Bradway Research LLC developed a universal profit score analysis to rank all banks and thrifts in the U.S. 
This profit scoring methodology establishes a level playing field for evaluating and ranking all banks and thrifts, regardless of their size. This profit scoring methodology was used to evaluate 149 pure de novo banks and thrifts that were started in 2002 and 2003. Twenty of these 149 institutions ranked in the 1st quartile out of 7,430 banks and thrifts of all sizes. The report includes an analysis of the business strategies and key operating metrics for these high-performing de novo banks and thrifts, based in part on the results of executive interviews with 19 of the 20 institutions.
Key operating characteristics of the 20 high-performing de novo institutions included, but were not limited to, superior net interest margins and low operating ratios. Net interest margins for these 20 de novos are higher due to loan portfolio yields, which were frequently tied to a niche lending strategy. A lack of branches was not a constraint as all 20 of the de novo institutions have fewer than 5 branches. Fiserv led a group of six core banking technology vendors that serve these 20 de novo institutions.
Geographic diversity is well-represented by the de novos founded during these two years. The top 20 de novos were distributed across 14 states. Only Texas (4), Arizona (2), California (2), and Georgia (2) had more than one top-performing de novo. The other 10 states represented with a top 20 de novo institution include: Colorado, Florida, Illinois, Kentucky, Michigan, Missouri, Oregon, Utah, Virginia, and Wyoming. Table A lists these 20 high-performing de novo institutions.
Key operating characteristics of the 20 high-performing de novo institutions included, but were not limited to, superior net interest margins and low operating ratios. Net interest margins for these 20 de novos are higher due to loan portfolio yields, which were frequently tied to a niche lending strategy. A lack of branches was not a constraint as all 20 of the de novo institutions have fewer than 5 branches. Fiserv led a group of six core banking technology vendors that serve these 20 de novo institutions.
Geographic diversity is well-represented by the de novos founded during these two years. The top 20 de novos were distributed across 14 states. Only Texas (4), Arizona (2), California (2), and Georgia (2) had more than one top-performing de novo. The other 10 states represented with a top 20 de novo institution include: Colorado, Florida, Illinois, Kentucky, Michigan, Missouri, Oregon, Utah, Virginia, and Wyoming. Table A lists these 20 high-performing de novo institutions.
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