NEW YORK, April 24, 2023 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a leading specialist investment bank to the financial services and fintech sectors, and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), is pleased to name 14 U.S. banking institutions to its coveted 2023 Bank Honor Roll.
The KBW Bank Honor Roll, which originated in 1984, represents an exclusive annual list of banking institutions demonstrating a consistently strong track record of earnings growth over the past decade. This year, 14 companies, just 4% of all banks screened, qualified for inclusion on the 2023 KBW Bank Honor Roll. This compares with 17 institutions who earned the distinction in 2022.
Eleven of the 14 2023 KBW Bank Honor Roll banks are returning members, including: 1st Source Corporation (SRCE), Associated Banc-Corp (ASB), Axos Financial, Inc. (AX), BancFirst Corporation (BANF), First Financial Bankshares, Inc. (FFIN), Greene County Bancorp, Inc. (GCBC), Lakeland Financial Corporation (LKFN), Plumas Bancorp (PLBC), ServisFirst Bancshares, Inc. (SFBS), The First of Long Island Corporation (FLIC) and Western Alliance Bancorporation (WAL).
KBW is also pleased to welcome three new additions to the KBW Bank Honor Roll: Columbia Banking System, Inc. (COLB), First Bancorp (FBNC), and FVCBankcorp, Inc. (FVCB).
“Congratulations to this select group of banks and management teams for making the 2023 Honor Roll,” said KBW CEO Thomas B. Michaud. “Their consistency is impressive and it is notable how the market has rewarded their track record with better share performance and a higher share valuation.”
KBW Honor Roll banks have demonstrated consistent stock outperformance and have historically earned premium valuations. Honor Roll members rose 4.1% compounded annually for the five-year period ending in 2022, comparing favorably to both the KBW Nasdaq Bank Index (BKX) and KBW Nasdaq Regional Banking Index (KRX), which returned -1.1% and 0.6%, respectively, over the same time period.
At year-end 2022, KBW Bank Honor Roll members traded at 11.1x consensus 2023E EPS, a premium of 27% to BKX banks and 14% to KRX banks. Similarly, at year-end 2022, KBW Bank Honor Roll members traded at 1.8x book value, a 72% premium to BKX banks and 50% premium to KRX banks.
Christopher McGratty, KBW Head of U.S Bank Research, added, “KBW Honor Roll banks have set themselves apart from their peers with an ability to deliver consistent growth regardless of the operating environment. 2022 was a year of positive fundamental momentum for the banking industry highlighted by strengthening loan growth, net interest margin expansion, and continued strong credit quality – which collectively drove positive revisions to earnings estimates. We congratulate the 2023 KBW Honor Roll banks.”
About the KBW Bank Honor Roll
KBW Bank Honor Roll winners are publicly traded institutions with more than $500 million in total assets that consistently reported increases in earnings per share over the last decade. To account for the impact of the adoption of current expected credit loss (CECL) accounting on 2020 earnings, banks that met the annual earnings per share growth requirements for all years, save 2020, are eligible for inclusion if in 2020 they reported an annual profit and annual pre-tax, pre-provision net income per share growth.
About KBW
KBW (Keefe, Bruyette & Woods, Inc., operating in the U.S., and Stifel Nicolaus Europe Limited, also trading as Keefe, Bruyette & Woods Europe, operating in Europe) is a Stifel company. Over the years, KBW has established itself as a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. Founded in 1962, the firm maintains industry‐leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities securities of financial services companies.
Media Contact
Neil Shapiro, (212) 271-3447
shapiron@stifel.com
