3 Key Metrics For Every CCC Bank, Part 3 - Challengers Edition

|
Includes: ANCX, ATLO, BBT, BK, BKSC, BLX, BMTC, CFFI, CFNL, CLDB, CMA, CMOH, COLB, CVLY, EMCF, EVBN, EWBC, FCBI, FDEF, FFIN, FIBK, FISI, FITB, FMBH, FNBG, FXCB, GRRB, HBAN, HBNC, HFWA, HIFS, HOMB, IBOC, INDB, ISBC, JPM, KEY, LBAI, LTXB, MBWM, MLGF, MNRK, MOFG, MSFG, OCBI, ONB, PACW, PCBK, PCLB, PFS, PNBI, PNC, PROV, QNBC, QNTO, SASR, SSB, STI, STT, SYBT, TBNK, UBOH, UBSH, UMPQ, USB, WAFD, WASH, WAYN, WBS, WFC, WMPN, WSBC, WTBA
by: Charles Gooch, Jr.

Summary

Net interest margin, efficiency ratio, and Return on Equity are three key metrics to analyze banks.

Though not exhaustive, these metrics are highly important in comparative analysis.

Three key metrics for every CCC Challenger.

For those investors who happen to be shopping for banks, there are a number of metrics one is to look for in comparing prospective investment opportunities. In Part 1 of this three part series, I talked about how the three key metrics of net interest margin, efficiency ratio and return-on-net-worth (or return on equity) - though not exclusively what one should examine, can get the DIY investor far down the road in their analysis.

For brevity's sake, I will not rehash these metrics as they were defined previously. The balance of this article is simply to provide them for all the banks on the Challengers tab of David Fish's CCC list.

What follows is data from the last complete year given, pulled from the company's own filings for the overwhelming majority of cases. However, there were a few (Malaga Financial Corporation (OTCPK:MLGF), for instance) which needed to be pulled from other sources - usually FDIC call data.

One final caveat - the basic equation was used (Net Interest Margin = net interest income / total average-earning assets; Efficiency Ratio = noninterest expense / revenue; Return on Net-Worth = net income / shareholders' equity). No attempt was made to peruse footnote data or non-GAAP measures to reconcile what they reported vs. the basic equation results.

Bank Name (Symbol) NIM Efficiency Ratio ROE
Access National Corporation (NASDAQ:ANCX) 3.68% 60.04% 14.13%
Ames National Corporation (NASDAQ:ATLO) 3.02% 49.81% 9.31%
Banco Latinoamericano De Comercio Exterior SA (NYSE:BLX) 1.81% 21.01% 12.35%
Bank of New York Mellon Corp. (NYSE:BK) 0.89% 71.07% 8.47%
Bank of South Carolina Corp. (NASDAQ:BKSC) 3.52% 55.06% 12.48%
Branch Banking & Trust Corp. (NYSE:BBT) 3.32% 59.72% 7.77%
Bryn Mawr Bank Corp. (NASDAQ:BMTC) 3.63% 76.45% 4.58%
C&F Financial Corp. (NASDAQ:CFFI) 6.18% 61.41% 9.87%
Cardinal Financial Corp. (NASDAQ:CFNL) 3.32% 49.85% 11.76%
Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) 3.71% 57.54% 8.94%
Columbia Banking System, Inc. (NASDAQ:COLB) 4.23% 63.31% 7.93%
Comerica, Inc. (NYSE:CMA) 2.53% 65% 6.89%
Commercial Bancshares, Inc. (OTCQX:CMOH) 4.42% 64.23% 9.48%
Cortland Bancorp (OTCQX:CLDB) 3.49% 65.39% 7.72%
East West Bancorp (NASDAQ:EWBC) 3.35% 43.72% 12.74%
Emclaire Financial Corporation (NASDAQ:EMCF) 3.20% 65.51% 7.89%
Evans Bancorp, Inc. (NYSEMKT:EVBN) 3.64% 66.26% 8.59%
Fifth Third Bancorp (NASDAQ:FITB) 2.88% 54.46% 10.75%
Financial Institutions, Inc. (NASDAQ:FISI) 3.18% 58.47% 9.78%
First Defiance Financial Corp. (NASDAQ:FDEF) 3.70% 60.27% 9.43%
First Financial Bankshares, Inc. (NASDAQ:FFIN) 3.73% 50.66% 13.60%
First Interstate Bancsystem, Inc. (NASDAQ:FIBK) 3.41% 61.49% 9.37%
First Mid-Illinois Bancshares, Inc. (NASDAQ:FMBH) 3.28% 61.94% 7.66%
FNB Bancorp (OTCQB:FNBG) 3.97% 68.36% 8.15%
Fox Chase Bancorp, Inc. (NASDAQ:FXCB) 3.23% 56.61% 5.40%
Frederick County Bancorp, Inc. (OTCPK:FCBI) 3.45% 70.05% 7.12%
GrandSouth Bancorp (OTCQB:GRRB) 6.24% 54.91% 14.06%
Heritage Financial Corp. (NASDAQ:HFWA) 3.94% 63.22% 7.98%
Hingham Institution for Savings (NASDAQ:HIFS) 3.35% 31.96% 14.66%
Home BancShares, Inc. (NASDAQ:HOMB) 4.87% 40.09% 12.77%
Horizon Bancorp (NASDAQ:HBNC) 3.45% 62.35% 9.36%
Huntington Bancshares, Inc. (NASDAQ:HBAN) 3.15% 62.66% 10.51%
Independent Bancorp MA (NASDAQ:INDB) 3.39% 63.30% 8.42%
International Bancshares, Inc. (NASDAQ:IBOC) 3.32% 50.12% 8.44%
Investors Bancorp (NASDAQ:ISBC) 3.12% 42.54% 5.26%
JPMorgan & Chase Co. (NYSE:JPM) 2.03% 58.43% 9.87%
KeyCorp (NYSE:KEY) 2.80% 63.08% 8.31%
Lakeland Bancorp, Inc. (NASDAQ:LBAI) 3.44% 56.27% 8.28%
LegacyTexas Financial Group, Inc. (NASDAQ:LTXB) 4% 49.29% 9.12%
MainSource Financial Group, Inc. (NASDAQ:MSFG) 3.49% 65.43% 9.56%
Malaga Financial Corp. 3.25% 29.39% 9.21%
Mercantile Bank Corp. (NASDAQ:MBWM) 3.81% 61.84% 8.19%
MidWest One Financial Group, Inc. (NASDAQ:MOFG) 3.54% 60.03% 9.84%
Monarch Financial Holdings, Inc. (NASDAQ:MNRK) 4.24% 81.78% 11.40%
Old National Bancorp (NASDAQ:ONB) 3.72% 68.42% 7.88%
Orange County Bancorp, Inc. (OTCPK:OCBI) 2.81% 74.78% (1.20%)
Pacific Continental Corp. (NASDAQ:PCBK) 4.24% 56.75% 8.58%
PacWest Bancorp (NASDAQ:PACW) 4.63% 22.38% 6.90%
Pinnacle Bankshares, Inc. (OTCPK:PCLB) 3.60% 67.57% 7.88%
Pioneer Bankshares, Inc. (OTCPK:PNBI) 5.13% 65.89% 9.87%
PNC Financial Services Group, Inc. (NYSE:PNC) 2.68% 58.16% 9.03%
Provident Financial Holdings, Inc. (NASDAQ:PROV) 2.98% 72.73% 7.75%
Provident Financial Services, Inc. (NYSE:PFS) 3.20% 52.04% 7.12%
QNB Corporation (OTCPK:QNBC) 2.87% 59.09% 9.29%
Quaint Oak Bancorp, Inc. (OTCQX:QNTO) 3.70% 56.53% 7.55%
Sandy Spring Bancorp, Inc. (NASDAQ:SASR) 3.19% 54.83% 9.02%
South State Corporation (NASDAQ:SSB) 4.54% 63.28% 9.67%
State Street Corporation (NYSE:STT) 0.94% 74.81% 9.38%
Stock Yards Bancorp, Inc. (NASDAQ:SYBT) 3.63% 55.14% 12.98%
SunTrust Banks, Inc. (NYSE:STI) 2.91% 60.47% 8.25%
Territorial Bancorp (NASDAQ:TBNK) 3.21% 59.36% 6.70%
US Bancorp (NYSE:USB) 2.99% 50.86% 12.86%
Umpqua Holdings Corp. (NASDAQ:UMPQ) 4.30% 59.56% 5.78%
Union Bankshares, Corp. (NASDAQ:UBSH) 3.75% 63.46% 6.74%
United Bancshares, Inc. (NASDAQ:UBOH) 3.59% 64.40% 8.46%
Washington Federal, Inc. (NASDAQ:WAFD) 3.08% 38.75% 10.07%
Washington Trust Bancorp, Inc. (NASDAQ:WASH) 3.04% 52.65% 12%
Wayne Savings Bancshares, Inc. (NASDAQ:WAYN) 3.14% 68.26% 4.11%
Webster Financial Corp. (NYSE:WBS) 3.03% 55.48% 8.64%
Wells Fargo & Company (NYSE:WFC) 2.88% 55.51% 12.06%
WesBanco, Inc. (NASDAQ:WSBC) 3.29% 57.68% 7.62%
West Bancorp, Inc. (NASDAQ:WTBA) 3.46% 43.99% 14.27%
William Penn Bancorp, Inc (OTCPK:WMPN) 3.03% 39.14% 4.61%
Click to enlarge

These metrics can get you well on your way in your comparative analysis. Happy investing!

Disclosure: I am not a professional investor, and as such, the companies and/or positions mentioned and any associated analysis are related to my personal experience and expertise, and is not intended to be a recommendation to buy or sell. As everyone has their own risk tolerance, goals and needs, it is important that you perform your own due diligence.

Disclosure: I am/we are long WFC.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.