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The results of an exclusive survey measuring the reputations of 30 large U.S. banks are in, and if the rankings aren't surprising, the underlying findings might be.
May 14
It's a good thing for Joseph Ficalora that New York Community Bancorp
The chief executive of the Westbury lender has been telling investors and analysts that for years.
"We're one of the best-performing banks in the country," Ficalora said. "We do best in the worst of times — when other banks are most stressed we're actually doing better."
He said the results of a recent Reputation Institute survey of consumer views of bank reputations backs up that claim. New York Community, which has stayed profitable through the recession and never took any bailout money, ranked No. 1, ahead of SunTrust Banks and Ally Bank. Citibank came in last.
Ficalora attributes New York Community's strong showing to a few factors.
For one thing, it has largely been untouched by the subprime lending mess that hobbled so many other large banks. Its business model is built around using deposits and borrowed funds to make sound loans to the longtime owners of rent-controlled apartments in New York. Those borrowers are among the safest bets in banking because New York buildings tend to stay valuable — and occupied — through economic swings. Ficalora boasts that New York Community hasn't charged off a loan in its core New York book in some 30 years.
"When you look over the last two or three years … JPMorgan Chase has taken 800 basis points in losses. We've taken 20," Ficalora said. "Every quarter we're increasing our earnings. Year over year, our earnings were up 42%" in the first quarter.
New York Community took advantage of its earnings strength late last year to purchase the failed AmTrust Bank in Cleveland, which extended its reach out of the New York area for the first time into Florida and Ohio. Ficalora said the acquisition has further burnished his company's reputation, as it has been able to deliver some financial hope to depressed areas.
"They had 1,200 people that they laid off before we got there. … We're hiring more people," he said. New York Community is "distinguishable from the bank across the street. We're now a growing franchise in Florida. There are a lot of franchises that are about to collapse right next door."
