By Zain Tariq, S&P Global Market Intelligence staff writer
Banking industry stock valuations have continued to increase in 2017. As of Feb. 28, the median price-to-tangible book value ratio for major exchange-traded U.S. banks and thrifts was 184.6%, up 18.8 percentage points from SNL's last quarterly analysis on Nov. 30, 2016.
Birmingham, Ala.-based ServisFirst Bancshares Inc. replaced Conway, Ark.-based Home BancShares Inc. at the top of the charts with a P/TBV ratio of 431.1% as of Feb. 28. The company's stock has more than doubled over the last year.
Home BancShares slid to No. 2 with a P/TBV ratio of 425.7%. Home completed two acquisitions during the last two weeks of February—Fort Lauderdale, Fla.-based Giant Holdings Inc. and Sarasota, Fla.-based Bank of Commerce—and plans to pursue more.
During the company's Jan. 19 fourth-quarter earnings call, Home BancShares' chairman, John Allison, said: "So we're on several transactions and I expect us to be a little more aggressive. Our currency's held up pretty good. We're still trading at 4-plus book, so I think you'll see us active in 2017 and 2018."
Sioux Falls, S.D.-based Meta Financial Group Inc. was the fourth-most highly valued stock in the country on a P/TBV basis as of Feb. 28, up from No. 17 in November's analysis.
Between the end of November 2016 and February 2017, Meta's stock actually lost 5.75%, but its tangible book value per share fell by 32.1% between the third quarter and the fourth quarter so Meta's overall P/TBV ratio surged to 399.4%, up from 291.8% in SNL's last analysis.
Four new companies—Irvine, Calif.-based Pacific Premier Bancorp Inc.; Kalispell, Mont.-based Glacier Bancorp Inc.; Beverly Hills, Calif.-based PacWest Bancorp; and U.S. Bancorp—joined the top 25 list in February, replacing Charleston, W.Va.-based United Bankshares Inc.; Rockland, Mass.-based Independent Bank Corp.; Bethesda, Md.-based Eagle Bancorp Inc.; and Columbia, S.C.-based South State Corp. from the November analysis.
This article originally appeared on S&P Global Market Intelligence’s website under the title, "US banks and thrifts with the highest P/TBV ratios"
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