RankingBanking 26 Digital - Flipbook - Page 22
20
west
In the West, it’s California or bust.
Overall, 35 banks out of the 300 on Bank
Director’s RankingBanking call the Golden State
home. According to data from the FDIC, there
were 119 institutions headquartered in California.
9%
21%
32%
Percent of U.S.
banks headquartered in the West
Percent of banks in
RankingBanking
Percent of banks
in top 25
That means almost 30% of the state’s banks
made the list. California institutions also accounted for seven (28%) of the 25 top performers.
In general, California banks enjoy lower-cost
Only one Western bank from outside of California,
deposits, which help to boost the bottom line,
the $65.4 billion Columbia Banking System in
says A.J. Antongiovanni, CEO of the $2 billion
Tacoma, Washington, was a top performer.
Mission Bancorp in Bakersfield, California. The
California frequently surpasses Japan as the
West had the lowest median cost of deposits for
fourth largest economy in the world by gross
community banks out of the five different regions
domestic product and offers a variety of indus-
S&P examined. Antongiovanni touts Mission’s
tries — everything from technology to agriculture
customer service, in part, for its success. “It is a
to manufacturing — providing a diverse range
focus on providing a level of banking to business
of lending opportunities for banks. “It is a mini
owners that they don’t get at the largest institu-
version of the U.S.,” says Christopher Thornberg,
tions,” he adds.
founding partner at Beacon Economics. “It has an
To be sure, there are downsides to doing busi-
enormous tech sector that does stand out. Beyond
ness in California, namely regulations, Anton-
that, it has a little bit of a concentration of every-
giovanni says. This extends beyond issues specific
thing similar to the U.S. overall.”
to banking and can affect other areas, such as
Thornberg adds that California has high levels of
employment law. For instance, in California, it is
consumer debt, but the state’s residents also boast
easier for employees to file class action lawsuits
better than average levels of income, leading to
for what could be deemed frivolous issues, he
lower loan delinquency rates. Overall, the Western
adds. Crime and homelessness are also significant
U.S. had the highest median household income.
in major cities in California and other Western
California has had remarkably strong credit
cities, such as Portland, Oregon. “I think it is a
quality since the financial crisis, despite the re-
problem for everyone,” Antongiovanni says. “We
gional bank failures in 2023, Thornberg says.
deal with it not just from a bank standpoint but
Outside of California, other western states offer
just as a community member. Our people live here,
their own contributions to the region’s economy.
our local businesses are here. We all go to the
For instance, Phoenix, Arizona, has a growing mi-
same schools and churches.”
crochip manufacturing industry, Las Vegas is well
known for its gaming, and Wyoming has a bustling
energy sector, Thornberg says. Retirees flock to the
Southwest for the weather.
