trending Market Intelligence /marketintelligence/en/news-insights/trending/OkGFd-wi4NUxCSUnG1MFQw2 content esgSubNav
In This List

Banks with the lowest price-to-adjusted TBV

Blog

Global Capital Markets & SPAC Activity – H1 2021

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration


Banks with the lowest price-to-adjusted TBV

After losing over one-fifth of its value in a little over a month, San Juan, Puerto Rico-based OFG Bancorp is now trading at a lower price-to-adjusted tangible book value multiple than any other major exchange-traded bank or thrift. The bank had a price-to-adjusted tangible book value ratio of 75.6% as of June 2, down from 96.9% at the end of April.

OFG Bancorp's stock had already been struggling in 2017, losing 10.2% in the year through April. Then on May 3, the Puerto Rico government announced that it would restructure $70 billion of its debt, pushing OFG's stock down another 20.9% between the end of April and June 2. Another Puerto Rico-based bank, First BanCorp., was one of five new entrants in S&P Global Market Intelligence's monthly list of the 25 stocks with the lowest P/ATBV ratio this month.

The other new entrants were: Short Hills, N.J.-based Investors Bancorp Inc., Philadelphia-based Beneficial Bancorp Inc., Wyomissing, Pa.-based Customers Bancorp Inc. and Newton, N.C.-based Peoples Bancorp of North Carolina Inc.

The median P/ATBV ratio for the industry hit 196.1% as of June 2, the lowest level since November, when it was 185.5%. Bank stocks have declined in recent weeks amidst concerns that the Trump administration's pro-business campaign promises may not come to fruition.

The SNL U.S. Bank and Thrift index lost 2.4% between April 28 and June 2, compared to a 2.6% gain for the S&P 500.

To compile this ranking, S&P Global Market Intelligence analyzed operating U.S. banks and thrifts with more than $1 billion in assets that trade on the Nasdaq, NYSE or NYSE MKT exchanges. Public mutual holding companies as well as holding companies with failed banking units 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 over common shares outstanding.

SNL Image

SNL Image

Click here to see S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value.

Click here for a template that provides pricing trends and profitability ratios for financial institutions.