As stated on the Washington State Department of Financial Institutions website and as displayed on IDC Financial Publishing, Inc.’s website, “IDC has a remarkable track record of identifying deteriorating or improving performance months, and sometimes years, before it becomes apparent to other ranking companies.” The following review of IDCFP rankings…
Investors and analysts measure the performance of bank holding companies by comparing return on equity (ROE) against the cost of equity capital (COE). If the ROE is higher than the COE, management is creating value. ROE less than COE, management destroys value. Value is measured by stock price to book…
In a previous article, the major bull market in bank stocks of 300%, from the first quarter of 1995 to year-end 2006, was driven by the widening spread between return on equity (ROE*) and the cost of equity (COE*), as defined by IDC Financial Publishing, Inc. (IDCFP). In the article,…
The major bull market in bank stocks (KBW Index, Ticker “BKX”) from the 1st quarter of 1995 to year end 2006 of 300% was driven by the widening spread between bank return on equity (ROE*) and the cost of equity (COE**), as defined by IDC Financial Publishing, Inc. (IDC). During…
Growth in estimated brokered CDs (brokered deposits excluding reciprocals and sweep accounts) is highly cyclical, reaching as high as 40% to 90% growth, during periods of 10% or more growth in loans with up to 20% growth in time deposits. Loan growth is currently 8%, but under Trump economics in the next few years, could…
