The following article originally appeared on February 3, 2022 on Forbes.com.
America’s banks rode a rebounding economy to a year of growth as unprecedented federal stimulus during the Covid-19 pandemic helped the U.S. emerge from the quickest recession in U.S. history. While the economic rebound was stronger than peer countries and powered a strong 5.7% GDP growth, it also left the sting of inflation, with the consumer price index measuring at 7% for December, the highest since 1982.
The good news, for banks, is that after more than a decade of interest rate declines, the Federal Reserve seems committed to raising interest rates. This should improve banks’ ability to earn net interest margin, the lifeblood of most banks from an earnings standpoint. Already bank stocks have been on the move. In the last 12 months, shares of iShares U.S. Regional Bank ETF have gained nearly 40% versus only 22% for the S&P 500 Index.
Entering this new era, bank profitability is on the rise, with 96.8% of banks profitable, according to data from the Federal Deposit Insurance Corporation, which insures or supervises more than 8,000 banks nationwide. This marks a new highwater mark for this century after that number dipped as low as 69.2% in 2009. Net incomes were similarly strong in 2021, hitting an average above $216 billion, a 47% increase year over year. Total assets, loans, and deposits were all similarly up year over year.
Forbes’ 13th annual America’s Best Banks list looks at growth, credit quality and profitability to rank the 100 largest publicly-traded banks and thrifts.
While S&P Global Market Intelligence provides the data, the rankings below are done separately by Forbes.
Fifteen EPCOR members made the list of Best Banks, meaning 30% of the Best Banks of 2022 are EPCOR members! Congratulations to the following:
1. Home BancShares (Centennial Bank)
2. Bank OZK
16. Central Bancompany (The Central Trust Bank)
20. First National of Nebraska (First National Bank of Omaha)
23. First Merchants (First Merchants Bank)
34. Commerce Bank
35. Enterprise Financial Services (Enterprise Bank & Trust)
44. Simmons Bank
52. First Busey (Busey Bank)
58. UMB Financial (UMB Bank NA)
64. Old National Bank
72. KeyCorp (Key Bank)
81. BOK Financial
87. TFS Financial (Third Federal Savings & Loan Association)
98. Huntington Bank (The Huntington National Bank)
To view the full list, click here.
Source: Forbes
We Want to Honor YOU!
Each year, EPCOR recognizes individuals and organizations for their outstanding leadership, innovation and excellence in the development, implementation or advancement of electronic payments and risk mitigation solutions with The Marquis Award and/or The David P. DeMarea Payments Innovation Award. The awards are presented at EPCOR Payments Conference – Spring and Fall. All EPCOR members, including depository financial institutions, affiliates and associates, and their affiliated organizations, are eligible nominees. We invite your nominations via the official nomination form. You can even nominate yourself! Click here to learn more and to submit your nomination.
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