Louisiana Banks

Louisiana banks reported return on assets of 1.19% in Q2 2026, 5 basis points below the national benchmark of 1.24%. Net interest margin of 4.15% exceeds the national 3.87% by 28 basis points, and the efficiency ratio of 66.97% trails the national 63.11% by 386 basis points. Insufficient historical data precludes quarter-over-quarter and year-over-year trend analysis for these profitability metrics in Q2 2026, so acceleration interpretation is not possible. The 5-basis-point ROA gap and 386-basis-point efficiency gap indicate Louisiana banks face higher operating costs relative to revenue, partially offsetting the margin advantage.

The efficiency ratio at 66.97% means Louisiana banks spend 66.97 cents to generate each dollar of revenue, compared to 63.11 cents nationally. The 386-basis-point gap is material: on $100 million in revenue, Louisiana banks incur roughly $3.86 million more in noninterest expense than the national peer group, compressing net income. The net interest margin advantage of 28 basis points provides partial offset—Louisiana banks earn 4.15 cents per dollar of earning assets versus 3.87 cents nationally—but the efficiency drag limits the profitability translation. The 5-basis-point ROA shortfall reflects this tension: Louisiana's funding-cost advantage (23.93% NIB share versus 21.60% nationally) and margin premium cannot fully overcome the operating-cost burden. Detected-stories analysis flags a tension between efficiency ratio levels and growth acceleration, consistent with the efficiency drag observed here. Mortgage specialists within the broader banking universe posted an efficiency ratio of 75.25%, 1,213 basis points above the national 63.11%, while Credit Card specialists achieved 54.40%, 871 basis points below national; Louisiana's 66.97% sits between these extremes, suggesting a mix of specializations rather than concentration in high-efficiency or low-efficiency categories.

No tier or specialization gradient data is available for Louisiana's profitability metrics in Q2 2026. The state's 103 institutions include Commercial (the dominant FDIC specialization nationally at 56.5% of banks), Agricultural, Mortgage, and other categories, but without granular breakouts, the cohort-level figures represent a blended snapshot. The 28-basis-point NIM advantage and 386-basis-point efficiency gap are the defining profitability characteristics: Louisiana banks generate strong interest income relative to earning assets but face elevated operating costs that compress ROA. If the efficiency ratio narrows toward the national 63.11% in subsequent quarters—through revenue growth, expense discipline, or both—the ROA gap will close, potentially positioning Louisiana banks above the national benchmark given their margin premium.

Louisiana banks posted asset growth of 5.56% in Q2 2026, 39 basis points above the national benchmark of 5.17%. Loan growth of 4.63% lagged the national 6.16% by 153 basis points, while deposit growth of 4.92% nearly matched the national 4.93%, falling short by only 1 basis point. Insufficient historical data precludes quarter-over-quarter and year-over-year trend analysis for these growth metrics in Q2 2026, so acceleration interpretation is not possible. The 39-basis-point asset-growth advantage and 153-basis-point loan-growth deficit indicate Louisiana banks expanded balance sheets through channels other than loan origination—likely securities purchases, cash accumulation, or other earning-asset categories.

The divergence between asset growth (5.56%) and loan growth (4.63%) is mechanically explained by the composition of asset expansion. Deposit growth of 4.92% provided funding for the 5.56% asset increase, but only 4.63% of that growth flowed into loans. The residual—approximately 93 basis points of asset growth—reflects investment in securities, federal funds sold, or other non-loan earning assets. This pattern suggests Louisiana banks are accumulating liquidity or deploying funds into lower-risk, lower-yield securities rather than accelerating loan origination. The 153-basis-point loan-growth shortfall versus the national 6.16% is material: Louisiana's loan portfolio is expanding at three-quarters the national pace, potentially reflecting either weaker loan demand in the state's economy or more conservative underwriting in response to elevated delinquency (1.26% versus 0.71% nationally). Deposit growth at 4.92% matched the national 4.93% almost exactly, indicating Louisiana banks retained deposit-franchise strength and did not face funding constraints that would limit loan growth.

No tier or specialization gradient data is available for Louisiana's growth metrics in Q2 2026. The state's 103 institutions span Commercial, Agricultural, Mortgage, and other FDIC specialization categories, but without granular breakouts, the cohort-level figures represent a blended snapshot. The 39-basis-point asset-growth advantage combined with the 153-basis-point loan-growth deficit suggests Louisiana banks are prioritizing balance-sheet expansion and liquidity over loan-portfolio risk. If loan growth accelerates toward the national 6.16% pace in subsequent quarters while deposit growth holds near 5%, the loan-to-deposit ratio will rise from its current 77.15%, tightening liquidity but potentially improving net interest income as higher-yielding loans displace lower-yielding securities.

Louisiana banks reported a delinquency rate of 1.26% in Q2 2026, 55 basis points above the national benchmark of 0.71%, and a nonperforming asset ratio of 0.99%, 47 basis points above the national 0.52%. Tier 1 capital of 14.95% exceeds the national 14.26% by 68 basis points, providing a cushion to absorb credit losses. Insufficient historical data precludes quarter-over-quarter and year-over-year trend analysis for these risk metrics in Q2 2026, so acceleration interpretation is not possible. The 55-basis-point delinquency gap and 47-basis-point NPA gap indicate Louisiana banks face elevated credit pressure relative to the national peer group, partially offset by stronger capital ratios.

The delinquency rate of 1.26% is 77% higher than the national 0.71%, and the nonperforming asset ratio of 0.99% is 90% higher than the national 0.52%. These are not marginal differences: Louisiana's loan portfolio carries materially higher credit risk, either due to borrower stress, industry concentration, or underwriting seasoning. The 68-basis-point Tier 1 capital advantage provides loss-absorption capacity—at 14.95%, Louisiana banks hold roughly $14.95 in Tier 1 capital per $100 in risk-weighted assets, compared to $14.26 nationally—but the elevated NPA ratio of 0.99% means nearly 1% of total assets are nonperforming, requiring reserves and limiting earnings. The combination of 1.26% delinquency and 0.99% NPA suggests a portion of delinquent loans have not yet migrated to nonaccrual status, indicating potential for further NPA increases if delinquencies persist. The profitability impact is visible: Louisiana's ROA of 1.19% trails the national 1.24% by 5 basis points despite a 28-basis-point NIM advantage, consistent with elevated provision expense to cover credit losses.

No tier or specialization gradient data is available for Louisiana's risk metrics in Q2 2026. The state's 103 institutions include Commercial, Agricultural, Mortgage, and other FDIC specialization categories, but without granular breakouts, the cohort-level figures represent a blended snapshot. Agricultural banks nationally posted a delinquency rate of 0.66%, below the national 0.71%, while Credit Card specialists reached 2.30%, well above national; Louisiana's 1.26% sits between these extremes, suggesting a mix of loan types rather than concentration in a single high-delinquency category. The 68-basis-point Tier 1 capital advantage positions Louisiana banks to weather credit deterioration: if the 0.99% NPA ratio persists and charge-offs average 50 basis points annually (a conservative assumption), the capital cushion can absorb roughly 1.4 years of losses before approaching the national 14.26% level, assuming no earnings retention.

Louisiana banks held a loan-to-deposit ratio of 77.15% in Q2 2026, 32 basis points below the national benchmark of 77.48%, reflecting a slightly more conservative lending posture relative to deposit funding. Noninterest-bearing deposit share of 23.93% exceeds the national 21.60% by 233 basis points, providing Louisiana institutions a structural funding advantage as depositors maintain higher checking balances. Net interest income as a percentage of revenue registered 0.33%, 33 basis points below the national 0.66%, signaling that noninterest income sources—fees, service charges, and other revenue streams—comprise a larger share of total revenue for Louisiana banks than for the national peer group. Insufficient historical data precludes quarter-over-quarter and year-over-year trend analysis for these engagement metrics in Q2 2026.

The loan-to-deposit ratio of 77.15% positions Louisiana banks with ample liquidity headroom. Deposit growth of 4.92% nearly matched loan growth of 4.63%, keeping the ratio stable and allowing institutions to fund loan expansion without reaching for wholesale funding or aggressively repricing deposits. The 233-basis-point noninterest-bearing share advantage translates directly to lower deposit costs: every percentage point of NIB share reduces funding expense by roughly the prevailing interest rate on interest-bearing deposits, mechanically widening net interest margin. The 33-basis-point gap in NII as a percentage of revenue indicates Louisiana banks derive proportionally more income from fees and services than the national cohort, a diversification that can stabilize earnings when net interest margin compresses.

No tier or specialization gradient data is available for Louisiana's engagement metrics in Q2 2026. The state's 103 institutions span Commercial, Agricultural, Mortgage, and other FDIC specialization categories, but without granular breakouts, the cohort-level figures represent a blended snapshot. The noninterest-bearing share advantage and lower loan-to-deposit ratio suggest Louisiana banks maintain conservative funding discipline, prioritizing liquidity and low-cost deposit franchises over aggressive loan-portfolio expansion. If deposit growth continues to pace loan growth as it did in Q2 2026, the loan-to-deposit ratio will remain stable, preserving the state's liquidity cushion into subsequent quarters.