Tangible Book Value Scorecard: Rodis Coverage Universe & Banks > $50 Billion in Assets


PDF ATTACHEDFIG Partners Industry Analysis 8-31-16 – Tangible Book Value Scorecard – Rodis Coverage

In this report we review Tangible Book Value (TBV) trends for the 23 Banks under coverage as well as 21 Banks with Assets above $50 Billion. Despite the current low rate environment and other challenges facing the Banking industry the median level of growth over the past year was 8-9% for the two groups (from 6/30/15 to 6/30/16). And over the past three years the 23 Banks under coverage has seen a median increase of 23% while the Banks > $50 Billion have seen TBV expand 29%. Looking ahead, based on consensus estimates, TBV is expected to show mid-to-high single digit Y/Y-growth for both 2016 and 2017.

The table on page 2 reviews these TBV trends for the 23 Banks under coverage while page 3 shows the Banks with Assets > $50 Billion. Some of the covered Banks that rank near the top on both a 1-year and 3-year basis include: TCBI-Texas Capital Bancshares; PVTB-PrivateBancorp; PB-Prosperity Bancshares; UMBF-UMB Financial-; LKFN-Lakeland Financial; and SYBT-Stock Yards Bancorp (Note: All six banks are currently rated ‘Market-Perform’). Looking ahead eight covered Banks are expected to show TBV growth of 10% or more in 2016 (from 12/31/15 to 12/31/16). Furthermore, six of the Banks are currently expected to report growth of 10%+ in 2017.

For the Banks with Assets > $50 Billion some of the companies that consistently ranked near the top on both a 1-year and 3-year basis include: FRC-First Republic Bank-‘Market-Perform’; BK-Bank of New York Mellon-‘Not rated’; and USB-U.S. Bancorp-‘Not rated’. Additionally, in 2016 10 of the 21 banks are currently projected to grow TBV by 10% or more. Then in 2017 just one of the Banks is expected to show double-digit growth in TBV – FRC. For more information on these trends see the attached tables on pages 2 and 3.