Bank brands in the southwest, Midwest continue showing strength.

• Position: MARKETING NEWS

WHILE THE ECONOMIC RECOVERY REMAINS UNEVEN throughout the country, the fact is that in certain regions banks have stabilized earnings and returned to steady deposit growth, a sign that these institutions have reestablished trust within their communities, notes Steve Reider, president of Bancography a financial services consulting firm in Birmingham, Ala.

Those institutions that remained committed to delivering a superior service and value proposition even in the down economy appear poised for growth as the recovery continues, he notes. "It is critical for financial institutions to stay on point with their messaging, whether expressed through advertising, service, or distribution channels, and those that maintain consistent brand identity will continue to enjoy positive financial results."

Reider made his remarks as the company released the results of its 2011 Bancography Brand Value Index, a quantitative ranking of the brand strength of all U.S. banks, thrifts and credit unions. The index ranks financial institution brands by the premium they add to each institution's underlying tangible value.

In calculating brand value, the company quantifies the proportion of each institution's long-term value that is attributable to the intangible factors that constitute an institution's brand. These factors include the institution's reputation, service quality, image and market awareness. The brand value index identifies institutions that produce financial results beyond what their capital base, market conditions and competitive environments would predict. The calculations reward institutions that display consistently strong earnings and a reasonable cost of funds.

Leading brands among the smaller banks ($500 million to S2 billion in assets) include Sabine State Bank and 'trust Co., La., an institution that did not meet the index's eligibility requirements in 2010; First National Bank Texas, last year's number one; Central Bank of Lake of the Ozarks, Mo., moving up from the "less than $500 million" asset tier; and Citizens Security Bank, Okla., maintaining its number four position. Five additional Texas banks rank in the top 10. Several of the top 10 banks moved up from the "less than S500 million" asset...