SBNY - INBK - OZRK - another view

I read somewhere that in evaluating banks for purchase, you need to look at Net Interest Margin, Return on Equity, Efficiency Ratio and Non Performing Loans percentage and trend.

Banks seem to be an oddball choice in the high price appreciation field and I have been intrigued by Saul’s selection of them. I decided to compare some numbers on the two banks regularly mentioned here as well as Bank of the Ozarks with which I am familiar.

Here are the quarterly figures for SBNY, INBK and OZRK:

                             SBNY          INBK         OZRK
Net Interest Margin               3.14          2.42         5.02
Return on Average Assets          1.10*          .81         1.92
Return on Equity                  9.21         10.85        12.62
Efficiency Ratio                 31.25         58.69        34.27
Non Performing Loans %             .54           .09          .15 
  • I could not find a statement about SBNY’s return on average assets in its last quarterly announcement. I took this figure from other sources.

I think INBK’s current high efficiency ratio and low Net Interest Margin, relative to the other banks, would make it the last choice among these three banks.