BankThink: Across asset classes, the top-performing banks aren’t those you’d expect

By Claude Hanley and Emma Metzler

There’s often speculation about the “optimal” asset size for a community bank, with many leaders assuming that bigger automatically means better. However, an insightful annual analysis from Capital Performance Group and American Banker shows that top performance isn’t just about asset size.

In fact, their study revealed that the highest performers—based on return on average equity over three years—often skew smaller than their peers. In 2023, many banks with assets between $2 billion and $10 billion and even those in the $10 billion to $50 billion range outperformed their larger counterparts.

The takeaway: True success comes from strategy and execution, not just scaling up. Quality can outshine quantity!

Read the full article on American Banker.