10 Who Had a Good Year in Banking
December 23, 2014 12:15 PM
These executives in 2014 began to realize their turnaround visions, handled tough tasks their companies threw at them, earned promotions or stuck their necks out on important matters.
Brian Moynihan<br><em>Chairman and CEO, Bank of America</em>
At first glance, 2014 looked to be another rough year for B of A's embattled boss. Revenue growth remained weak, and the $16.6 billion it agreed to pay to resolve lingering mortgage problems was the largest postcrisis settlement of its kind. Yet B of A's stock has risen more than 15% since the settlement was announced, an indication that shareholders believe that the bank is finally done paying for its past sins. And Moynihan, who at one time appeared to be on the hot seat, was given the additional title of chairman.
Image: Bloomberg News
Dan Schulman<br><em>President, Paypal</em>
The mastermind behind American Express' Bluebird and other prepaid ventures, Schulman is now tasked with reinvigorating PayPal. The payments firm named Schulman president in September and intends to appoint him CEO when PayPal is spun off from its parent, eBay, in 2015. It's a plum job, but he will have his work cut out for him trying to keep PayPal on the cutting edge at a time when the payments landscape is rapidly changing.
Jane Fraser<br><em>CEO of Mortgages, Consumer and Commercial Banking, Citigroup</em>
After successfully turning around Citigroup's private bank it was losing some $275 million a year when she took it over in 2009 Fraser was tapped last year to run Citi's massive mortgage operation, just as the refinancing boom was ending. Then, if that weren't a daunting enough job, Fraser was asked earlier this year to take on the additional title of CEO of consumer and commercial banking. Never one to back down from a challenge, Fraser accepted and now oversees many of Citi's top business lines, including consumer, commercial and small-business banking, along with wealth management and mortgages. Just 47, Fraser is clearly one of Citi's rising stars .
William Cooper<br><em>Chairman and CEO, TCF Financial</em>
Following the financial crisis, Cooper said that regional banks like TCF could not survive by lending locally, so he set out to transform Wayzata, Minn.-based TCF into a national specialty lender. It was a good move. Driven largely by growth in auto lending a business TCF was barely in three years ago profits at TCF climbed 25% in the third quarter from a year earlier, to $47.5 million. The bank is also carving out a niche in the marine, lawn-equipment, recreational vehicle and power sports industries, and such loans have helped it achieve loan yields and net interest margins that are comfortably above industry averages. "You're never done in terms of
constant reinvention," Cooper told analysts in July.
Trevor Burgess<br><em>President and CEO, C1 Financial</em>
C1 Financial, run by the former investment banker Burgess, made national headlines in March by promising a "living wage" to all its employees. The $1.5 billion-asset Florida company rewarded its earliest investors by going public in October, raising more than $43 million. While earnings are down compared to a year earlier, C1 has been able to make more loans, benefiting from a broad recovery in the Sunshine State.
James Herbert<br><em>Chairman and CEO, First Republic Bank</em>
Notwithstanding the sharp drop in stock price over the summer, 2014 has been another banner year for San Francisco-based First Republic Bank and CEO James Herbert. The bank's assets continue to grow at a double-digit clip they have more than doubled since 2010 thanks to surging loan demand, and its revenues from wealth management are up by roughly 33% since the end of 2013 as more and more wealthy depositors turn to First Republic to manage their money. The shares fell 15% after Herbert revealed in July that compliance costs would rise substantially as First Republic prepares to cross the $50 billion-asset mark , but by yearend they had returned to early-2014 levels. With the bank continuing to far outperform its peers, it's a good bet that the stock price will keep heading north in 2015.
Joseph DePaolo<br><em>President and CEO, Signature Bank</em>
Signature Bank, founded and headed by DePaolo, keeps on rolling . The New York bank has now reported record profits in 20 consecutive quarters and is showing no signs of slowing down. Loan, revenue and deposit growth continue to far outpace industry averages, and its mid-30s efficiency ratio is the envy of the industry. Investors have been richly rewarded by the bank's run of success. The stock, now trading at about $120 per share, is up 13% for the year and has roughly doubled since mid-2012.
Kelly King<br><em>Chairman and CEO, BB&T</em>
King put BB&T back on the M&A trail, showing a greater willingness than his peers to test regulatory attitudes toward acquisitions by large banks. The Winston-Salem, N.C., bank announced two of this year's biggest deals , agreeing to spend nearly $3 billion on Bank of Kentucky and Susquehanna Bancshares. His deal for the $18 billion-asset Susquehanna would thrust BB&T into several new markets in Pennsylvania and New Jersey, and adding Bank of Kentucky would boost its operations in Cincinnati.
Image: Bloomberg News
Daryl Byrd<br><em>CEO, Iberiabank</em>
Byrd also flexed his M&A muscles this year, after a quiet 2013. Iberia, based in Lafayette, La., committed more than $600 million this year to deals that would add $3.3 billion in assets in markets such as Dallas , Atlanta and Orlando, Fla . As long as he secures the approvals and manages the integration effort properly, 2014 could be looked back on as a banner year for Byrd's Southern expansion plans.
Anthony Weagley<br><em>President and CEO, Malvern Bancorp</em>
Talk about change. Anthony Weagley began 2014 as CEO of Center Bancorp in Union, N.J., which agreed in January to sell itself to ConnectOne Bancorp for $243 million. Weagley, who was supposed to become ConnectOne's chief operating officer, resigned when the deal was completed in July. He did not sit idle long, agreeing in September to lead Malvern Bancorp in Paoli, Pa. By yearend, he had impressed two of Malvern's activist investors so much that they lowered pressure on the company to sell itself.
