Georgia Banks

Georgia banks posted a return on assets of 1.47% in Q1 2026, up 6 basis points from 1.41% a year earlier and stable at 1 basis point from 1.46% in Q4 2025. The year-over-year gain marks the continuation of a profitability expansion visible across the series; the quarter-over-quarter stability suggests the expansion is decelerating. At 28 basis points above the national benchmark of 1.20%, Georgia institutions lead the broader FDIC-insured universe on ROA, driven by a combination of net interest margin strength and expense discipline.

Net interest margin at 4.36% narrowed 4 basis points from 4.40% in Q4 2025 but widened 10 basis points from 4.26% a year earlier. The year-over-year expansion outpaces the quarter-over-quarter contraction, indicating the NIM trajectory is decelerating but not reversing. Georgia's NIM of 4.36% leads the national 3.82% by 55 basis points, a substantial spread that reflects the cohort's loan-portfolio mix and deposit-pricing discipline. The efficiency ratio rose to 60.24% from 59.86% QoQ (up 38 basis points) but improved from 61.55% YoY (down 1.31 percentage points). The year-over-year efficiency gain signals improving operating leverage; the quarter-over-quarter uptick suggests seasonal expense pressures or revenue-mix volatility in Q1. At 60.24%, Georgia banks operate 3.90 percentage points below the national efficiency ratio of 64.14%, indicating stronger expense control relative to the broader industry.

Specialization dynamics are visible in the detected-stories block. Mortgage specialists posted an efficiency ratio of 76.96%, 12.81 percentage points above the national 64.14%, reflecting the capital-intensive, lower-margin nature of mortgage banking. Credit Card specialists, by contrast, posted an efficiency ratio of 54.43% (9.71 percentage points below national) and a NIM of 13.80% (9.99 percentage points above national), consistent with the high-margin, low-operating-cost profile of that specialization. Agricultural specialists at 59.51% efficiency and Commercial specialists at 64.09% cluster near the national average. The profitability posture is strong: ROA leads nationally, NIM expansion is decelerating but still positive, and efficiency improved year-over-year despite a modest quarterly uptick.

Asset growth among Georgia banks reached 7.46% in Q1 2026, accelerating from 6.82% in Q4 2025 (up 9.33 percentage points in the growth rate) but decelerating from 7.58% a year earlier (down 1.66 percentage points). The quarter-over-quarter acceleration marks a sharp rebound in balance-sheet expansion; the year-over-year deceleration indicates the pace of growth is moderating from the prior-year peak. At 7.46%, Georgia asset growth runs 2.30 percentage points above the national benchmark of 5.15%, positioning the cohort among the faster-growing segments of the FDIC-insured universe.

Loan growth at 9.36% accelerated from 9.06% in Q4 2025 (up 3.23 percentage points) but decelerated from 9.44% a year earlier (down 0.93 percentage points). Deposit growth at 6.94% accelerated more sharply from 5.86% QoQ (up 18.35 percentage points) but decelerated from 7.76% YoY (down 10.64 percentage points). The QoQ acceleration in deposit growth outpaced the QoQ acceleration in loan growth, mechanically compressing the loan-to-deposit ratio despite both portfolios expanding. Year-over-year, loan growth of 9.36% exceeds deposit growth of 6.94% by 2.42 percentage points, which mechanically lifts the loan-to-deposit ratio over time. Georgia loan growth of 9.36% leads the national 6.20% by 3.16 percentage points; deposit growth of 6.94% leads the national 5.02% by 1.92 percentage points.

The growth posture is robust across both funding and lending portfolios, with Georgia banks expanding faster than the national average on all three dimensions. The quarter-over-quarter acceleration in both asset and deposit growth suggests renewed momentum in Q1 2026 after a softer Q4 2025. The year-over-year deceleration in both loan and deposit growth, however, indicates the cohort is growing off a higher base and the pace of expansion is moderating from the prior-year peak. If the current quarterly pace of loan growth (9.36% annualized) holds, Georgia loan portfolios will expand roughly 10% over the next four quarters, sustaining the cohort's position as a faster-growing segment of the FDIC-insured banking universe.

Delinquency among Georgia banks stood at 0.67% in Q1 2026, stable at 1 basis point from 0.66% in Q4 2025 but up 22 basis points from 0.45% a year earlier. The year-over-year rise marks a normalization from the exceptionally low 0.45% level a year earlier; the quarter-over-quarter stability suggests credit quality is plateauing rather than deteriorating further. At 0.67%, Georgia delinquency sits 3 basis points below the national benchmark of 0.70%, indicating credit performance slightly better than the broader FDIC-insured universe despite the year-over-year uptick.

The nonperforming-asset ratio at 0.43% declined 2 basis points from 0.45% in Q4 2025 but rose 9 basis points from 0.34% a year earlier. The quarter-over-quarter improvement suggests recent problem-loan resolution or write-down activity; the year-over-year rise parallels the delinquency trend and reflects normalization from an unusually low base. Georgia's NPA ratio of 0.43% sits 8 basis points below the national 0.51%, consistent with the delinquency gap. Tier 1 capital declined to 15.65% from 15.85% in Q4 2025 (down 20 basis points) and from 15.87% a year earlier (down 23 basis points). The year-over-year decline is modest and reflects balance-sheet growth outpacing retained-earnings accretion; at 15.65%, Georgia banks hold Tier 1 capital 1.39 percentage points above the national 14.26%, a substantial cushion.

The risk posture is sound. Delinquency and NPA ratios remain below national benchmarks, and both metrics are stable or improving quarter-over-quarter despite year-over-year normalization from exceptionally low prior-year levels. Tier 1 capital at 15.65% provides ample loss-absorption capacity even after the modest year-over-year decline. Specialization dynamics are visible: Credit Card specialists posted delinquency of 2.57%, consistent with the higher-risk profile of unsecured consumer lending, while Agricultural specialists at 0.63% and Commercial specialists at 0.72% cluster near the cohort average. If delinquency holds stable at the current 0.67% over the next four quarters, Georgia banks will remain below the national average and well within historical norms for credit performance.

Georgia banks maintained a loan-to-deposit ratio of 71.10% in Q1 2026, down 26 basis points from 71.36% in Q4 2025 but up 1.92 percentage points from 69.18% a year earlier. The year-over-year rise marks a gradual shift toward higher loan deployment; the quarter-over-quarter decline reflects deposit growth outpacing loan growth in the most recent period. The ratio remains 5.28 percentage points below the national benchmark of 76.38%, indicating Georgia institutions retain a liquidity cushion relative to the broader FDIC-insured universe.

Deposit growth at 6.94% accelerated sharply from 5.86% in the prior quarter (up 18.35 percentage points in the growth rate), while loan growth at 9.36% accelerated more modestly from 9.06% (up 3.23 percentage points). The mechanical result: deposits grew faster than loans QoQ, compressing the loan-to-deposit ratio despite both portfolios expanding. Year-over-year, however, loan growth at 9.36% outpaced deposit growth at 6.94%, which mechanically lifted the ratio. Noninterest-bearing deposit share declined to 26.76% from 27.08% QoQ and from 27.33% YoY, a 57-basis-point annual erosion. Despite the decline, Georgia banks' noninterest-bearing share of 26.76% remains 5.16 percentage points above the national 21.60%, suggesting a deposit franchise still weighted toward operational and transaction accounts.

Net interest income as a percentage of revenue stood at 0.21% in Q1 2026, down sharply from 0.89% in Q4 2025 (a 68-basis-point decline) but stable year-over-year at 1 basis point. The metric sits 11 basis points below the national 0.32%. The quarter-over-quarter volatility likely reflects seasonal revenue-mix dynamics rather than a structural shift, given the year-over-year stability. The engagement posture is mixed: strong loan and deposit growth with a liquidity-rich balance sheet, offset by gradual erosion in the noninterest-bearing deposit base as rate-sensitive depositors migrate to interest-bearing instruments.