S&P Ranks Banner a Top 50 Performing U.S. Public Bank

March 2023
Banner Bank Tacoma branch building exterior

Banner Bank was again named one of the strongest financial institutions in the nation for 2022. S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI) ranked Banner one of the 50 best performing U.S. public banks with more than $10 billion in total assets at year-end 2022. Just the second year for this category, the list is part of S&P’s broader annual rankings of best-performing banks and credit unions. 

According to S&P Global Market Intelligence, the list is based on banks with total assets exceeding $10 billion as of Dec. 31, 2022. Their ranking was based on three major categories, using calendar-year data as well as GAAP data unless otherwise noted: growth, weighted at 35%; profitability, weighted at 35%; and safety and soundness weighted at 30%. The two growth metrics were 2022 pre-provision EPS change (20%) and five-year average operating revenue change (15%). The three profitability metrics were 2022 return on average tangible common equity (ROATCE) (15%), 2022efficiency ratio (10%) and 2022 cost of funds (10%). For ROATCE and cost of funds, GAAP data was used when available; otherwise, regulatory data was used. The two safety and soundness metrics were leverage ratio at Dec. 31, 2022, (15%) and five-year average net charge-offs-to-average loans (15%). For leverage ratio, GAAP data was used when available; otherwise, regulatory data was used. 

S&P made a specific note that their list was assembled on March 14, 2023. They called out that companies with a failed bank in their corporate structure or banks undergoing a voluntary liquidation, in addition to mutual holding companies and other operating subsidiaries, were excluded.