Banks from the Southwest, Midwest Continue Brand Dominance In 2011

December 6, 2011

Confirming the ongoing volatility in the banking sector, significant changes occur in the 2011 Bancography Brand Value Index (BBVI). 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 previous high ranking institutions, Northern Trust and JPMorgan Chase, drop out of the rankings, as their equity levels fell below the minimum level for inclusion.

FirstBank (CO) recently merged its numerous subsidiary banks into a single institution, moving it into mid-sized institution tier (assets $2B – $30B), and it earns the top position in that category. FirstBank is followed by United Bank (WV), The Central Trust Bank (MO), Union Savings Bank (OH) and Westamerica Bank (CA). All but Westamerica are new to the top five. After unseating Woodforest National Bank (TX) for the top spot in 2010, Intrust Bank (KS) returns to the top 10 in the sixth position. Woodforest, a perennial top five finisher in the category, now ranks 14th.

Buoyed by a strong economy, Texas commands a leading position throughout the rankings, as 12 Texas banks rank in the top 10 across the four asset tiers of the index. As in 2010, Texas, the Midwest and the West place strongly in the rankings, with banks from those regions occupying 30 out of 40 positions. In the assets < $500 million category, no other region places in the top 10. In contrast, the South and Mid-Atlantic regions are only minimally represented in the top 10 lists, indicating the troubled economy continues to affect brand strength. Institutions in those regions have suffered significant financial losses and greatly diminished balance growth rates

Bancography, a financial services consulting firm, announced these findings in the release of its 2011 BBVI, a quantitative ranking of the brand strength of all U.S. banks, thrifts and credit unions. The index ranks financial institution brands by the premium they add to each institution’s underlying tangible value.

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. These factors include the institution’s 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. (continued)