New Hampshire Banks

Return on assets for New Hampshire banks rose to 0.63% in Q1 2026, up 12 basis points from 0.50% in Q4 2025 and up 32 basis points from 0.30% a year earlier—the strongest profitability in the series shown. The YoY improvement of 32 basis points dwarfs the QoQ gain of 12 basis points, so the expansion accelerated on an annual basis but decelerated sequentially. The cohort remains 57 basis points below the national ROA benchmark of 1.20%, a profitability gap that narrowed from 90 basis points a year earlier.

Two drivers account for the ROA expansion. Net interest margin widened 32 basis points YoY to 3.31%, up from 2.99% in Q1 2025, as deposit costs stabilized and the noninterest-bearing share decline decelerated (down 96 basis points YoY but only 32 basis points QoQ). NIM rose 13 basis points QoQ from 3.17%, so the margin expansion continued but at a slower pace than the YoY trend. Efficiency ratio fell 13.50 percentage points YoY to 72.72%, down from 86.22% in Q1 2025, and dropped 4.16 percentage points QoQ from 76.88%—the sharpest improvement in the series. The QoQ efficiency gain was driven by noninterest income normalization; net interest income as a percentage of revenue fell 3.00 percentage points QoQ to 1.05% from an elevated 4.05% in Q4 2025, but rose 14 basis points YoY from 0.91%, indicating the Q4 spike was an anomaly. New Hampshire's efficiency ratio of 72.72% sits 8.58 percentage points above the national 64.14%, so the cohort remains less operationally efficient than the industry aggregate despite the improvement.

The profitability gradient across FDIC specialization categories is pronounced. Mortgage specialists posted an efficiency ratio of 76.96%, 12.81 percentage points above the national 64.14% and 4.24 percentage points above New Hampshire's cohort average, reflecting the capital-intensive, rate-sensitive nature of mortgage banking. Credit Card specialists, though a small fraction of the national universe at 0.2%, posted NIM of 13.80%—9.99 percentage points above national—and efficiency of 54.43%, 9.71 points below national, demonstrating the high-margin, high-efficiency profile of consumer-lending specialists. Agricultural banks at 59.51% efficiency outperformed the national 64.14% by 4.63 points. If New Hampshire's efficiency ratio continues its current quarterly pace of improvement (roughly 4 percentage points per quarter over the two quarters shown), the cohort will reach national parity by Q3 2026.

Asset growth for New Hampshire banks decelerated to 5.33% in Q1 2026, down from 6.54% in Q4 2025 and down from 5.62% a year earlier. The YoY deceleration of 5.10 percentage points is modest, but the QoQ deceleration of 18.49 percentage points signals a sharp sequential slowdown. The cohort's 5.33% growth rate sits 18 basis points above the national benchmark of 5.15%, so New Hampshire banks are expanding slightly faster than the industry aggregate but the gap is narrow and the trajectory is decelerating.

Loan growth decelerated to 5.55% YoY, down from 7.19% in Q4 2025 and down from 5.83% a year earlier. The QoQ deceleration of 22.73 percentage points is sharper than the asset-growth deceleration, indicating that loan origination momentum slowed more than balance-sheet expansion overall. Loan growth at 5.55% sits 65 basis points below the national 6.20%, a reversal from the cohort's historically loan-heavy posture. Deposit growth decelerated even more sharply to 5.73% YoY, down from 9.48% in Q4 2025 and down from 6.79% a year earlier. The QoQ deceleration of 39.57 percentage points is the most pronounced in the growth section, suggesting that deposit inflows surged in Q4 2025 and normalized in Q1 2026. Deposit growth at 5.73% sits 71 basis points above the national 5.02%, so the cohort is still gathering deposits faster than the industry despite the deceleration.

The growth posture is decelerating but balanced. Deposit growth at 5.73% exceeded loan growth at 5.55%, mechanically compressing the loan-to-deposit ratio by 96 basis points QoQ and 99 basis points YoY to 91.46%. The Q4 2025 deposit surge that drove the 9.48% growth rate appears to have been a seasonal or one-time inflow; the Q1 2026 normalization to 5.73% is closer to the cohort's historical pace. Asset growth at 5.33% trails the Q4 2025 pace of 6.54% but exceeds the national 5.15%, so the cohort is still expanding. If loan and deposit growth continue to converge at the current spread (18 basis points YoY), the loan-to-deposit ratio will compress another percentage point over the next year, moving closer to but still well above the national 76.38%.

Loan delinquency for New Hampshire banks rose to 0.39% in Q1 2026, up 6 basis points from 0.32% in Q4 2025 but up only 4 basis points from 0.34% a year earlier—a stable YoY trajectory. The cohort's delinquency rate sits 31 basis points below the national benchmark of 0.70%, marking New Hampshire as among the lowest-risk jurisdictions in the FDIC-insured universe. The QoQ increase of 6 basis points is larger than the YoY increase of 4 basis points, so delinquency is rising sequentially but remains well below pre-pandemic norms and national averages.

Nonperforming assets as a percentage of total assets rose to 0.21% in Q1 2026, up 6 basis points from 0.15% in Q4 2025 but down 12 basis points from 0.33% a year earlier. The YoY improvement of 12 basis points outweighs the QoQ deterioration of 6 basis points, so the NPA ratio is improving on an annual basis but ticking up sequentially. The cohort's 0.21% NPA ratio sits 30 basis points below the national 0.51%, consistent with the low-delinquency profile. Tier 1 capital ratio rose to 13.72% in Q1 2026, up 9 basis points from 13.63% in Q4 2025 but down 26 basis points from 13.98% a year earlier. The YoY decline of 26 basis points reflects the cohort's loan-heavy balance-sheet expansion (loan growth at 5.55% YoY outpaced deposit growth at 5.73% YoY, but both exceeded capital accumulation). The cohort's 13.72% Tier 1 ratio sits 54 basis points below the national 14.26%, but remains well above the FDIC's 8% well-capitalized threshold.

The risk gradient across FDIC specialization categories is pronounced. Credit Card specialists posted delinquency of 2.57%, 187 basis points above the national 0.70%, reflecting the higher charge-off rates inherent in unsecured consumer lending. Mortgage specialists at 0.57% delinquency and Consumer specialists at 0.57% both trail the national 0.70%, while Agricultural banks at 0.63% and Commercial banks at 0.72% cluster near the national average. New Hampshire's 0.39% delinquency sits well below all specialization categories except International (0.62%), consistent with a geographically concentrated, relationship-driven lending model. If delinquency continues its current QoQ pace of 6-basis-point increases, the cohort will reach 0.51% (national parity) in two quarters, but the YoY stability of 4 basis points suggests the Q1 2026 uptick may be seasonal rather than structural.

New Hampshire banks' loan-to-deposit ratio decreased to 91.46% in Q1 2026, down 96 basis points from 92.42% in Q4 2025 and down 99 basis points from 92.46% a year earlier. The ratio remains 15.09 percentage points above the national benchmark of 76.38%, marking the cohort as among the most loan-intensive in the FDIC-insured universe. Both QoQ and YoY the move was nearly identical in magnitude—roughly 1 percentage point of compression per quarter—so the deleveraging is steady, not accelerating.

Two mechanical forces account for the compression. Deposit growth at 5.73% YoY outpaced loan growth at 5.55% YoY, mechanically lowering the ratio. Noninterest-bearing deposit share fell 96 basis points YoY to 13.95%, down from 14.91% in Q1 2025, reflecting the industry-wide migration to interest-bearing products. QoQ, NIB share declined only 32 basis points from 14.27%, so the shift decelerated sharply. New Hampshire's NIB share sits 7.65 percentage points below the national 21.60%, consistent with a smaller-bank cohort where depositors are more rate-sensitive. Net interest income as a percentage of revenue rose 14 basis points YoY to 1.05%, but fell 3.00 percentage points QoQ from an elevated 4.05% in Q4 2025, a compression driven by noninterest income normalization rather than NII contraction.

The engagement posture is stable but loan-heavy. A 91.46% loan-to-deposit ratio leaves limited liquidity cushion relative to national peers at 76.38%. The cohort's deposit franchise is rate-sensitive—NIB share at 13.95% versus national 21.60%—but deposit growth at 5.73% YoY outpaced the national 5.02%, so funding momentum is intact. If deposit growth continues to exceed loan growth at the current pace (18-basis-point spread YoY), the LDR will compress another percentage point over the next four quarters, moving closer to but still well above national norms.