Mid-sized banks outperform larger banks; community bank profitability lags.
CPG analyzed bank performance for the twelve months-ended June 30, 2015, based on data from SNL Financial, LC. Banks were categorized by three asset tiers: Large Banks defined as those institutions with assets of greater than $10 billion; Midsize Banks ($1 billion and $10 billion); and Community Banks (less than $1 billion). To analyze industry performance, we examined a number of ratios and metrics including those related to profitability, yield, balance sheet and capital levels, asset quality, and growth. Comparisons for each group were for the twelve months-ended June 30, 2014, versus the twelve months-ended June 30, 2015.
For the past twelve months-ended June 30, 2015, the Midsize Banks group was the most profitable asset tier group, recording a median ROAE of 8.33%. Reasons why the Midsize Banks outperformed the other groups include:
This quarter’s Banking Industry Financial Performance Update is provided free of charge. To download the full report (PDF), please click here.