Bank and thrift stock valuations have fallen over the last three months, based on prices relative to tangible book value.
The median price-to-tangible book value ratio for major exchange-traded U.S. banks and thrifts was 169.9% as of May 31, down 14.7 percentage points from SNL's last quarterly analysis on Feb. 28, 2017.
Wilmington, N.C.-based Live Oak Bancshares Inc. had the highest price to tangible book value of 396.0% as of May 31, up 43.3 percentage points from the previous analysis. The bank completed an acquisition of Reltco Inc. and National Assurance Title Inc. on Feb. 21 and announced a joint venture focused on digital banking services with Atlanta-based First Data Corp. on May 9.
DeWitt, N.Y.-based Community Bank System Inc. took the No. 2 spot with a price-to-tangible book of 364.9% replacing Conway, Ark.-based Home BancShares Inc. Home BancShares dropped down to the No. 6 spot with a price-to-tangible book of 336.2%, down from 425.7% as of Feb. 28.
Home Bancshares completed two bank deals, Fort Lauderdale, Fla.-based Giant Holdings Inc. and Sarasota, Fla.-based Bank of Commerce, during the first quarter of 2017. It also announced it would acquire Pompano Beach, Fla.-based Stonegate Bank on March 27. This would be the largest acquisition in the company's history.
Seven new companies ranked on the May list — Boston-based State Street Corp., Nashville, Tenn.-based FB Financial Corp., Wilmington, Del.-based WSFS Financial Corp., Bryn Mawr, Pa.-based Bryn Mawr Bank Corp., Columbia, S.C.-based South State Corp., Pasadena, Calif.-based East West Bancorp Inc. and San Antonio-based Cullen/Frost Bankers Inc.
The companies that exited from the February analysis top 25 list include Little Rock, Ark.-based Bank of the Ozarks Inc., Houston-based Prosperity Bancshares Inc., Ithaca, N.Y.-based Tompkins Financial Corp., McKinney, Texas-based Independent Bank Group Inc., Honolulu-based First Hawaiian Inc., Kalispell, Mont.-based Glacier Bancorp Inc.; and Beverly Hills, Calif.-based PacWest Bancorp.
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