Capital Performance Group conducts the rankings analysis using data provided by S&P Global Market Intelligence. Financial data is based on SEC filings. If SEC data was unavailable, regulatory financials were used. Data is for the 12 months ended Dec. 31, 2021, unless otherwise indicated. The banks were ranked on three-year return on average equity between 2019 and 2021; tiebreakers as follows: 2021 ROAE, 2020 ROAE, 2019 ROAE (in that order).
ROAE is defined as net income as a percent of average equity. Net income is defined as net income after taxes, minority interest, and extraordinary and other after-tax items. Noncontrolling interest may be included, per relevant accounting standards. Excluding criteria that would prevent a financial institution from being considered in the rankings include:
- Institutions with a leverage ratio of less than 5%, or a Tier 1 risk-based capital ratio of less than 6%, or a total risk-based capital ratio of less than 10% during any quarter between 2019 and 2021;
- Institutions that received a tax benefit of greater than 10% of net income in any year between 2019 and 2021;
- Institutions whose regulatory charter type is an industrial bank;
- Institutions that did not report SEC or regulatory data at year-end for any year between 2019 and 2021; and
- Institutions that operated as a subchapter S corporation during any quarter between 2019 and 2021