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Forbes
5 hours ago
- Business
- Forbes
Introducing Reliability Rating: A Powerful New Way To Gauge Bank Health
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Our new grading system offers a clear, data-backed signal of a financial institution's strength. Our rating may have flagged vulnerabilities at Silicon Valley Bank and First Republic Bank before their failures. We found the 25 safest and 25 least safe banks and credit unions across the U.S. A total of 572 U.S. banks have failed since 2000, according to the Federal Deposit Insurance Corp. (FDIC), with three large regional banks closing in 2023, two banks in 2024 and two more this year. Given those headlines—and talk of recession, tariffs and stubborn inflation—it's only natural to wonder about the resilience and longevity of your own bank. That's why we developed Reliability Rating. Our proprietary model turns dense financial data into a simple letter grade, so you can see at a glance whether the overall financial health of your institution looks rock solid—or risky—before trouble starts. Moving forward, Forbes Advisor will assign letter grades to banks and credit unions, making it easier to spot the health of your institution at a glance. Reliability Rating is a data-driven scoring model that evaluates banks and credit unions on six key dimensions of financial health. Each category feeds into an overall score, with capitalization and liquidity weighted most heavily to reflect their importance in financial resilience. The rating is refreshed quarterly, using the latest FDIC and National Credit Union Administration (NCUA) call report data. Here's the methodology behind the score. To ensure we provide the most insight possible into your bank or credit union, our methodology is built to evolve and adapt to current economic conditions. We made it consistent enough for quarter-over-quarter comparisons, yet flexible enough to adapt to future economic changes and regulatory developments. Reliability Rating is on its way to becoming a core measurement in all of our 'best' lists—everything from top checking accounts to the highest-earning CDs—so you'll know the institutions we recommend not only offer great rates, but are built to last. Before launching the rating, we ran a retrospective stress test on two of 2023's most notable bank failures. The results are clear: Our rating would have flagged key vulnerabilities well before the collapse of these banks. Silicon Valley Bank would have landed in the bottom 10% of our ranking, receiving an F overall. Out of six categories, it received an F in two—growth and stability and account safety and insurance. It also did poorly in the liquidity category, receiving a C. These weak scores reflect its unusually high share of uninsured deposits and its rapid balance-sheet growth relative to industry norms. would have landed in the bottom 10% of our ranking, receiving an F overall. Out of six categories, it received an F in two—growth and stability and account safety and insurance. It also did poorly in the liquidity category, receiving a C. These weak scores reflect its unusually high share of uninsured deposits and its rapid balance-sheet growth relative to industry norms. First Republic Bank would have ranked in the bottom 10% of our Reliability Rating, penalized for its insured deposit ratio, liquidity and growth and stability. It received an F overall, an F in growth and stability and a D in account safety and insurance. In addition to the two banks above, we looked at Chicago's Pulaski Savings Bank, which failed and closed its doors on January 17, 2025. It received an F overall in our ranking, penalized heavily for its poor asset quality (F), earnings (F) and liquidity (D). Using our proprietary Reliability Rating, we've ranked the top 25 most reliable banks and credit unions in the U.S. today. We combed through roughly 3,900 FDIC-insured institutions, and only 125 banks cleared our 'A' bar this quarter. None reached the ultra-rare A+ level, but 11 scored a straight A while the remaining received a still-elite A-. Charles Schwab, Northern Trust Co. and Morgan Stanley Bank sit at the very top, each boasting A+ cushions in both capitalization and asset quality with strong scores in liquidity as well. In fact, every bank in the table scores at least A or A- for both capitalization and asset quality, two of the pillars closely tied to durability in a crisis, and most also earn A- or better for liquidity. Put simply, these 25 names boast solid capital, healthy loan books and deep cash buffers—the financial traits you want on your side if a recession hits. Whether a small community bank or larger institution, F-rated banks on our list share similar characteristics: weak earnings, a large share of uninsured deposits and aggressive growth without capitalization to match. None of the banks that earned an F on our list have collapsed, but they appear far less resilient than the A- and B-rated names at the top of our list. An F grade doesn't mean a bank will fail, but it does signal higher risk. It means you should think carefully before trusting that institution with your hard-earned money. Some of these banks may offer APYs, which could mean higher rewards but also higher risk. Fortunately, your money doesn't disappear when a bank or credit union goes under: Deposits are federally insured up to $250,000 per depositor, per institution by FDIC for banks and the NCUA for credit unions. Bank failures are still relatively rare. Still, it's tough to stomach the potential of locked-up funds, missed paychecks or frazzled nerves while the system sorts things out. Metropolitan Bank & Trust Co, Turtle Mountain State Bank and Vast Bank National Assn. sit at the bottom of our pack this round. Each carries an overall F, flunking at least two of our sub-categories. Though their loan books look clean, all three share dangerously low capital buffers and minimal growth. And Metropolitan Bank & Trust Co and Turtle Mountain State Bank both have heavy concentrations of uninsured deposits, leaving retail customers exposed. Here are the top 25 least safe institutions to keep your money: Reliability Rating is based on six critical metrics and emphasizes financial resilience and consumer protection. Retrospective testing shows the score would have highlighted significant red flags at failed banks like Silicon Valley Bank, Signature Bank and First Republic Bank, guiding consumers toward more stable options. The rating will be refreshed quarterly with the latest FDIC and NCUA data. The methodology is flexible, adapting over time to reflect evolving market conditions. If your bank fails, it can strand your uninsured funds, hurt your cash flow and potentially force you into inconvenient workarounds. The FDIC and NCUA guarantee only up to their insurance caps—anything beyond that limit is at risk if your institution proves unreliable. Here are a few things that can happen if your institution fails or is in serious distress. Loss of access to uninsured deposits. The FDIC and NCUA insure deposits up to $250,000 per depositor, per ownership category, per FDIC- or NCUA-insured bank. Funds you have deposited above that limit are at risk and could take several years to recover. Delayed access to funds. When a bank fails, the FDIC or NCUA (depending on where you bank) pays depositors up to the insurance limit, generally within a few days after the bank officially closes its doors. But depending on your case, it may take some additional time to process. Service interruptions and delayed payments. The FDIC typically tries to find an open bank to assume the responsibilities of the failed bank. If it happens quickly, you may not see any drop in service. If not, automated payments (e.g., direct deposit, bill pay) might be delayed or rerouted, leaving you to scramble to pay creditors. Required refinancing of loans. If you have a mortgage or a business loan at a failed bank, you'll be notified by the FDIC or NCUA that your service has been transferred and encouraged to seek a new lender to refinance your loan. The silver lining is that occasionally, the FDIC will offer an incentive to refinance by offsetting the closing cost on the refinance. Total loss if your bank isn't insured. Money held in nonbank payment apps—think Venmo, Paypal and Cash App—are typically not insured by the FDIC or NCUA. If these go under, you may have no way to get your money back. Savings:
Entrepreneur
6 days ago
- Business
- Entrepreneur
JPMorgan Worth More Than Citi, Bank of America, Wells Fargo
JPMorgan is worth more than Citigroup, Bank of America, and Wells Fargo all put together. JPMorgan Chase is far ahead of its rivals — but the bank is still running the race with an eye on its competition. In the first half of the year, JPMorgan's market value reached nearly $800 billion, more than the market values of its competitors Citigroup ($168 billion), Bank of America ($344 billion), and Wells Fargo ($260 billion) combined. In the same period, the bank raked in $30 billion in profit. According to a Wednesday Bloomberg report, JPMorgan was able to reach market value highs because it benefited from acquiring First Republic Bank in May 2023. The acquisition made the bank even larger and more powerful, allowing it to be the biggest bank in the U.S. with $3.9 trillion in assets at the time of writing. Related: JPMorgan Will Fire Junior Bankers Over a Common Practice That CEO Jamie Dimon Calls 'Unethical' Meanwhile, JPMorgan's competitors have been facing unique difficulties. For example, Wells Fargo's growth in recent years has been limited by an asset cap, or a growth restriction imposed on the bank by the Federal Reserve in 2018, which limits the bank's total assets to $1.95 trillion. The action was in response to a scandal involving the bank's creation of fake customer accounts to meet sales targets. The Federal Reserve finally lifted the asset cap last month. Citigroup, meanwhile, has been in the middle of a significant, multi-billion-dollar tech overhaul aimed at improving legacy software systems, and Bank of America has faced losses that could top $100 billion on its bond portfolio. Still, JPMorgan CEO Jamie Dimon isn't ready to "just declare victory," pointing out that the bank's rivals are gaining ground. "All of our major bank competitors are back growing and expanding," Dimon said on an earnings call on Tuesday. "We're quite cautious to just declare victory, like somehow we're entitled to these returns forever." JPMorgan CEO Jamie Dimon. Photographer: Patrick Bolger/Bloomberg via Getty Images JPMorgan reported its second-quarter results on Tuesday, marking the sixth consecutive quarter of stronger-than-expected earnings. Reported revenue for the quarter was $44.9 billion, higher than the revenue of $43.8 billion that analysts expected. The bank's net interest income, or the income it makes from loans and other products after interest payments, was $23.3 billion, up 2% year-over-year, while net income as a whole was $15 billion. Related: JPMorgan Chase Says AI Could Cut Headcount By 10% in Some Divisions: 'We Will Deliver More' JPMorgan's competitors are also reporting better-than-expected earnings. On Tuesday, Citi reported a net income of $4.02 billion, up 25% from the same period last year. The same day, Wells Fargo surpassed profit estimates with a net income of $5.49 billion, up from $4.91 billion a year prior. On Wednesday, Bank of America beat estimates on earnings, with a net income of $7.1 billion compared to $6.9 billion a year prior, but was the only major U.S. bank to miss the mark on revenue. JPMorgan shares were up over 19% year-to-date. Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.
Business Wire
14-07-2025
- Business
- Business Wire
Tri Counties Bank Expands Bay Area Presence with New San Francisco West Portal Branch, Opening in Late Summer 2025
CHICO, Calif.--(BUSINESS WIRE)--Tri Counties Bank announced the upcoming opening of a new branch in the heart of the West Portal neighborhood of San Francisco, California, at 279 West Portal Avenue. The new West Portal branch will provide local businesses and residents with even greater access to personalized financial solutions, backed by Tri Counties Bank's commitment to exceptional service and local decision making. "Our focus is to provide West Portal with a superior banking experience through personalized service and a full range of strategic financial solutions," said Scott Robertson, Senior Vice President and Head of Community Banking. 'Our focus is to provide West Portal with a superior banking experience through personalized service and a full range of strategic financial solutions,' said Scott Robertson, Senior Vice President and Head of Community Banking. 'Instead of traditional teller lines, the West Portal branch features five relationship desks where you can sit down with a banker who not only processes transactions but also gets to know you. They will suggest customized solutions based upon your specific needs, whether it be buying a home, saving for the future, or growing a business.' The new full-service West Portal branch will also offer dedicated customer parking, lobby hours from Monday – Friday 9 A.M. to 5 P.M., and night drop services. A walk-up ATM will be available 24 hours a day, seven days a week, featuring immediate credit on all cash deposits. It is expected to open in late summer 2025. It was formerly the site of a First Republic Bank branch. The new branch will be led by previous First Republic Bank employees, well known to the West Portal community: Anthony Cuadro, Managing Director of Private Banking Odette B. Dayans, Private Banking Team Lead Suzie Cay, Branch Manager Kim Lamb, Senior Business Banker Wendy Ng, Operations Administrator For more than 50 years, Tri Counties Bank has offered a comprehensive suite of financial solutions that rival those offered by larger banks, but with the flexibility and superior local service that customers deserve. Led by financial experts with deep ties to the community, the new branch will offer tailored financial products and services designed to meet both personal and business needs of the West Portal community. To learn more about the new West Portal branch, visit About Tri Counties Bank Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK), headquartered in Chico, California with corporate offices in Roseville, South San Francisco, and Bakersfield, with assets of nearly $10 billion and 50 years of financial stability. Tri Counties Bank is dedicated to providing exceptional service for individuals and businesses throughout California with more than 75 locations, advanced mobile and online banking, and access to approximately 40,000 surcharge-free ATMs nationwide. As California's Local Bank, Tri Counties Bank prioritizes serving clients with local bankers and local decision-making, backed by corporate philanthropy, community engagement, employee volunteerism and investments. Recognized by various publications as among the Top Workplaces and Best Banks, Tri Counties Bank recruits and retains diverse and talented team members. Visit to learn more. Member FDIC. Equal Housing Lender. NMLS #458732.
Yahoo
07-07-2025
- Business
- Yahoo
River City Bank Expands the Board of Directors With Addition of David Lichtman
Former First Republic Bank executive David Lichtman has been appointed to the Board of Directors for River City Bank SACRAMENTO, CA / / July 7, 2025 / River City Bank announced today that David Lichtman, former First Republic Bank executive, will be immediately joining the Board of Directors. Mr. Lichtman held various positions during his 37-year tenure at First Republic Bank. As a longtime leader in his role as Senior Executive Vice President and Chief Credit Officer, his responsibilities included credit administration and overseeing a loan portfolio exceeding $170 billion. "First Republic Bank had exceptional credit quality over a long period under David's leadership. With his extensive experience in banking and specific expertise in commercial lending in the San Francisco Bay Area, Mr. Lichtman will be an excellent addition to the RCB board," said Steve Fleming, President and CEO of River City Bank. "I am confident that he will be a valuable contributor in helping the Bank achieve its growth goals." "We are excited to welcome David to the board," said Shawn Kelly Devlin, chairman of the board at River City Bank. "The Bank will benefit from his expertise in the Northern California commercial lending market." Mr. Lichtman holds a bachelor's degree from Vassar College and an MBA from the UC Berkeley Haas School of Business. He is also a lecturer in real estate finance and development at the University of California, Berkeley. With a deep commitment to education and the youth in our community, he has served on the Board of Directors at Leadership High School, as a mentor with the Big Brothers Big Sisters of the Bay Area, and as a life-skills mentor to at-risk students at Megan Furth Academy. David currently serves on the Board of Directors at the Fort Mason Center for Arts & Culture. About River City BankAs a leading boutique commercial bank with assets over $5 billion, River City Bank is the largest, independent, locally owned and managed bank in the Sacramento region, with an office in San Francisco and a presence in Southern California. River City Bank offers a comprehensive suite of banking services with a tailored, concierge-like level of service, to redefine the banking experience. Please visit or call (916) 567-2600. Member FDIC. Equal Housing Lender. Contact Information Pamela Hansen VP/Director of Marketing and SOURCE: River City Bank View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
JPM Expanding Footprint to Serve Affluent Clients: Buy, Sell or Hold?
JPMorgan JPM is expanding its affluent banking services by opening 14 new J.P. Morgan Financial Centers across California, Florida, Massachusetts and New York. These new branches, many of which were formerly First Republic Bank locations, bring the total number of such centers to 16. JPM has plans to nearly double the figure by to offer a personalized, high-touch experience for affluent clients, these centers feature private meeting spaces and a refined environment. They cater to clients eligible for J.P. Morgan Private Client, offering dedicated support from Senior Private Client Bankers and access to JPMorgan's full suite of wealth management and banking expansion reflects JPM's strategy to deliver a premium, relationship-based banking experience that spans personal banking, lending and investment services. In addition to the new centers, the company operates 14 remote offices nationwide, enabling flexible support through Relationship Managers for clients preferring virtual initiative aligns with JPMorgan's broader effort to tailor its branch network to client needs, combining digital tools, expert guidance and an expansive physical footprint. With these new financial centers, the bank is setting a new standard in serving affluent boasts the largest branch network in the United States and is the only bank with a physical presence in all 48 contiguous states. Last year, it opened more than 150 new branches and is on track to reach its goal of launching 500 additional locations by 2027. This continued expansion underscores the company's commitment to nationwide accessibility and its confidence in the enduring value of in-person banking relationships. Given the tariff-related uncertainty, market participants are predicting two to three interest rate cuts in the back half of the year. As such, JPMorgan's NII is likely to face some 'headwind on an exit rate going into next year' as its balance sheet is highly company's NII witnessed a five-year (2019-2024) CAGR of 10.1%, mainly driven by the high-interest rate regime since 2022 and the acquisition of First Republic Bank in 2023. The momentum continued in the first quarter of 2025, driven by solid loan and deposit growth and higher revolving balances in Card Services. During the Investors Day conference on May 19, JPM's chief financial officer, Jeremy Barnum, said, 'The evolving tariff environment, combined with the preexisting geopolitical tensions, adds significant uncertainty into the economic outlook.' Despite this, he believes the company's NII could increase by $1 billion this year, but stopped short of making the change in the NII outlook of $94.5 billion (up almost 2% year over year) as it's too early to comprehend the actual impact of various macroeconomic headwinds. Of the total NII, almost $4.5 billion is projected to be generated from Markets JPM, its close peers – Bank of America BAC and Wells Fargo WFC – expect NII to grow this year. Bank of America anticipates NII to jump 6-7% year over year, while Wells Fargo expects the metric to grow 1-3%. JPMorgan's capital markets business (that includes investment banking or IB and markets) witnessed a robust comeback last year, with IB fees (in the Commercial & Investment Bank segment) jumping 37% year over year. In 2023, IB fees declined 5% and plunged 59% in 2022. Likewise, as trading volume and market volatility remained high in 2024, markets revenues benefited and grew 7%. Despite tariff-related ambiguity and extreme market volatility, the performance of the company's capital markets business was decent in the first quarter of 2025. However, near-term IB prospects are cloudy because of economic uncertainty, which will likely hurt JPM's IB business in the second quarter as deal-making activities have largely stalled. IB fees in the Commercial & Investment Bank (CIB) segment are expected to be down in the mid-teens range from $2.46 billion in the prior-year the other hand, JPMorgan's markets revenues are projected to grow in the mid-to-high single-digits range for the second quarter of 2025. This is likely to be driven by a significant rise in market volatility and higher client once there is a reduction in the level of uncertainty, JPMorgan is expected to capitalize on it, driven by a solid pipeline and origination of new activity. Also, the company will leverage its leadership position in the IB business (rank #1 for global IB fees in the first quarter of 2025) once the macro situation changes. Hence, JPMorgan's long-term outlook for the IB business remains strong. JPMorgan has been growing through bolt-on acquisitions, both domestic and global. In 2023, the company increased its stake in Brazil's C6 Bank to 46% from 40%, allied with (a financial technology firm focused on trade finance) and acquired Aumni. Also, the company acquired the failed First Republic Bank in 2023. The deal continues to benefit JPM's financials and even helped it reach record profits. Additionally, in 2022, it acquired Renovite and a 49% stake in Greece-based Viva Wallet and Global Shares. These deals, along with several others, are expected to support the bank's plan to diversify revenues and expand the fee income product suite and consumer bank actively seeks to expand its digital retail bank – Chase – across the European Union countries after launching it in the U.K. in 2021. The company is focused on bolstering its IB and asset management businesses in China. As of March 31, 2025, JPM had a total debt of $471.9 billion (the majority of this is long-term in nature). The company's cash and due from banks and deposits with banks were $425.9 billion on the same date. The company maintains long-term issuer ratings A-/AA-/A1 ratings from Standard and Poor's, Fitch Ratings and Moody's Investors Service, JPM continues to reward shareholders handsomely. In March, the company announced a 12% hike in its quarterly dividend to $1.40 per share. This followed an 8.7% increase in dividends in September 2024. In the last five years, it hiked dividends five times, with an annualized growth rate of 6.77%. Currently, the company's payout ratio is 27% of earnings. Similar to JPM, its peers – Bank of America and Wells Fargo – have been increasing their dividend payouts regularly. Bank of America raised its dividend four times in the last five years, while Wells Fargo has hiked it six also authorized a new share repurchase program of $30 billion, effective July 1, 2024. As of March 31, 2025, almost $11.7 billion in authorization remained available. JPMorgan's asset quality has been deteriorating. While the company recorded negative provisions in 2021, a substantial jump in provisions was recorded in the years after that because of the worsening macroeconomic outlook. The metric surged 169% in 2022, 45.9% in 2023 and 14.9% in 2024. Similarly, net charge-offs (NCOs) grew 117.6% in 2023 and 39.1% in 2024. The uptrend for both continued in the first quarter of interest rates are less likely to come down substantially in the near term, it is expected to hurt the borrowers' credit profile. The company remains vigilant about the effects of continuous high rates and quantitative tightening on its loan portfolio. Also, the impact of tariffs on inflation is to be seen. Hence, the company's asset quality is likely to remain company expects card NCO rates to be approximately 3.6% this year. For 2026, the metric is expected to rise year over year and be in the range of 3.6-3.9%. This year, shares of JPMorgan have rallied 10.7% against a 1.8% decline for the S&P 500 Index. Also, the stock has fared better than its peers – Bank of America and Wells Fargo. YTD JPM Price Performance Image Source: Zacks Investment Research From a valuation perspective, the stock appears slightly expensive relative to the industry. The stock is currently trading at the forward 12-month price/earnings (P/E) of 14.17X. This is above the industry's 13.35X, reflecting a stretched valuation. Price-to-Earnings F12M Image Source: Zacks Investment Research Also, JPM stock is trading at a premium compared with its peers – Bank of America and Wells Fargo. At present, Bank of America has a forward 12-month P/E of 11.32X, and Wells Fargo is trading at a forward 12-month P/E of 12.02X. Earnings estimates for JPMorgan for 2025 and 2026 have been revised upward over the past seven days. The positive estimate revision depicts bullish analyst sentiments for the stock. JPM's Earnings Estimates Trend Image Source: Zacks Investment Research Nonetheless, the Zacks Consensus Estimate for JPM's 2025 earnings implies a 7.1% fall year over year because of macro headwinds and higher non-interest expenses. Management anticipates non-interest expenses to be almost $95 billion this year, up from $91.1 billion in 2024. On the other hand, the consensus estimate for 2026 earnings suggests 5% growth. Earnings Estimates Image Source: Zacks Investment Research JPMorgan's strategic expansion, resilient capital markets business, strong dividend growth and fortress balance sheet position it well for long-term gains. However, macroeconomic headwinds, including potential rate cuts, deteriorating asset quality and rising non-interest expenses, pose near-term risks. While the stock trades at a premium valuation, upward earnings revisions and JPM's industry leadership justify a cautious buy for long-term investors. Those seeking stability, income and exposure to a diversified banking giant may find JPMorgan attractive, but should be prepared for short-term volatility due to economic uncertainty and elevated credit currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
