My latest copy of Bank Director arrived in the mail Tuesday, and it has me reflecting on both success – and failure – in the banking world.
The 2012 Bank Performance Scorecard definitely highlights success, featuring a lot of “comeback banks” – and their CEOs are profoundly goal driven. Huntington Bancshares Stephen Steinour stated that his bank “wants to win”, and did so through focus on increased capital and growth in lending – Huntington landed at #2 of banks with $50 billion in assets and above. National Penn Bancshares, ranked #12 of banks $5 billion to $50 billion, raised new capital and strengthened its balance sheet in order to run a bank that is “clean, strong, and efficient”. Both banks were solidly profitable after posting huge losses in 2009. Will they perform even better in 2013?
Why is Georgia the #1 state for bank failures? The failure has been epic, with 79 bank failures since the crisis began, $8.5 billion cost to the DIF, and dozens of directors facing FDIC lawsuits. While the collapse of the subprime mortgage market gets a lot of the blame, Georgia’s loose regulation set the stage. Will the remaining banks be stronger in the aftermath – or are there more failures on the horizon?
In the news: