Forty-two of the 50 largest U.S. banks reported an increase in assets during the third quarter, with two major acquisitions shaking up the rankings going forward.
On Nov. 25, Charles Schwab Corp. agreed to acquire Omaha, Neb.-based TD Ameritrade Holding Corp., pushing its pro forma assets up by $43.79 billion, which still left it roughly $50 billion below No. 12 Bank of New York Mellon Corp.
First Horizon National Corp. broke into the top 50 list after announcing a $3.92 billion merger of equals deal with IBERIABANK Corp. on Nov. 11. First Horizon's assets and deposits are adjusted upward by $31.73 billion and $24.98 billion, respectively. The merger is expected to close by the second quarter of 2020. The combined entity will operate under the First Horizon banner and will be headquartered in Memphis, Tenn.
In recently completed deals, People's United Financial Inc. closed its acquisition of United Financial Bancorp Inc. on Nov. 1. The company sits at No. 44 on the list with $59.25 billion in assets and $44.23 billion in deposits.
TCF Financial Corp. completed its reverse merger of equals transaction with Chemical Financial Corp. on Aug. 1. The company now holds the No. 49 spot with $45.69 billion in assets and $35.29 billion in deposits.
JPMorgan Chase & Co., the U.S.'s largest bank by assets, reported a $37.28 billion increase in assets during the three-month period, the most among the Big Four U.S. banks. Meanwhile, Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. reported quarterly increases of $30.44 billion, $26.58 billion and $20.56 billion, respectively.
Goldman Sachs Group Inc., at No. 5, added $62.42 billion in assets during the third quarter, the largest nominal increase among the top 50 banks. On the flip side, HSBC North America Holdings Inc., the largest U.S. subsidiary of the U.K.'s HSBC Holdings PLC, reported a $25.73 billion drop in assets, the largest nominal decrease.
To conduct this analysis, S&P Global Market Intelligence examined the largest U.S. banks and thrifts by assets with a deposits-to-assets ratio of at least 25% or at least $20 billion in deposits for the quarter ended Sept. 30.
To compile a pro forma ranking, S&P Global Market Intelligence calculates pro forma assets after taking into account pending M&A transactions or deals that have closed after quarter-end. To be included in the pro forma adjustments, the deal value must be at least $500 million or involve assets or deposits in excess of $2 billion. Loan portfolio deals are not included because of a general lack of data on both deal consideration and the impact on total assets.
To view an Excel spreadsheet containing the top 50 U.S. banks and thrifts in the third quarter, click here.