Charlottesville, Va. -
SNL Financial ranked the 100 largest thrifts based on six 2006 financial performance metrics. The following four categories received a 20% weighting: 1) core return on average assets; 2) core return on average equity; 3) three-year core cash EPS growth; and 4) efficiency ratio. The ratio of nonperforming assets, including loans 90 days past due, to total assets, and net charge-offs as a percent of total loans were each weighted at 10%.
Making noteworthy appearances were controversial mortgage lenders Downey Financial Corp. at No. 7, BankUnited Financial Corp. at the No. 9 spot (tied with Hudson City), and IndyMac Bancorp at No. 13.
"The rankings show how profitable it was to be in the mortgage business in 2006," said Maria Tor, senior analyst for SNL. "However, many of the companies that did so well in 2006 are now being punished in the stock market for possibly underwriting risky loans."
For info: www.snl.com.
