Banks Нancock Holding Company showed and Chemical Financial Corporation and Cullen / Frost Bankers this year profit of at least 43% (more than twice the average)
What little bank stocks show record profits, and that this happened quickly experiencing a deep decline. At least that’s what happened with the two banks out of three of the most successful banks in 2016.
So far this year was good for small financial institutions, as local banks index grew since the beginning of the year by 22%. Some showed Ntaija best, which banks Hancock Holding Company (NASDAQ: HBHC) and Chemical Financial Corporation (NASDAQ: CHFC) and Cullen / Frost Bankers (NYSE: CFR). “The worst,” including the Bank grew by 43%, that’s more than twice the average.
We decided to write today about the best banks for 2016 and the reasons for their success.
Banks, Gulf of Mexico
De Hancock Holding Company of about 200 branches along the Gulf of Mexico coast. When active US companies producing oil there enriched banks from lending to the energy sector.
These loans accounted for two years, 13% of banks’ bags ago, today has shrunk to 8.7% increase. However, it was created a large inventory during the year 2016 to meet the losses as they arise, and constitutes 8.6% of the volume of energy loans. In other words, the bank can spend about 9 cents per dollar nipped energy companies without being beyond your budget.
Of course things are not limited to possible losses in energy, as the price of commercial real estate in Houston depends on if this sector. In another conference with, the administration pointed out that there are good signs for the reimbursement of loans, but there is a negative impact of lower oil prices and prices of real estate agar.
Investors are looking at the energy loans like unsolved problem as their share, and the stock that has been collected, stock prices rose $ 38 (did not rise to this level since 2010). Securities grew during the year is 55% with almost AurumTech.
Chemical Financial Corporation owns brands Chemical Bank (which is not a former JPMorgan Chase (NYSE: JPM) and Talmer Bank and Wall Street Focus Group Trust, in addition to 255 branches in Michigan and Ohio and surrounding areas. Best Web Bank has in a small town in Michigan , including Midland and Clare and Bay City, the Bank’s share of deposits in these cities, 67% and 43% and 29%, respectively, before the last purchase, which bought out his opponent.
Chemical Financial Corporation was signed in the third quarter of the year a deal to buy Talmer Bank, which brought with it many customers in eastern Michigan and Ohio. The other two contenders Huntington Bancshares and FirstMerit Corp also united this year and adding the number of their branches in this region as well.
In the context of a telephone news conference the administration announced that the merger expenses will end in the second quarter of 2017 and will be able to operate the institution for the benefit of investors. Analysts predict that the end of the merger will be the company’s productivity index of 55% (ratio of expenses unrelated to the payment of the benefits of the stock), and this is a very good result for a local bank WikiTrader.
It is worth mentioning that the 2016 results were affected Rally banks after the election of Trump as president. After winning the company’s shares grew by 13%, while other banks got a 10% maximum. Altogether Shares Chemical Financial Corporation since the beginning of the year almost with 47%.
Shares of Cullen / Frost Bankers has increased almost by 100% compared with the minimum in 2001 and 43% compared with the beginning of the year. This is an oil bank for that price fluctuates papers based on oil prices.
Energy companies that were growing on the loan account is not in good conditions. Cullen / Frost announced that 12% of its loans are energy companies loans, in December 2015, this ratio was at 15.3%. The proportion of loans for commercial real estate in Houston amounted to 8% of the total volume of lending.
Loans are usually the most important in the work of any bank, but Cullen / Frost exception. His bags of precious loans and securities approximately equal, this could allow himself a large loan losses, compared with a normal bank. After calculating the largest losses for the second quarter of 2016, Cullen / Frost announced the cancellation of loans B0.74% index.
Cancellations declined in the third quarter of the year for 2016 to 0.17%, almost equal to the intermediate result in economic growth and high oil prices times. At the conference held to announce the results of the second quarter Legislators it announced that the time remaining to the end of the year will see a regular level of cancellation and this is what is happening now.
Testing conducted by the concerned authorities recently between good results showing that Cullen / Frost still owns well capitalized and returns good profitability on the back of a decline in the economy, may cause unemployment can reach 10%, and a decline in the financial market to 51% in commercial property prices 30 percent. Shares of Cullen / Frost Bankers this year due to increased inventory available and the growth of oil prices and the decline in the expected level of cancellations.