta was the 5th best user of capital.Joe Evans and his team sold Atlanta-based Flag Financial Corp. in 2006 and were in a position tobuy another bank in 2009 in an FDIC-assisted transaction. State Bank was born. It soon acquiredfive other failed banks.
  • Comparison of Top 5 Banks 25 20 15 10 5 0 Republic First Financial National Commercial State Bank Bancorp Bankshares National Financial Financial Core ROTCE Average TCE/TA* Core ROTCE is return on tangible common equity and based on core income as defined by SNL Financial and average TCEfor eight quarters ending June 30, 2011. Average TCE/TA is tangible common equity to tangible assets and represents theaverage for eight quarters ending June 30, 2011.Source: SNL Financial and Sandler ONeill + Partners
  • Bank Director’s Nifty 50 Mark Fitzgibbon, director of research at Sandler O’Neill + Partners, says most of the top ranked banks are located in smaller, urban markets where business conditions are probably better.
  • Bank Director’s Nifty 50Another similarity is lowexpense ratios, attractive netinterest margins–a reflectionprobably of pricingadvantages compared tobanks in more competitivemarkets–and low creditcosts, which suggests the top Mark Fitzgibbon, director of research at Sandler O’Neill + Partnersranked banks and thrifts arebetter lenders.
  • Bank Director’s Nifty 50 Check out the full Nifty 50 ranking here, where it appeared in Bank Director magazine’s 1st quarter issue.