Here is this year's list:
Here we are. The first crypto currency bank to crack the Top 5 and in the top position no less! Most of the price runup has been over the past year, where the stock increased 330% versus -16% for the S&P US BMI Banks Index. It's five year total return was a whopping 452%! And in terms of bank stock valuation, Silvergate is punching well above its weight at over 4x tangible book value and 58x latest twelve months earnings per share. This bank has over $2 billion in crypto deposits, and facilitates payments between crypto exchanges via its Silvergate Exchange Network, or SEN. With that type of valuation, investors foresee rapid growth, increased economies of scale that will ultimately result in superior financial performance. It's current performance for the third quarter of 1.13% ROA and 10.14% ROE doesn't merit the valuation, so growth and greater profitability must be what investors see. And there are positive profit trends. Take note, however, the bank grew over 20% year over year, so their current 10.4% leverage ratio combined with their internal profit generation tells me they will be extending the proverbial hat to investors for more capital to support their growth. And at those valuation numbers, who wouldn't? Here is an interesting Motley Fool discussion on the bank. Give Silvergate credit, they picked a niche and are executing on it to the delight of investors. Welcome to the Top 5!
#3. Fidelity D&D Bancorp, Inc. (Nasdaq: FDBC)
#4. Silicon Valley Financial Group (Nasdaq: SIVB)
#5. Bank First Corporation (Nasdaq: BFC)
Note: I make no investment recommendations in my blog. Please do not claim to invest in any security based on what you read here. You should make your own decisions in that regard. FINRA makes people take a test to ensure they know what they are doing before recommending securities. I'm sure that strategy works well.