RankingBanking 25 - Flipbook - Page 4
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What It Takes to
Be the Best
By Jackie Stewart
W
hat makes a top performing
for several of the banks on this year’s list.
bank? It’s a question that Bank
“There is certainly the theory that scale is
Director tackles every year, and a
going to drive profitability and that it’s going
few themes emerge.
to drive efficiency,” says Mandi Simpson, a
One could be that the bank
has a unique strategy that it has
partner and leader of the accounting advisory
team at Crowe.
mastered. “I think it’s more im-
Columbia Banking System in Tacoma, Wash-
portant that you stick with your
ington, completed a transformative merger of
strategy,” says Kara Baldwin, a
equals with Umpqua Holdings Corp. in 2023
partner and the financial services
and announced another significant deal earlier
audit leader at Crowe. “What’s
this year with its planned purchase of Pacific
your bank’s vision, and what is the strategy to
Premier Bancorp in Irvine, California. Colum-
get there? If you’re going to have something
bia came in at No. 2 for banks with at least
that’s novel and unique, be the best at that.”
$50 billion in assets.
This is the case for 1st Source Corp. in South
Banks in California dominated the list this
Bend, Indiana, and Nicolet Bankshares in Green
year, posting strong financial returns and mak-
Bay, Wisconsin. 1st Source focuses on niche
ing up seven of the top 25 spots. “Generally, if
areas such as construction equipment and air-
you have a higher [return on assets] compared
craft financing, while Nicolet is mainly a lender
to peers, you may have a lower [return on equi-
of commercial and industrial loans in smaller
ty] compared to peers or vice versa,” Simpson
markets where they can better connect with
says. “But [California banks] nailed it at both.”
customers. Both institutions ranked well on this
One California bank highlighted this year, East
year’s RankingBanking. The analysis is spon-
West Bancorp in Pasadena, achieved its suc-
sored by accounting and consulting firm Crowe.
cess, in part, by helping its customers navigate
Each year, the list ranks the 300 largest publicly
uncertainty around tariffs.
traded banks on profitability, capital adequacy and credit quality. This year’s ranking uses
Whatever their business models, these top
performers shined.
year-end 2024 data from S&P Global Market
Intelligence, analyzed by Piper Sandler & Co.
Being an active acquirer is another attribute
Jackie Stewart is executive editor of Bank Director.
