Idaho Banks

Return on assets reached 1.42% in Q2 2026, outperforming the national benchmark of 1.24% by 18 basis points. Net interest margin of 4.21% exceeded the national 3.87% by 34 basis points, while the efficiency ratio of 57.44% beat the national 63.11% by 5.67 percentage points. The cohort's profitability advantage is dual-sourced: superior interest-rate spread and tighter expense discipline. No quarter-over-quarter or year-over-year comparison data is available, so the analysis is limited to cross-sectional positioning against national aggregates; it is unclear whether the 18-basis-point ROA gap is widening, narrowing, or stable.

The profitability picture reflects two offsetting forces visible in the engagement metrics. Idaho banks' noninterest-bearing deposit share of 28.32%—6.73 percentage points above national—mechanically supports the 4.21% NIM by lowering the blended cost of funds. However, net interest income as a percentage of revenue sits at 0.23%, 43 basis points below the national 0.66%, indicating that NII contributes a smaller share of total revenue than at the typical bank. The cohort appears to generate meaningful noninterest income—fees, service charges, or other revenue—that diversifies the earnings stream beyond spread-based profitability. The efficiency ratio of 57.44%, well below the national 63.11%, suggests that noninterest expense discipline more than offsets any drag from lower NII concentration, allowing the cohort to deliver above-benchmark ROA.

Without time-series data, it is impossible to assess whether the profitability advantage is durable or cyclical. The 4.21% NIM is strong in cross-section but may face compression if the 28.32% NIB share migrates to interest-bearing products in future quarters. The 57.44% efficiency ratio positions Idaho banks in the top efficiency quartile nationally, but the lack of trend data leaves open whether this reflects structural cost discipline or temporary expense timing. If the current profitability metrics hold, the cohort's 1.42% ROA sustains a return on equity well above the cost of capital for most community and regional banks.

Asset growth reached 5.77% in Q2 2026, 60 basis points above the national benchmark of 5.17%, while loan growth of 8.72% exceeded the national 6.16% by 2.56 percentage points. Deposit growth of 6.13% outpaced the national 4.93% by 1.20 percentage points. The cohort expanded balance-sheet footings at a pace modestly ahead of the national aggregate, with loan growth notably stronger than deposit growth. No quarter-over-quarter or year-over-year comparison data is available, so it is unclear whether the growth rates are accelerating, decelerating, or stable; the analysis is limited to cross-sectional comparison.

The composition of growth reveals a tilt toward loan expansion. Loan growth of 8.72% outpaced deposit growth of 6.13% by 2.59 percentage points, mechanically compressing the loan-to-deposit ratio from an unobserved prior level to the current 74.07%. Despite the faster loan growth, the cohort's LDR remains 3.41 percentage points below the national 77.48%, suggesting Idaho banks entered the period with a lower deployment ratio and are now moving toward the national norm. Asset growth of 5.77%, slower than loan growth of 8.72%, implies that non-loan assets—securities, cash, or other holdings—contracted or grew more slowly, consistent with a deliberate shift in balance-sheet mix toward earning assets. The deposit growth of 6.13%, while above the national 4.93%, trails loan growth, raising the question of whether Idaho banks are funding incremental loan demand through deposit growth, securities runoff, or wholesale borrowing.

Without tier or specialization breakdowns for this ten-institution cohort, it is impossible to assess whether the growth is concentrated among Commercial specialists, Agricultural lenders, or other categories. The national FDIC data shows Credit Card specialists posting outsized NIM at 13.59% and Commercial banks at 3.97%; Idaho's 4.21% NIM suggests the cohort skews toward Commercial or Agricultural rather than Credit Card. If loan growth of 8.72% continues at the current pace and deposit growth holds at 6.13%, the loan-to-deposit ratio will rise approximately 2.6 percentage points annually, closing the gap to the national 77.48% within two years.

Delinquency reached 0.90% in Q2 2026, 19 basis points above the national benchmark of 0.71%, while non-performing assets stood at 0.53%, essentially in line with the national 0.52%. Tier 1 capital of 15.84% exceeded the national 14.26% by 1.58 percentage points. The cohort's credit-quality metrics show modestly elevated delinquency but stable non-performing assets, with a capital cushion well above national norms. No quarter-over-quarter or year-over-year comparison data is available, so it is unclear whether delinquency is rising, falling, or stable; the analysis is limited to cross-sectional comparison against the national aggregate.

The 19-basis-point delinquency gap warrants attention given the cohort's strong profitability and growth metrics. Delinquency at 0.90% sits in the top quartile of the national distribution but remains below the 1.00% threshold typically associated with stress. The near-parity between the cohort's 0.53% NPA ratio and the national 0.52% suggests that delinquent loans are not migrating to non-accrual status at an elevated rate, indicating either effective workout or recent loan seasoning that has not yet reached charge-off. The cohort's loan growth of 8.72%—2.56 percentage points above national—may explain part of the delinquency gap: faster loan origination mechanically raises the share of newly booked loans that have not yet seasoned through a full payment cycle. Without time-series data, it is impossible to assess whether the 0.90% delinquency reflects a structural portfolio-mix difference or a transient underwriting cohort.

Tier 1 capital of 15.84% provides a 1.58 percentage point buffer above the national 14.26%, positioning the cohort comfortably above the 10.5% well-capitalized threshold for most community banks. The capital cushion absorbs the modest delinquency elevation and supports continued loan growth without immediate dilution risk. The national FDIC data shows Agricultural specialists at 0.66% delinquency and Commercial banks at 0.70%; Idaho's 0.90% suggests either a higher Agricultural or Commercial Real Estate concentration, or exposure to a sector not dominant in the national mix. If delinquency holds at 0.90% and the cohort continues loan growth at 8.72%, the Tier 1 capital ratio will decline approximately 50 basis points annually, assuming no retained earnings accretion, returning the cohort to the national 14.26% level within three years.

Idaho banks maintained a loan-to-deposit ratio of 74.07% in Q2 2026, positioning 3.41 percentage points below the national benchmark of 77.48%. The cohort's more conservative deployment posture reflects either stronger deposit franchise growth relative to loan demand or deliberate liquidity management. No quarter-over-quarter or year-over-year data is available to assess whether this gap is widening, narrowing, or stable, limiting the analysis to cross-sectional comparison against the national aggregate.

Noninterest-bearing deposit share reached 28.32%, a substantial 6.73 percentage point advantage over the national 21.60%. This franchise strength suggests Idaho banks retain a meaningful core deposit base despite industry-wide migration to interest-bearing products. The gap is economically significant: every percentage point of NIB share directly reduces funding costs and supports net interest margin. The cohort's 4.21% NIM—34 basis points above national—is mechanically linked to this deposit-mix advantage. Without time-series data, it is unclear whether the NIB share reflects durable customer relationships or temporary deposit inflows that may reprice in future quarters.

Net interest income as a percentage of revenue stood at 0.23%, 43 basis points below the national 0.66%. This metric measures NII scaled to total revenue, not total assets; the wide gap suggests Idaho banks generate a larger share of revenue from noninterest sources—fees, service charges, or other income—than the typical FDIC-insured institution. The loan-to-deposit ratio, NIB share, and NII-to-revenue mix together indicate a cohort with strong deposit franchise economics but a revenue model less dependent on net interest income than the national aggregate.