NEW YORK--(BUSINESS WIRE)--KBW, Inc. (NYSE: KBW), a full-service investment bank that specializes in the financial services sector, today named 40 U.S. banking institutions to its “Bank Honor Roll” of superior performers.
Honor Roll winners are publicly traded banking companies with at least $500 million in total assets that meet the following three conditions:
- No annual loss reported in net income per share before extraordinary items over the past 10 years.
- 2010 annual reported net income per-share before extraordinary items must have been equal to or greater than peak net income per-share over the past 10 years.
- Consecutive increases in net income per-share before extraordinary items since 2009.
KBW found that 40 companies, out of nearly 400 total companies screened, now qualify for inclusion in the “Bank Honor Roll”. They are: Alliance Financial Corporation (ALNC), Ames National Corporation (ATLO), Arrow Financial Corporation (AROW), Bancorp Rhode Island (BARI), Bank of Marin Bancorp (BMRC), Bank of the Ozarks, Inc. (OZRK), BOK Financial Corporation (BOKF), Camden National Corporation (CAC), Cass Information Systems (CASS), Century Bancorp, Inc. (CNBKA), Community Bank System, Inc. (CBU), DNB Financial Corporation (DNBF), Eagle Bancorp, Inc. (EGBN), ESB Financial Corporation (ESBF), First Citizens BancShares, Inc. (FCNCA), First Financial Bankshares (FFIN), First Financial Corporation (THFF), First of Long Island Corporation (FLIC), German American Bancorp (GABC), Harleysville Savings Financial Corporation (HARL), Hingham Institution for Savings (HIFS), Hudson City Bancorp, Inc. (HCBK), Merchants Bancshares, Inc. (MBVT), Monarch Financial Holdings, Inc. (MNRK), NB&T Financial Group, Inc. (NBTF), National Bankshares, Inc. (NKSH), Northwest Bancshares Inc. (NWBI), Norwood Financial Corp. (NWFL), Orrstown Financial Services, Inc. (ORRF), Parke Bancorp, Inc. (PKBK), Penns Woods Bancorp, Inc. (PWOD), Prosperity Bancshares, Inc. (PRSP), Republic Bancorp, Inc. (RBCAA), S.Y. Bancorp, Inc. (SYBT), SCBT Financial Corporation (SCBT), Simmons First National Corporation (SFNC), Southern Missouri Bancorp, Inc. (SMBC), Teche Holding Company (TSH), Tompkins Financial Corporation (TMP) and Washington Banking Company (WBCO).
“We believe the past decade has provided an adequate framework for judging bank performance, particularly given all the obstacles that have arisen,” noted KBW Chairman & CEO John Duffy. “These banks have successfully navigated a variety of different and sometimes difficult operating environments which have included everything from deteriorating credit quality to inverted yield curves and rising unemployment. We commend their resilience.”
In terms of stock price performance, Bank Honor Roll companies significantly outperformed both the banking industry and the overall stock market during the five-year period between 2005 and 2010.
Bank Honor Roll members posted an average price appreciation of 1.5% compounded annually compared to a 12.8% decline in the KBW Bank Index (BKX) and a 10.9% decline in the KBW Regional Banking Index (KRX) in the same period.
The Honor Roll banks also meaningfully outperformed the S&P 500 (SPX) return of 0.1% over the equivalent time period.
About KBW
KBW operates in the U.S., Europe and Asia through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and Keefe, Bruyette & Woods Asia Limited. It also offers asset management services through KBW Asset Management, Inc. Founded in 1962, the firm is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking, real estate and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities of financial services companies.