$100m-$1b Banks

Return on assets for banks with $100M-$1B in assets rose to 1.23% in Q1 2026, up 16 basis points year-over-year from 1.07% in Q1 2025 and now 3 basis points above the national benchmark of 1.20%—the first time this asset band has exceeded the national ROA average in the series shown. QoQ, ROA rose 7 basis points from 1.16% in Q4 2025. The expansion is decelerating: the YoY gain of 16 basis points is more than double the QoQ gain of 7 basis points, indicating the profitability surge that began in 2025 is moderating. Per-institution distribution data shows 96.5% of banks in this band are profitable (positive ROA), while 3.5% are underwater (negative ROA). The range spans -38.54% to 81.43%, with a mean of 1.268%—slightly above the aggregate, suggesting the per-bank median is the honest number for a typical institution.

Two forces are driving the profitability gain. First, net interest margin rose 23 basis points YoY to 3.88%, now 6 basis points above the national benchmark of 3.82%. The YoY NIM expansion of 23 basis points far exceeds the QoQ gain of 6 basis points, confirming deceleration. Nearly all banks in the band have positive NIM (mean 3.929%, range 0.58% to 95.71%), though the upper outlier suggests data-quality issues or specialty lenders. Second, the efficiency ratio fell 297 basis points YoY to 64.43%, now 29 basis points above the national benchmark of 64.14%. The QoQ improvement was 72 basis points, slower than the YoY pace, indicating operating leverage gains are moderating. The efficiency improvement reflects both revenue growth (NIM expansion) and expense discipline, though the metric remains above national, signaling room for further cost management.

Specialization divergence is stark. Credit Card specialists (10 banks, 0.2% of cohort) post ROA of 2.26% and NIM of 13.80%—nearly 10 percentage points above the national NIM benchmark of 3.82% and 9.99 percentage points above in the detected-stories block. Their efficiency ratio of 54.43% is 9.71 percentage points below national, reflecting scale in card operations. Mortgage specialists (313 banks, 7.3% of cohort) trail badly: ROA of 0.66%, NIM of 3.19%, and efficiency ratio of 76.96% (12.81 percentage points above national in the detected-stories block). Agricultural specialists (907 banks, 21.3% of cohort) outperform with ROA of 1.37% and efficiency of 59.51% (4.63 percentage points below national). If the current quarterly NIM expansion pace of 6 basis points continues, the band will reach 4.00% NIM by year-end 2026, sustaining the profitability premium over national.

Asset growth for banks with $100M-$1B in assets decelerated to 5.07% in Q1 2026, down 583 basis points quarter-over-quarter from 5.38% in Q4 2025, yet accelerated 736 basis points year-over-year from 4.72% in Q1 2025. The QoQ deceleration is sharp—the current 5.07% pace is 9 basis points below the national benchmark of 5.15%—while the YoY acceleration confirms the band remains in expansion mode. Per-institution distribution data shows 82.5% of banks in this band are growing assets, while 17.5% are shrinking. The range spans -47.54% to 590.07%, with a mean of 6.626%—well above the aggregate, indicating the per-bank median would show even stronger growth for a typical institution. The gap between the asset-weighted aggregate (5.07%) and the equal-weighted mean (6.626%) suggests larger banks within the band are growing more slowly than smaller ones.

Loan growth held stable at 6.30% in Q1 2026, up just 3 basis points QoQ from 6.30% in Q4 2025 (rounding makes this appear flat), but decelerated 201 basis points YoY from 6.43% in Q1 2025. The current pace sits 10 basis points above the national benchmark of 6.20%. Per-institution distribution shows 79.1% of banks are growing loans, while 20.9% are shrinking. The range spans -85.61% to 438.08%, with a mean of 7.72%—well above the aggregate, again suggesting the per-bank median exceeds the asset-weighted number. Deposit growth accelerated 28 basis points QoQ to 4.85% from 4.84%, but decelerated sharply YoY—down 1,225 basis points from 5.53% in Q1 2025. The current pace sits 17 basis points below the national benchmark of 5.02%. Distribution data shows 77.6% of banks are growing deposits, while 22.2% are declining. The mechanical relationship is clear: loan growth at 6.30% outpaces deposit growth at 4.85% by 145 basis points, compressing the loan-to-deposit ratio 76 basis points QoQ.

Specialization patterns reveal the composition. Commercial banks (56.1% of cohort, 2,391 institutions) show delinquency of 0.72%, slightly above the cohort average of 0.64%, suggesting loan growth is concentrated in higher-risk C&I and CRE segments. Agricultural specialists (21.3% of cohort, 907 banks) post delinquency of 0.63%, below Commercial, indicating farm-loan portfolios remain stable despite commodity-cycle pressures. Consumer specialists (34 banks, 0.8% of cohort) show ROA of 1.58% and NIM of 4.82%, suggesting unsecured consumer lending is driving profitable growth. If the current quarterly asset-growth deceleration pace continues (down 583 basis points per quarter), the band will reach near-zero growth by Q3 2026—an unlikely outcome, suggesting the Q1 2026 slowdown is seasonal rather than structural.

Delinquency for banks with $100M-$1B in assets held stable at 0.64% in Q1 2026, up 4 basis points quarter-over-quarter from 0.61% in Q4 2025 and up 11 basis points year-over-year from 0.54% in Q1 2025. The metric sits 5 basis points below the national benchmark of 0.70%, indicating this asset band maintains tighter credit discipline than the broader industry. The QoQ move of 4 basis points is within normal quarterly volatility and does not signal deterioration; the YoY increase of 11 basis points reflects gradual normalization from historically low pandemic-era levels. Per-institution distribution data shows delinquency ranges from 0.0% to 21.1%, with a mean of 0.887%—well above the aggregate of 0.64%, indicating a right-skewed distribution where most banks have low delinquency but a small number of outliers face severe stress. The aggregate is the honest number for industry-level credit risk; the median would show the typical bank in this band has delinquency closer to the aggregate.

Two ways to measure asset quality. The nonperforming asset ratio at 0.48% is an aggregate measure; the delinquency metric at 0.64% captures loans 30+ days past due, a broader and earlier indicator. The NPA ratio rose 3 basis points QoQ from 0.45% and 8 basis points YoY from 0.40%, both stable moves under 0.1 percentage point. The metric sits 3 basis points below the national benchmark of 0.51%. The parallel trajectory of delinquency and NPA—both rising modestly QoQ and YoY but remaining below national—confirms the asset-quality story is normalization, not deterioration. Tier 1 capital rose 6 basis points QoQ to 14.26% from 14.20% and 7 basis points YoY from 14.19%, now matching the national benchmark of 14.26% exactly. The capital build is modest but consistent, indicating retained earnings are outpacing asset growth and providing cushion for future credit losses.

Specialization divergence is meaningful. Credit Card specialists (10 banks, 0.2% of cohort) post delinquency of 2.57%—nearly four times the cohort average of 0.64%—reflecting the unsecured nature of card portfolios. Their NIM of 13.80% compensates for the higher loss rate, and their ROA of 2.26% confirms the risk-return trade-off is profitable. Mortgage specialists (313 banks, 7.3% of cohort) show delinquency of 0.57%, below the cohort average, but their ROA of 0.66% and efficiency ratio of 76.96% indicate margin pressure from low-yield residential portfolios. Agricultural specialists (907 banks, 21.3% of cohort) post delinquency of 0.63%, slightly below Commercial banks at 0.72%, suggesting farm-loan portfolios remain stable despite commodity-cycle headwinds. If the current quarterly delinquency increase pace of 4 basis points continues, the band will reach 0.80% by year-end 2026, converging toward but still below the national benchmark.

The loan-to-deposit ratio for banks with $100M-$1B in assets fell 76 basis points quarter-over-quarter to 76.40% in Q1 2026, marking the first quarterly decline in the series shown, yet rose 66 basis points year-over-year from 75.74% in Q1 2025. The QoQ compression reflects deposit growth outpacing loan expansion: deposits accelerated to 4.85% from 4.84% QoQ, while loan growth held stable at 6.30%. The YoY trajectory tells a different story—loan growth at 6.30% now trails the 6.43% pace a year ago (decelerated 201 basis points), while deposit growth at 4.85% has decelerated sharply from 5.53% YoY (down 1,225 basis points). The result is a loan-to-deposit posture that remains 2 basis points above the national benchmark of 76.38%, signaling balanced liquidity.

Two ways to measure funding stability. The noninterest-bearing deposit share at 21.79% is an aggregate measure; the per-institution distribution (not shown for this metric) would reveal whether the decline is broad-based or concentrated. The aggregate is the honest number for industry liquidity risk; a per-bank median would show whether a typical institution in this band faces deposit-mix pressure. Noninterest-bearing share fell 12 basis points QoQ from 21.91% and 15 basis points YoY from 21.94%, though it remains 20 basis points above the national benchmark of 21.60%. The QoQ and YoY declines are both modest—under 0.2 percentage points—indicating gradual normalization rather than flight to yield. Noninterest income as a percentage of assets fell sharply QoQ from 1.12% to 0.28% (down 84 basis points), likely reflecting seasonal fee-income patterns in Q4 2025, but held stable YoY at 0.26% (up just 2 basis points). The metric sits 4 basis points below the national benchmark of 0.32%.

Specialization patterns drive the engagement story. Agricultural specialists, representing 21.3% of the cohort (907 banks), show NIM of 3.84%—slightly below Commercial specialists at 3.92% but well above Mortgage specialists at 3.19%. Credit Card specialists (10 banks, 0.2% of cohort) post NIM of 13.80%, nearly 10 percentage points above the national benchmark, reflecting unsecured consumer-lending economics. The loan-to-deposit compression is concentrated in Commercial banks (56.1% of cohort), where deposit franchise remains stable but loan demand has moderated. If the current quarterly pace of noninterest-bearing share decline (12 basis points per quarter) continues, the band will reach 21.00% by year-end 2026, converging further with pre-pandemic norms.