Seven new companies entered SNL Financial's monthly list of the 25 banks and thrifts with the lowest adjusted price-to-tangible book value ratios in January.
Seattle-based HomeStreet Inc. joined the list at No. 13 after the bank's stock fell by 17.1% in January. On Jan. 19, the SEC reported that HomeStreet had agreed to pay a $500,000 settlement to settle charges that the company used improper fair value hedge accounting and impeded potential whistleblowers.
S&P Global Market Intelligence analyzed U.S. banks and thrifts trading on the Nasdaq, NYSE or NYSE MKT, and with total assets of greater than $1 billion for the most recent quarter available. Public mutual holding companies are 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.
Irvine, Calif.-based Opus Bank's stock fell by 32.3% last month, pushing the company's P/ATBV ratio down to 124.9%. Opus reported a $19.0 million net loss for the fourth quarter of 2016, due mostly to a $69.5 million loan loss provision made following an internal and third-party review. In addition, on Jan. 30, Opus announced a $50 million capital raise to help bring the company's Tier 1 leverage ratio back above 8%.
Wilmington, Del.-based The Bancorp Inc., Burr Ridge, Ill.-based BankFinancial Corp., Louisville, Ky.-based Republic Bancorp Inc., Lewiston, Maine-based Northeast Bancorp and Willimantic, Conn.-based SI Financial Group Inc. also entered the list in January. Northeast Bancorp became eligible for the ranking after reporting over $1 billion in assets for the first time as of year-end 2016.
New Orleans-based First NBC Bank Holding Co.'s stock fell by 45.2% in January, pushing the company's P/ATBV ratio down to 29.9% as of Jan. 31, the lowest ratio among all banks and thrifts for the fourth month in a row. First NBC's stock dropped by almost a third on the last day of the month after the company stated that it expected to record a "material" valuation allowance on its deferred tax asset.
Six companies exited the list in January, including Bank of America Corp., Knoxville, Tenn.-based SmartFinancial Inc., Jefferson City, Mo.-based Hawthorn Bancshares Inc., Honesdale, Pa.-based Norwood Financial Corp., Norwood, Maine-based Blue Hills Bancorp Inc. and Fairfield, N.J.-based Kearny Financial Corp.