188-year-old Mass. bank tops 2021 large community bank r Research & Analysis RESEARCH & ANALYSIS
Tuesday, March 22, 2022 3:04 PM ET 188-year-old Mass. bank tops 2021 large community bank rankings By Zain Tariq and Zuhaib Gull Market Intelligence
by By Zain Tariq and Zuhaib Gull, Market Intelligence
Founded in 1834, Hingham, Mass.-based Hingham Institution for Savings took the gold in S&P Global Market Intelligence's 2021 Founded in 1834,bank Hingham, large U.S. community ranking.Mass.-based Hingham Institution for Savings took the gold in S&P Global Market Intellig
U.S. community bank ranking.
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cards, a leverage ratio of at least 5%, no active severe enforcement action, a result other than "substantial To compile this ranking, S&P Global Market noncompliance" or "needs to improve" in the bank's Intelligence calculated scores S&P for each company To compile this ranking, Global Market Intelligence most recent CRA exam, a yield on loans and leases based on six metrics: return on tangible calculated scorespretax for each company based on six of metrics: no more than three times the industry median of common equity;on efficiency ratio; operating revenue pretax return tangible common equity; efficiency5.05%, ratio; and no more than half of the entity's revenue growth; net charge-offs to average loans and leases operating revenue growth; net charge-offs to average coming from nontraditional banking activities. net of Paycheck Protection Program loans ratio; non Additionally, industrial banks, companies with a loans and leases net of Paycheck Protection Program performing assets and loans 90 days or more past due bankers' loans ratio; nonperforming assets and loans 90 days or bank certification, and banks with parent as a percentage of total assets, net of PPP loans; and companies more past a percentage of total assets, net of PPP above $10 billion in total assets, adjusted leverage ratio.due Eachas company's standard deviation for the exclusion of PPP loans, were omitted. loans; leverage Each company's from the and industry mean ratio. was calculated for every standard ranking metric, weighted, then combined derive deviation from the industry mean wastocalculated for every Based on the above criteria, 191 top-tier banks a ranking performance score. To help normalize the data and metric, weighted, then combined to deriveand a thrifts were eligible for ranking. Hingham mitigate the impact of outliers, and floors performance score. To helpcaps normalize thewere data and outperformed the top 50 median in all six of the applied for each metric. mitigate the impact of outliers, caps and floors were metrics analyzed, and its 20.82% efficiency ratio applied for each metric. was the lowest efficiency ratio among all 191 banks Criteria for the ranking included a gross loans and eligible for the ranking. leases to total assets ratio, net of PPP loans, of at least Criteria formore the ranking included gross loans and leases25% with no than half of those a loans in credit
to-total assets ratio, net of PPP loans, of at least 25% with no more than half of those loans in credit cards, a • 18 • • May-June 2022 leverage ratio of at least 5%, no active severe
