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Christian Hudspeth

The Top Five Hottest States for Banking In America

by Christian Hudspeth | Dun & Bradstreet Editor

August 25, 2015 | No Comments »

PennsylvaniaBanks continue to be plagued by the near-zero interest-rate environment, heavy lawsuits stemming from the financial crisis, and shrinking mortgage businesses as fewer consumers are refinancing with the threat of interest rate hikes on the horizon.

Not surprisingly, the FDIC’s latest annual banking profile found that revenue growth industrywide was basically nonexistent in 2014, even for most of the five largest US banks.

But averages don’t tell the full story. In fact, there are thousands of smaller banks in the US that are growing at least six times faster than average.

As I mentioned in a previous post, the roughly 6,100 financial institutions that the FDIC considers “community banks” have been enjoying booming mortgage, construction, and small business loan growth, and grew their top lines by more than 6% on average in 2014, while their profits rose by more than 9%, according to the FDIC’s latest Community Bank Performance report. Individually, some banks are growing their revenues by double digits.

So where are these trailblazers of the industry? Is there a trend as to where they’re coming from and what they look like? Top bank executives looking to acquire nimble and successful banks in fast-growing regions are dying to know. The same goes for entrepreneurs, investors, and others looking to share in some of the wealth.

Fortunately, there’s a way to find the answer to these questions. While no one has financial data on the vast majority of privately held banks in the US, I was able to use Hoover’s Build-A-List tool to track 289 US-based banks that grew their revenues last year (the latest data available), including 157 banks that boosted their annual revenues by 6% or more — faster than the community bank average.

Interestingly, just five US states were home to more than one-third of these banks. Here’s what I found:

1. California
Number of Banks With 6%-Plus Growth: 19

California’s Top Five Fastest-Growing Banks (2014)

Bank Name Revenue Growth Revenue ($M) Assets ($M)
Pacific Bancorp 138% 747 16,235
Banc of California 54% 334 5,972
Pacific Premier Bancorp 30% 95 2,039
Wilshire Bancorp 30% 205 4,155
Heritage Oaks Bancorp 26% 74 1,710

Source: Dun & Bradstreet, Hoover’s Build-A-List

2. New York
Number of Banks With 6%-Plus Growth: 11

New York’s Top Five Fastest-Growing Banks (2014)

Bank Name Revenue Growth Revenue ($M) Assets ($M)
Berkshire Bancorp 73% 26 767
Bridge Bancorp 23% 83 2,289
Signature Bank 22% 959 27,319
Chemung Financial Corp 16% 80 1,525
Safra National Bank of New York 16% 142 5,147

Source: Dun & Bradstreet, Hoover’s Build-A-List

3. Pennsylvania
Number of Banks With 6%-Plus Growth: 10

Pennsylvania’s Top Five Fastest-Growing Banks (2014)

Bank Name Revenue Growth Revenue ($M) Assets ($M)
Peoples Financial Services 61% 79 1,742
Customers Bancorp 43% 216 6,825
Tristate Capital Holdings 39% 110 2,847
Oak Quaint Bancorp 19% 9 156
CNB Financial Corporation 19% 101 2,189

Source: Dun & Bradstreet, Hoover’s Build-A-List

4. North Carolina
Number of Banks With 6%-Plus Growth: 7

North Carolina’s Top Five Fastest-Growing Banks (2014)

Bank Name Revenue Growth Revenue ($M) Assets ($M)
Yadkin Financial Corp 76% 163 4,266
Bank of The Carolinas Corp 22% 20 385
Newbridge Bancorp 19% 103 2,520
BNC Bancorp 13% 183 4,073
Select Bancorp 13% 29 766

Source: Dun & Bradstreet, Hoover’s Build-A-List

5. Texas
Number of Banks With 6%-Plus Growth: 7

Texas’ Top Five Fastest-Growing Banks (2014)

Bank Name Revenue Growth Revenue ($M) Assets ($M)
Independent Bank Group 57% 154 4,133
Prosperity Bancshares 32% 838 21,508
Texas Capital Bancshares 14% 557 15,900
First Financial Bankshares 11% 265 5,848
Cullen/Frost Bankers 8% 1,022 28,278

Source: Dun & Bradstreet, Hoover’s Build-A-List

There are a few more interesting tidbits I found on my screen. Overall, of the list of 54 fast-growing banks (defined as 6%-plus annual revenue growth) in these five US states, California and New York alone hosted 30 of such banks, including several banks with 20%-plus annual revenue growth.

The typical bank on this list boosted its annual revenue by a median of 20% — much faster growth than the industry average (which had zero growth in 2014) and nearly four times faster growth than the average US community bank. Additionally, banks on this list had a median annual revenue of $101 million and boasted total assets of $2.6 billion (or $9 billion in total assets on average).

All of this signals that community banks or smaller bank-holding companies are dominating in the current marketplace, as I found in a my previous post on the Fastest-Growing Banks In America.

Have you been noticing similar banking trends in your area or something entirely different? Please share your story with us in the comment box below!

Want to screen your own bank prospect targets like this? Take a look at the Hoover’s Build-A-List tool. The easy-to-use software lets you screen through more than 434,230 banks worldwide (and more than 90 million companies overall) and allows you to narrow your search by geography, employee count, growth, and dozens of other variables that give you the tools you need to be highly effective. Check out the video below to see how it works.


Christian Hudspeth is a company analyst for Dun & Bradstreet who researches and reports on more than 1,000 banks and financial firms for Hoover’s company database subscribers. Before joining Dun & Bradstreet, Christian was a managing editor, senior financial writer and analyst for a financial publishing company. His financial articles have been featured on MSN Money, Business Insider, Nasdaq.com, and several other well-known online publications. Before he was an editor, Christian worked in the commercial banking industry for seven years.

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