Capital Performance Group conducts the rankings analysis using data provided by S&P Global Market Intelligence, which drew on Security and Exchange Commission filings. If SEC data was unavailable, regulatory financials were used. Data is for the 12 months ended Dec. 31, 2022, unless otherwise indicated. The banks were ranked on three-year return on average equity from 2020 to 2022; tiebreakers are as follows: 2022 ROAE, 2021 ROAE, 2020 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. Criteria that would exclude a financial institution from being considered in the rankings are:
- 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 2020 and 2022
- Institutions with an equity-to-assets ratio of less than 4.5% as of Dec. 31, 2022
- Institutions that received a tax benefit of greater than 10% of net income in any year between 2020 and 2022
- 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 2020 and 2022
- Institutions that operated as a Subchapter S corporation during any quarter between 2020 and 2022
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