The 2011 release of Bancography’s Brand Value Index, a quantitative ranking of the brand strength of all retail financial institutions in the US, finds Wells Fargo and Austin Telco FCU atop the list.
Among the largest U.S. institutions (assets $30B+), Wells Fargo reclaims the number one position for the first time since 2008, followed by U.S. Bank, M&T, Fifth Third and PNC. M&T and PNC ranked in the top five in previous years, but Fifth Third enters the top five for the first time in 2011.
Two institutions that previously ranked high on the list, Northern Trust and JPMorgan Chase, dropped out of the 2011 rankings, as their equity levels fell below Bancography’s minimum level for inclusion.
The BBVI rankings analyze US banks, thrifts and credit unions according to the profit premium their brands add to each institution’s underlying tangible value. This is the fourth consecutive year the BBVI study has been published by Bancography, a financial services consulting firm based in Birmingham, Alabama.
In calculating brand value, Bancography quantifies the proportion of each institution’s long-term value that is attributable to the intangible factors that constitute an institution’s brand — reputation, service quality, image and market awareness. The brand value index identifies institutions that produce financial results beyond what their capital base, market conditions and competitive environments would predict. The calculations reward institutions that display consistently strong earnings and a reasonable cost of funds.
Buoyed by a strong economy, the state of Texas leads all others throughout the study, with 12 Texas banks and nine credit unions ranked. Texas, the Midwest and the West place strongly in the rankings, with banks from those regions occupying 30 out of 40 positions. In contrast, the South and Mid-Atlantic regions are only minimally represented in the rankings, suggesting the troubled economy continues to affect brand strength. Institutions in those regions have suffered significant financial losses and greatly diminished balance growth rates.
Reflecting the strength and stability of the credit union sector, 19 of 2010’s top 25 large institutions retain their top-25 status in 2011. For the second year in a row Austin Telco FCU leads the largest credit unions (assets > $1 billion), followed by Landmark Credit Union and Local Government FCU.
The change — or lack thereof — in credit union rankings versus 2010 differs sharply from the commercial bank rankings, which saw widespread change from the prior year.
The tables below display the top ranking bank and credit union brands for 2011, with distinctions made between banks and credit unions of varying asset tiers. 2010 rankings are posted for comparison.
Institutions with negative average income over the past three years, or with insufficient equity, are not included in the rankings.
Megabanks ($30+ billion assets)
* Moved up from $2B-$30B asset tier
Large Banks ($2 billion – $20 billion assets)
|15||Bank of Oklahoma||OK||n/a|
** Did not exist before 2010 (result of 10 merged banks)
* Moved up from $500M-$2B asset tier
n/a = Did not meet equity to asset ratio requirement
Medium-Sized Banks ($500 million – $2 billion assets)
|7||Bank of the West||TX||5|
|17||First State Bank||IL||584*|
|18||Boone County National||MO||18|
* Moved up from < $500M asset tier
n/a = did not meet equity to asset ratio requirement
Small Banks ($500+ million assets)
|2||First State SD||TX||48|
|6||Granite Falls Bank||MN||104|
|7||Farmers & Merchants||OK||69|
|8||Bank of Burlington||CO||131|
|10||Oklahoma State Bank||OK||7|
|11||East Texas National||TX||1|
|12||First National La Grange||IL||2|
|14||Community Bank Louisiana||LA||11|
|15||First National Trinity||TX||10|
|16||First Security State||TX||25|
|17||Community State Bank||OK||89|
|18||Bank of Baker||MT||12|
|19||Farmers Bank & Trust||KS||33|
|20||First State Bank||TX||73|
Large Credit Unions ($1+ billion assets)
|5||University of Wisconsin||WI||8|
|20||Police & Fire||PA||11|
|21||San Diego County||CA||24|
* Moved up from < $1 billion asset tier
Smaller Credit Unions (less than $1 billion assets)
|14||University of Hawaii||HI||23|
|20||North East Texas||TX||30|
|23||University of Illinois||IL||35|