Ohio Banks

Return on assets for Ohio banks rose 6 basis points QoQ to 0.92% in Q1 2026, up from 0.85% in Q4 2025, and increased 15 basis points YoY from 0.76% in Q1 2025—the highest ROA in the series shown. The YoY gain of 15 bps exceeds the QoQ gain of 6 bps, so profitability improvement is accelerating, not stabilizing. Ohio banks trail the national ROA benchmark of 1.20% by 28 basis points, indicating room for further convergence.

Two forces drove the ROA improvement. The efficiency ratio fell 3.85 percentage points YoY to 71.05%, down from 74.90% in Q1 2025, and declined 0.73 percentage points QoQ from 71.78% in Q4 2025. The YoY pace of efficiency improvement (~3.9 pp annually) far exceeds the QoQ pace (~2.9 pp annualized), so operating leverage gains are accelerating. Net interest margin contributed modestly, widening 20 bps YoY to 3.58% from 3.38% a year earlier, but the QoQ gain was only 2 bps from 3.56% in Q4 2025, suggesting margin expansion is stabilizing. NIM remains 24 basis points below the national 3.82%, compressed by the funding mix shift visible in the NIB share decline. The net-interest-income-to-revenue ratio fell 1.85 percentage points QoQ to 0.57% but was stable YoY (down 1 bp), indicating the QoQ volatility reflects quarterly revenue mix rather than a structural shift.

The efficiency ratio at 71.05% remains 6.91 percentage points above the national 64.14%, the widest gap in the profitability metrics shown. Mortgage specialists in the detected-stories block posted an efficiency ratio of 76.96%, 12.81 percentage points above the national benchmark, while Credit Card specialists operated at 54.43%, 9.71 percentage points below national, highlighting specialization-driven divergence. If Ohio banks continue the current quarterly efficiency-ratio improvement pace of approximately 1.9 percentage points per quarter (the average over the four quarters shown), the cohort converges toward the national 64.14% benchmark by mid-2027.

Loan growth for Ohio banks accelerated to 6.39% YoY in Q1 2026, up from 5.28% a year earlier, and accelerated 12.34 percentage points QoQ from 5.69% in Q4 2025—marking the strongest loan growth in the series shown. The QoQ acceleration is more than double the YoY acceleration, so the expansion is accelerating sharply, not stabilizing. Ohio banks now exceed the national loan growth benchmark of 6.20% by 19 basis points, the first time in the series shown that Ohio loan growth leads the national pace.

Asset growth accelerated to 4.49% YoY from 4.47% a year earlier, a modest 0.63-percentage-point gain, but accelerated 5.92 percentage points QoQ from 4.24% in Q4 2025. The QoQ acceleration in asset growth (5.92 pp) lags the QoQ acceleration in loan growth (12.34 pp), indicating loans are driving the balance sheet expansion while other asset categories are growing more slowly or contracting. Deposit growth decelerated to 4.68% YoY from 6.49% a year earlier, a 1.81-percentage-point slowdown, and decelerated 0.89 percentage points QoQ from 4.72% in Q4 2025. The spread between loan growth (6.39%) and deposit growth (4.68%) is 1.71 percentage points YoY, mechanically compressing the loan-to-deposit ratio QoQ even as loans outpace deposits on an annual basis. Ohio banks trail the national deposit growth benchmark of 5.02% by 34 basis points, the widest funding-growth gap in the growth metrics shown.

The asset growth rate of 4.49% trails the national 5.15% by 66 basis points, indicating Ohio banks are growing more slowly than the broader FDIC-insured universe despite leading on loan growth. The divergence between loan growth (above national) and asset growth (below national) suggests non-loan assets are contracting or growing at a slower pace. The detected-stories block flags deposit growth diverging from loan growth as a tension, consistent with the 1.71-percentage-point spread visible in the data. If deposit growth continues to decelerate at the current YoY pace (down 1.81 pp annually), funding pressures will intensify unless Ohio banks shift to alternative funding sources or moderate loan growth by Q3 2026.

The delinquency rate for Ohio banks increased 6 basis points QoQ to 0.59% in Q1 2026, up from 0.53% in Q4 2025, and rose 12 basis points YoY from 0.48% in Q1 2025—the highest delinquency rate in the series shown. The YoY increase of 12 bps is double the QoQ increase of 6 bps, so credit deterioration is accelerating, not stabilizing. Ohio banks remain 10 basis points below the national delinquency benchmark of 0.70%, indicating a stronger credit profile than the broader FDIC-insured universe.

The nonperforming asset ratio increased 5 basis points QoQ to 0.39% from 0.34% in Q4 2025, and rose 7 basis points YoY from 0.32% in Q1 2025, marking the highest NPA ratio in the series shown. The YoY increase of 7 bps exceeds the QoQ increase of 5 bps, so the pace of NPA accumulation is accelerating slightly. Ohio banks remain 11 basis points below the national NPA ratio of 0.51%, the widest favorable gap in the risk metrics shown. The parallel increases in delinquency and NPA ratios indicate credit migration is occurring across the portfolio, not concentrated in a single asset class. Tier 1 capital rose 6 basis points QoQ to 14.58% from 14.52% in Q4 2025, and increased 16 basis points YoY from 14.42% in Q1 2025, providing a cushion against the rising credit costs. Ohio banks exceed the national Tier 1 capital benchmark of 14.26% by 32 basis points, the strongest capital position in the risk metrics shown.

The detected-stories block does not surface specialization-specific delinquency outliers for Ohio banks, so the 0.59% aggregate delinquency reflects broad-based credit normalization rather than concentration in a single lending category. Credit Card specialists nationally posted 2.57% delinquency in the specialization-mix table, far above the 0.59% Ohio aggregate, but Credit Card specialists represent only 0.2% of the national cohort and are not material to the Ohio risk profile. If delinquency continues to rise at the current quarterly pace of 6 basis points per quarter, Ohio banks will reach the national 0.70% benchmark by Q3 2026 unless the trend reverses.

The loan-to-deposit ratio for Ohio banks decreased 0.76 percentage points QoQ to 79.26% in Q1 2026, down from 80.02% in Q4 2025, marking the first quarterly decline in the series shown. YoY, the ratio increased 0.57 percentage points from 78.69% in Q1 2025, so the trend reversed direction in the most recent quarter. Ohio banks remain 2.88 percentage points above the national LDR of 76.38%, indicating a more aggressive lending posture relative to the deposit base than the broader FDIC-insured universe.

The QoQ compression reflects loan growth outpacing deposit growth on an annualized basis, but the quarterly snapshot shows deposit growth decelerating faster than loan growth. Loan growth accelerated to 6.39% YoY from 5.28% a year earlier, while deposit growth decelerated to 4.68% YoY from 6.49% a year earlier—a 1.81-percentage-point spread favoring loans. QoQ, loan growth accelerated 12.34 percentage points while deposit growth decelerated 0.89 percentage points, widening the gap. The mechanical driver of the LDR decline is the quarterly snapshot effect: loans grew faster YoY, but the QoQ pace moderated enough to allow deposits to close the gap slightly. Noninterest-bearing deposit share fell 0.35 percentage points QoQ to 17.12%, down 0.10 percentage points YoY, signaling continued migration to interest-bearing accounts; Ohio banks trail the national NIB share of 21.60% by 4.47 percentage points, reflecting a funding mix more reliant on priced deposits.

The LDR spread across specializations is not detailed in the data provided, but the aggregate 79.26% ratio sits comfortably above the national 76.38%, suggesting Ohio banks maintain a loan-driven balance sheet. The QoQ reversal from rising to falling LDR, combined with decelerating deposit growth YoY, indicates funding pressures may be emerging. If deposit growth continues to decelerate at the current YoY pace (down 1.81 percentage points from a year earlier), the LDR could resume its upward trajectory by Q2 2026 unless loan growth also moderates.