2012 Bankers to Watch
Once a favorite of investors, the $51 billion-asset thrift company had a rough 2011 as problem loans spiked and persistently low interest rates battered its investment portfolio. With Hudson Citys shares down more than 50% from their 52-week high, Hermance's challenge in 2012 will be to regain investors' confidence. (Image: Bloomberg News)
Capital One struck two big deals in 2011 and both came under attack from community activists who argued that they will create another too-big-to-fail bank with a mixed CRA record. Most observers expect the acquisitions of ING Direct and the credit card portfolio of HSBC Bank to win regulators approval, but the test for Fairbank will be winning the publics approval.
A longtime California banker, Gordon raised $460 million to recapitalize the ailing Bay Cities National Bank in 2010, and hasn't slowed down since. He renamed the bank Opus, struck two sizeable deals including one for Cascade Bank near Seattle began opening de novo branches and raised another $100 million to use for future acquisitions. Will the $2 billion-asset Opus be the West Coast's next breakout bank?
Mooney made history in 2011 by becoming the first female CEO of a top 20 U.S.-based bank. Ultimately, though, she will be judged not by her gender, but by her ability to deliver results and shes off to a strong start. In Mooneys first two quarters as CEO, Keys earnings were up 120% over the same periods in 2010.
Signature has been a standout in recent years, thanks largely to Depaolos strategy of stealing teams of commercial lenders from rival banks. But residential mortgage-backed securities account for more than 40% of the New York banks assets and some have speculated that its string of record-setting quarters could come to a halt as yields on the securities plummet. Depaolos test in 2012: growing the loan book enough to offset diminishing yields on securities.
Since August 2009, Iberiabank, of Lafayette, La., has acquired five failed banks and two healthy banks, more than doubling its assets to nearly $12 billion and expanding its reach into new markets in Florida, Tennessee and Alabama. But dont expect Iberiabank to take much of a breather. Byrd estimates that as many as 200 banks in the Southeast could fail over the next few years and Iberiabank intends to be an active bidder for banks in markets it views as attractive. The goal: to build a regional franchise that stretches from Virginia to Texas.
Hassell became CEO of the worlds largest custody bank after Robert Kelly unexpectedly resigned in August, and quickly announced a series of moves that would trim overhead by up to $700 million over the next four years. But investors griped that the cuts werent aggressive enough and further punished a stock that has lost roughly one-third of its value since January. Still, expenses can only be cut so much and Hassells big challenge in 2012 will be growing revenues in a low-interest climate. Also likely to keep him up nights are lawsuits that accuse the venerable bank of defrauding state pension funds on foreign currency exchange trades. (Image: Bloomberg News)
Flynns biggest accomplishments in his second full year as CEO were returning the Green, Bay, Wis., company to profitability and raising roughly $200 million it needed to exit TARP. Flynn says capitalizing on the disruption of rival M&I Bank's merger with BMO Harris Bank will be a top priority in 2012. Also on his to-do list: figuring out how to recover an estimated $18 million a year in lost revenue as a result of new caps on interchange fees.
Kanas' noncompete agreement with Capital One Bank expires in August, freeing the longtime New Yorker to expand the Miami bank's reach into more familiar territory. Flush with capital from its recent public offering, BankUnited has already struck one deal in New York, for Herald National Bank, and thats likely just the start. Kanas wants to open as many as 20 branches in the New York area over the next few years. (Image: Bloomberg News)
After 12 consecutive money-losing quarters, Citizens Republic in Flint, Mich., surprised market watchers when it reported healthy profits in the second and third quarters. Nash deserves much of the credit for the turnaround, but she faces a big test in keeping the momentum going in the economically challenged upper Midwest.
The past year was a mixed bag for banks. Some found success in picking up market share, or in finally putting federal bailouts into rear view. Others encountered fresh challenges, from run-ins with regulators to the realities of a still-fragile economic recovery. Here are 10 bank CEOs worth watching in 2012.
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