Bulletin
Investor Alert

New York Markets After Hours

Philip van Doorn

Deep Dive Archives | Email alerts

Feb. 7, 2019, 4:27 p.m. EST

BB&T-SunTrust merger signals more bank deals are coming

Bigger is better, as large regional banks face profit pressures

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    TCF Financial Corp. (TCF)

or Cancel Already have a watchlist? Log In

By Philip van Doorn, MarketWatch

1 2

KBW Bank Index

The KBW Bank Index /zigman2/quotes/210598427/realtime BKX -1.62% is made up of 24 stocks of large money-center and regional U.S. bank holding companies.

Leaving out the “big four” banks (JPMorgan Chase /zigman2/quotes/205971034/composite JPM +0.57% , Bank of America /zigman2/quotes/200894270/composite BAC -0.21% , Citigroup /zigman2/quotes/207741460/composite C -3.93% and Wells Fargo /zigman2/quotes/203790192/composite WFC -4.57% ), here are the 15 banks in the index that have had the lowest average return on common equity (ROCE) over the past five years, through 2018:

Company Ticker City Average ROCE - 5 years Total assets ($bil) Total return - 2019 through Feb. 6 Total return - 2018 Total return - 3 Years
New York Community Bancorp Inc. /zigman2/quotes/207630974/composite NYCB Westbury, N.Y. 5.80 $52 27.8% -23.2% -9.4%
People's United Financial Inc. /zigman2/quotes/200304796/composite PBCT Bridgeport, Conn. 6.11 $48 17.2% -19.8% 32.3%
Citizens Financial Group Inc. /zigman2/quotes/205410375/composite CFG Providence, R. I 6.17 $161 17.2% -27.4% 85.8%
Zions Bancorporation N.A. /zigman2/quotes/207521274/composite ZION Salt Lake City 7.01 $69 20.2% -18.3% 135.5%
Regions Financial Corp. /zigman2/quotes/202396577/composite RF Birmingham, Ala. 7.58 $126 15.2% -20.6% 112.4%
Capital One Financial Corp. /zigman2/quotes/204480509/composite COF McLean, Va. 8.19 $373 6.0% -22.8% 34.2%
KeyCorp /zigman2/quotes/202852742/composite KEY Cleveland 9.11 $140 11.6% -24.6% 64.6%
SunTrust Banks Inc. Atlanta 9.25 $216 16.5% -19.8% 84.1%
Bank of New York Mellon Corp. /zigman2/quotes/200171276/composite BK New York 9.26 $363 11.7% -10.9% 60.6%
Comerica Inc. /zigman2/quotes/207245846/composite CMA Dallas 9.27 $71 15.9% -19.1% 143.3%
BB&T Corp. Winston-Salem, N.C. 9.28 $226 12.0% -10.2% 65.6%
M&T Bank Corp. /zigman2/quotes/207957637/composite MTB Buffalo, N.Y. 9.33 $120 12.9% -14.6% 59.5%
PNC Financial Services Group Inc. /zigman2/quotes/203416310/composite PNC Pittsburgh 9.86 $382 5.7% -17.0% 57.6%
State Street Corp. /zigman2/quotes/209758976/composite STT Boston 10.66 $245 11.4% -34.0% 37.3%
Huntington Bancshares Inc. /zigman2/quotes/209314988/composite HBAN Columbus, Ohio 10.95 $109 12.2% -15.3% 70.3%
Source: FactSet

We left BB&T and SunTrust on the list, despite the merger announcement.

KBW Regional Banking Index

The KBW Regional Banking Index /zigman2/quotes/210598426/realtime XX:KRX -1.91% consists of 50 relatively large regional banks that aren’t included in BKX. Here are the 15 banks in this index that have had the lowest average returns on common equity over the past five years:

Company Ticker City Average ROCE - 5 years Total assets ($bil) Total return - 2019 through Feb. 6 Total return - 2018 Total return - 3 Years Total Return - 5 Year
Investors Bancorp Inc. /zigman2/quotes/210297037/composite ISBC Short Hills, N.J. 5.45 $26 20.4% -22.8% 17.7% 41.3%
Umpqua Holdings Corp. /zigman2/quotes/203440669/composite UMPQ Portland, Ore. 6.24 $27 11.0% -20.3% 37.6% 23.6%
Sterling Bancorp /zigman2/quotes/206493117/composite STL Montebello, N.Y. 6.28 $31 19.3% -32.0% 40.9% 76.2%
Popular Inc. /zigman2/quotes/202481774/composite BPOP San Juan, P.R. 6.56 $48 13.9% 35.8% 128.7% 116.2%
Iberiabank Corp. Lafayette, La. 6.61 $31 17.3% -15.3% 70.3% 31.7%
Valley National Bancorp /zigman2/quotes/205157666/composite VLY Wayne, N.J. 6.99 $32 17.6% -17.8% 34.2% 34.5%
First Midwest Bancorp Inc. /zigman2/quotes/202490803/composite FMBI Chicago 7.11 $16 12.4% -15.9% 42.7% 52.1%
Hancock Whitney Corp. /zigman2/quotes/208577715/composite HWC Gulfport, Miss. 7.27 $28 18.4% -28.5% 87.9% 38.8%
F.N.B. Corp. /zigman2/quotes/209819908/composite FNB Pittsburgh 7.32 $33 19.2% -26.2% 8.0% 19.5%
Old National Bancorp /zigman2/quotes/209493706/composite ONB Evansville, Ind. 7.32 $20 8.1% -9.2% 63.7% 44.9%
Associated Banc-Corp /zigman2/quotes/205616505/composite ASB Green Bay, Wis. 7.34 $34 12.6% -20.2% 40.4% 54.3%
Provident Financial Services Inc. /zigman2/quotes/207499634/composite PFS Jersey City, N.J. 7.49 $10 14.0% -7.6% 64.1% 97.4%
Brookline Bancorp Inc. /zigman2/quotes/208830497/composite BRKL Boston 7.72 $7 12.1% -9.9% 60.7% 107.1%
United Bankshares Inc. /zigman2/quotes/202436974/composite UBSI Charleston, W.Va. 7.72 $19 16.6% -7.0% 18.8% 47.6%
Source:FactSet

Don’t miss: These 2 stocks you’ve never heard of are better ways to profit from Amazon’s growth

<STRONG>Create an email alert for Philip van Doorn’s Deep Dive columns <INTERNAL-PAGE URL="/tools/alerts/newsColumn.asp">here.</INTERNAL-PAGE></STRONG>

/zigman2/quotes/210598427/realtime
US : U.S.: Nasdaq
72.82
-1.20 -1.62%
Volume: 0.00
July 14, 2020 4:27p
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 98.21
+0.56 +0.57%
Volume: 41.62M
July 14, 2020 4:00p
P/E Ratio
13.23
Dividend Yield
3.67%
Market Cap
$297.54 billion
Rev. per Employee
$497,647
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 24.14
-0.05 -0.21%
Volume: 66.43M
July 14, 2020 4:00p
P/E Ratio
9.85
Dividend Yield
2.98%
Market Cap
$209.86 billion
Rev. per Employee
$543,289
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 50.15
-2.05 -3.93%
Volume: 34.45M
July 14, 2020 4:02p
P/E Ratio
6.96
Dividend Yield
4.07%
Market Cap
$108.67 billion
Rev. per Employee
$479,167
loading...
/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 24.25
-1.16 -4.57%
Volume: 116.90M
July 14, 2020 4:02p
P/E Ratio
27.72
Dividend Yield
8.41%
Market Cap
$104.18 billion
Rev. per Employee
$392,114
loading...
/zigman2/quotes/207630974/composite
US : U.S.: NYSE
$ 9.90
-0.02 -0.20%
Volume: 6.95M
July 14, 2020 4:00p
P/E Ratio
12.78
Dividend Yield
6.87%
Market Cap
$4.60 billion
Rev. per Employee
$611,426
loading...
/zigman2/quotes/200304796/composite
US : U.S.: Nasdaq
$ 11.16
-0.16 -1.37%
Volume: 3.10M
July 14, 2020 4:00p
P/E Ratio
8.80
Dividend Yield
6.45%
Market Cap
$4.80 billion
Rev. per Employee
$344,671
loading...
/zigman2/quotes/205410375/composite
US : U.S.: NYSE
$ 23.89
-0.48 -1.97%
Volume: 3.86M
July 14, 2020 4:00p
P/E Ratio
8.18
Dividend Yield
6.28%
Market Cap
$10.40 billion
Rev. per Employee
$395,083
loading...
/zigman2/quotes/207521274/composite
US : U.S.: Nasdaq
$ 32.02
-0.86 -2.62%
Volume: 1.94M
July 14, 2020 4:00p
P/E Ratio
10.11
Dividend Yield
4.25%
Market Cap
$5.39 billion
Rev. per Employee
$297,324
loading...
/zigman2/quotes/202396577/composite
US : U.S.: NYSE
$ 10.21
-0.27 -2.58%
Volume: 10.06M
July 14, 2020 4:00p
P/E Ratio
7.97
Dividend Yield
6.07%
Market Cap
$10.06 billion
Rev. per Employee
$320,096
loading...
/zigman2/quotes/204480509/composite
US : U.S.: NYSE
$ 60.68
-0.88 -1.43%
Volume: 4.04M
July 14, 2020 4:00p
P/E Ratio
11.95
Dividend Yield
2.64%
Market Cap
$28.03 billion
Rev. per Employee
$683,151
loading...
/zigman2/quotes/202852742/composite
US : U.S.: NYSE
$ 11.39
-0.37 -3.15%
Volume: 8.84M
July 14, 2020 4:00p
P/E Ratio
8.38
Dividend Yield
6.50%
Market Cap
$11.47 billion
Rev. per Employee
$402,805
loading...
/zigman2/quotes/200171276/composite
US : U.S.: NYSE
$ 38.97
+0.11 +0.28%
Volume: 5.40M
July 14, 2020 4:02p
P/E Ratio
8.39
Dividend Yield
3.18%
Market Cap
$34.41 billion
Rev. per Employee
$374,016
loading...
/zigman2/quotes/207245846/composite
US : U.S.: NYSE
$ 34.93
-1.07 -2.97%
Volume: 1.18M
July 14, 2020 4:03p
P/E Ratio
6.57
Dividend Yield
7.79%
Market Cap
$5.01 billion
Rev. per Employee
$444,417
loading...
/zigman2/quotes/207957637/composite
US : U.S.: NYSE
$ 98.33
-3.31 -3.26%
Volume: 1.02M
July 14, 2020 4:03p
P/E Ratio
7.97
Dividend Yield
4.47%
Market Cap
$13.04 billion
Rev. per Employee
$371,138
loading...
/zigman2/quotes/203416310/composite
US : U.S.: NYSE
$ 101.26
-1.42 -1.38%
Volume: 3.42M
July 14, 2020 4:00p
P/E Ratio
9.43
Dividend Yield
4.54%
Market Cap
$43.56 billion
Rev. per Employee
$367,770
loading...
/zigman2/quotes/209758976/composite
US : U.S.: NYSE
$ 64.99
+0.40 +0.62%
Volume: 1.83M
July 14, 2020 4:04p
P/E Ratio
11.18
Dividend Yield
3.20%
Market Cap
$22.73 billion
Rev. per Employee
$305,416
loading...
/zigman2/quotes/209314988/composite
US : U.S.: Nasdaq
$ 8.63
-0.04 -0.46%
Volume: 18.77M
July 14, 2020 4:00p
P/E Ratio
8.84
Dividend Yield
6.95%
Market Cap
$8.79 billion
Rev. per Employee
$330,083
loading...
/zigman2/quotes/210598426/realtime
XX : U.S.: Nasdaq
66.57
-1.30 -1.91%
Volume: 47,902
July 14, 2020 8:27p
loading...
/zigman2/quotes/210297037/composite
US : U.S.: Nasdaq
$ 8.07
-0.09 -1.04%
Volume: 1.12M
July 14, 2020 4:00p
P/E Ratio
10.99
Dividend Yield
5.95%
Market Cap
$2.04 billion
Rev. per Employee
$498,724
loading...
/zigman2/quotes/203440669/composite
US : U.S.: Nasdaq
$ 10.26
-0.26 -2.47%
Volume: 1.06M
July 14, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
8.19%
Market Cap
$2.32 billion
Rev. per Employee
$340,377
loading...
/zigman2/quotes/206493117/composite
US : U.S.: NYSE
$ 10.22
-0.32 -3.04%
Volume: 3.08M
July 14, 2020 4:00p
P/E Ratio
6.26
Dividend Yield
2.74%
Market Cap
$2.05 billion
Rev. per Employee
$682,589
loading...
/zigman2/quotes/202481774/composite
US : U.S.: Nasdaq
$ 35.45
-0.70 -1.94%
Volume: 411,582
July 14, 2020 4:00p
P/E Ratio
6.38
Dividend Yield
4.51%
Market Cap
$3.10 billion
Rev. per Employee
$315,400
loading...
/zigman2/quotes/205157666/composite
US : U.S.: Nasdaq
$ 7.01
-0.12 -1.62%
Volume: 2.51M
July 14, 2020 4:00p
P/E Ratio
9.20
Dividend Yield
6.28%
Market Cap
$2.88 billion
Rev. per Employee
$404,793
loading...
/zigman2/quotes/202490803/composite
US : U.S.: Nasdaq
$ 12.45
-0.25 -1.97%
Volume: 507,714
July 14, 2020 4:00p
P/E Ratio
7.93
Dividend Yield
4.50%
Market Cap
$1.45 billion
Rev. per Employee
$356,695
loading...
/zigman2/quotes/208577715/composite
US : U.S.: Nasdaq
$ 18.49
-0.45 -2.38%
Volume: 386,480
July 14, 2020 4:00p
P/E Ratio
12.09
Dividend Yield
5.84%
Market Cap
$1.63 billion
Rev. per Employee
$332,581
loading...
/zigman2/quotes/209819908/composite
US : U.S.: NYSE
$ 7.05
-0.09 -1.26%
Volume: 2.49M
July 14, 2020 4:00p
P/E Ratio
6.92
Dividend Yield
6.81%
Market Cap
$2.31 billion
Rev. per Employee
$326,606
loading...
/zigman2/quotes/209493706/composite
US : U.S.: Nasdaq
$ 12.83
-0.17 -1.31%
Volume: 618,279
July 14, 2020 4:00p
P/E Ratio
10.76
Dividend Yield
4.36%
Market Cap
$2.14 billion
Rev. per Employee
$281,298
loading...
/zigman2/quotes/205616505/composite
US : U.S.: NYSE
$ 12.35
-0.25 -1.98%
Volume: 1.15M
July 14, 2020 4:00p
P/E Ratio
7.35
Dividend Yield
5.83%
Market Cap
$1.94 billion
Rev. per Employee
$321,671
loading...
/zigman2/quotes/207499634/composite
US : U.S.: NYSE
$ 13.71
-0.01 -0.07%
Volume: 319,244
July 14, 2020 4:00p
P/E Ratio
9.17
Dividend Yield
6.71%
Market Cap
$904.27 million
Rev. per Employee
$436,635
loading...
/zigman2/quotes/208830497/composite
US : U.S.: Nasdaq
$ 9.36
-0.03 -0.27%
Volume: 315,697
July 14, 2020 4:00p
P/E Ratio
15.60
Dividend Yield
4.92%
Market Cap
$739.58 million
Rev. per Employee
$421,842
loading...
/zigman2/quotes/202436974/composite
US : U.S.: Nasdaq
$ 26.20
-0.21 -0.80%
Volume: 325,404
July 14, 2020 4:00p
P/E Ratio
11.29
Dividend Yield
5.34%
Market Cap
$3.43 billion
Rev. per Employee
$380,375
loading...

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

1 2
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.