The U.S. banking industry continued to post gains in November. The median price-to-adjusted tangible book value for the industry was at 202.2% at Nov. 30, after falling below the 200% mark in October. The median return for fully converted, major exchange-traded banks and thrifts with greater than $1 billion in assets was 3.0% during the month, matching the total return on the SNL U.S. Bank and Thrift Index during the period.
To compile this ranking, S&P Global Market Intelligence analyzed operating U.S. banks and thrifts with more than $1 billion in total assets that trade on the Nasdaq, NYSE or NYSE MKT exchanges. Public mutual holding companies were excluded from the analysis. Adjusted tangible book value is calculated as the sum of tangible common equity and loan loss reserves less nonperforming assets and loans 90 days past due but still accruing interest divided by common shares outstanding.
Anchorage, Alaska-based Northrim BanCorp Inc. exited the list after the stock returned 15.2% during the month. The community bank reported improved margins and efficiency ratio for the third quarter. Its price-to-adjusted TBV rose to 154.8% at Nov. 30, from 132.5% as of Oct. 31.
The two other institutions to exit the list were Louisville, Ky.-based Republic Bancorp Inc. and Woodbridge, N.J.-based Northfield Bancorp Inc.
The three entrants to the list in November were Knoxville, Tenn.-based SmartFinancial Inc.; Renton, Wash.-based First Financial Northwest Inc.; and Shippensburg, Pa.-based Orrstown Financial Services Inc.
OFG Bancorp remained the cheapest bank stock on the list, even though it returned 10.1% during November. The stock has fallen by nearly 24% this year, and the Puerto Rico-based bank has been No. 1 on the list since the beginning of June.
Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles on the U.S. financial sector.
Click here for a webinar on creating a template for price-to-adjusted tangible book value.
Click here to see S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value as of Nov. 30, 2017.
Click here for a template that provides pricing trends and profitability ratios for financial institutions.