The Best and Worst Bank in 2023

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The Best and Worst Bank in 2023: Evaluating Credit Quality and Profitability


In 2023, the performance of banks varied significantly, with some thriving and others struggling to adapt to changing market conditions. Forbes, in its 14th annual ranking, assesses the credit quality and profitability of the 100 largest publicly listed U.S. banks and thrifts. In this article, we delve into the rankings, highlighting the best and worst banks based on these key parameters.

Evaluating Credit Quality and Profitability

Forbes’ rankings are based on nine parameters that evaluate credit quality and profitability. Among the top performers, CVB Financial, the parent company of Citizens Business Bank, secures the first spot for the third time in the last four years. On the other hand, some trillion-dollar banks find themselves at the bottom of the list due to various challenges.

The Best Bank: CVB Financial

CVB Financial, with assets worth $16.4 billion, focuses on assisting small and medium-sized enterprises. Its commitment to privately held, family-run businesses has earned them a strong reputation in the market. With just 60 locations, CVB Financial stands out as one of the most productive banks in the country. Their net profit witnessed an 11% increase last year, showcasing their financial strength and stability.

The Challenges Faced by Trillion-Dollar Banks

Trillion-dollar banks, including Wells Fargo, JPMorgan Chase, Citigroup, and Bank of America, faced a tougher year. Wells Fargo, with $1.9 trillion in assets, dropped to the 100th position. It struggled with an efficiency ratio of 72.6%, among the highest in the rankings. JPMorgan Chase slipped to the 70th position due to slow revenue growth and increased spending. Citigroup and Bank of America also faced challenges but managed to maintain relatively better positions in the rankings.

The Impact of Interest Rates and Revenue Streams

The revenue streams of banks experienced significant fluctuations, with some benefiting more than others. Regional banks, like CVB Financial, thrived due to higher interest rates. However, larger banks faced revenue shortages in the capital markets. The impact of these factors influenced the performance and rankings of the banks.

The Success Story of First Financial Bankshares

First Financial Bankshares, based in Abilene, Texas, emerged as the best-performing consumer-focused bank. It experienced accelerated growth during the pandemic, expanding its assets from $8.3 billion to $13.1 billion. The bank’s efficient operations, exemplified by its 43.8% efficiency ratio, contributed to its success. It has consistently remained profitable over its 133-year existence and continues to witness profit growth.

The Rise of Smaller Regional Banks

The trend of smaller regional banks dominating the rankings is evident with the success of CVB Financial and First Financial Bankshares. These banks have capitalized on their lean business models and focus on personalized customer service. Their strong financial performance and efficient operations have propelled them to the top of the list.


Evaluating the credit quality and profitability of banks provides valuable insights into their performance. While some banks excel, others face challenges in a constantly evolving market. CVB Financial and First Financial Bankshares stand out as examples of successful banks that prioritize customer service and maintain strong financial positions. The rankings highlight the dynamic nature of the banking industry and the importance of adapting to changing market conditions.

To view the complete list of America’s Best Banks, click here.

In this article, we have examined the best and worst banks in 2023 based on their credit quality and profitability. Each bank’s unique strengths and challenges shape its position in the rankings, offering valuable insights into their performance. Stay informed about the evolving landscape of the banking industry to make informed financial decisions.

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