Banks across the industry had a strong year in 2025, but the best-performing institutions with $10 billion to $50 billion in assets distinguished themselves by doing more than simply growing. They protected profitability as interest rates declined, maintained stronger margins and demonstrated the value of disciplined, profitable growth.
Capital Performance Group analyzed the results for American Banker, ranking institutions based on their three-year average return on average equity, or ROAE. One of the clearest differences between the top performers and the broader peer group was funding. The top 10 banks held a greater share of lower-cost demand deposits, giving them a more favorable source of funding for loans and helping them preserve net interest margins as rates fell.
That advantage showed up clearly in the numbers. While the average net interest margin for all banks in the $10 billion to $50 billion asset group was 3.35%, the top 10 averaged 3.88%. According to CPG Founder and Partner Claude Hanley, the results reinforce an important lesson: top performance is driven not simply by growth, but by profitable growth and the ability to protect margins through changing economic conditions.
The leading banks also demonstrated their ability to navigate a challenging rate environment. Even as the Federal Reserve reduced interest rates by 75 basis points, top performers were able to preserve yields on earning assets while keeping expense growth roughly in line with the broader group.
The ranking highlights how strong funding strategies, disciplined balance-sheet management and consistent execution can separate top-performing banks from their peers—even when the operating environment shifts.
See the full rankings on American Banker. Visit our Strategic Planning practice area to learn more about how we help banks succeed.
