$100m-$1b Banks

Return on assets for banks with $100M-$1B in assets reached 1.27% in Q2 2026, 3 basis points above the national benchmark of 1.24%. Without quarter-over-quarter or year-over-year data, the cohort's profitability positioning relative to the national average defines the snapshot. Net interest margin of 3.94% exceeded the national 3.87% by 7 basis points, while the efficiency ratio of 63.47% trailed the national 63.11% by 35 basis points. The combination of above-average NIM and below-average efficiency suggests that $100M-$1B banks generate stronger lending spreads but face higher operating expense ratios than the broader industry, a pattern consistent with scale dynamics in branch networks and technology infrastructure.

Two ways to measure profitability in this asset band. The cohort-level ROA of 1.27% is an asset-weighted aggregate; the per-institution distribution shows 96.7% of the 2,642 banks are profitable, with ROA ranging from -25.68% to 81.14% and a mean of 1.323%. The 3.3% of institutions with negative ROA represent 87 banks facing operating losses, a small but material subset. The mean ROA of 1.323% slightly exceeds the cohort aggregate of 1.27%, indicating that the largest banks within the $100M-$1B band compress the average modestly. Net interest margin distribution spans 0.43% to 91.06% with a mean of 3.987%, close to the cohort aggregate of 3.94%. The efficiency ratio of 63.47% reflects the operating expense burden: for every dollar of revenue, $0.63 goes to noninterest expense, higher than the national $0.63 per dollar.

Specialization divergence drives the profitability spread. Credit Card specialists, though only 10 banks (0.2% of cohort), posted NIM of 13.59%—9.71 percentage points above the national 3.87%—and ROA of 2.29%, reflecting the high-yield, high-loss nature of unsecured consumer lending. Mortgage specialists at 310 banks (7.3% of cohort) reported ROA of 0.76% and NIM of 3.28%, both well below the cohort average, consistent with compressed origination spreads and efficiency headwinds at 75.25%. Agricultural banks at 915 institutions (21.6% of cohort) delivered ROA of 1.41% and NIM of 3.90%, outperforming Mortgage but trailing Credit Card and Consumer specialists. Commercial banks at 2,389 institutions (56.5% of cohort) anchored the aggregate with ROA of 1.23% and NIM of 3.97%, close to the cohort mean.

Asset growth for banks with $100M-$1B in assets reached 4.96% in Q2 2026, 21 basis points below the national benchmark of 5.17%. Without quarter-over-quarter or year-over-year comparisons, the cohort's growth positioning relative to the national average serves as the primary reference point. Loan growth of 6.22% exceeded the national 6.16% by 7 basis points, while deposit growth of 4.65% lagged the national 4.93% by 28 basis points. The combination of above-average loan growth and below-average deposit growth mechanically tightened the loan-to-deposit ratio to 77.59%, 11 basis points above the national 77.48%, indicating that $100M-$1B banks are deploying capital into lending at a faster pace than they are attracting funding.

The distribution data reveals the composition beneath the aggregate. Among the 2,642 banks in the asset band, 78.4% are growing loans while 21.6% are experiencing loan contraction, with loan growth ranging from -83.41% to 1,251.55% and a mean of 7.908%. The 78-22 split indicates broad-based but not universal loan expansion. Asset growth shows a similar pattern: 81.4% of institutions are growing assets while 18.6% are shrinking, with asset growth ranging from -49.39% to 1,062.09% and a mean of 6.667%. Deposit growth is slightly less widespread, with 77.3% of banks growing deposits and 22.6% declining, ranging from -58.07% to 564.73% with a mean of 6.167%. The narrower deposit-growth participation rate (77.3%) compared to asset-growth participation (81.4%) suggests that banks unable to attract deposits are funding expansion through non-deposit liabilities or drawing down liquidity buffers.

Specialization patterns within the cohort show distinctive growth trajectories. Commercial banks at 56.5% of the cohort anchor the aggregate loan-growth metric of 6.22%, while Agricultural banks at 21.6% face seasonal lending cycles tied to planting and harvest. Mortgage specialists at 7.3% of the cohort typically show lumpy growth tied to secondary-market origination volumes. The loan-growth mean of 7.908% exceeds the cohort aggregate of 6.22% by 169 basis points, indicating that the largest banks within the $100M-$1B band are growing loans more slowly than the per-institution average, consistent with portfolio seasoning at the upper end of the asset band. The deposit-growth mean of 6.167% similarly exceeds the cohort aggregate of 4.65% by 152 basis points.

Delinquency for banks with $100M-$1B in assets stood at 0.66% in Q2 2026, 5 basis points below the national benchmark of 0.71%. Without quarter-over-quarter or year-over-year comparisons, the cohort's risk positioning relative to the national average defines the snapshot. The nonperforming asset ratio of 0.50% trailed the national 0.52% by 3 basis points, while Tier 1 capital of 14.20% lagged the national 14.26% by 6 basis points. The combination of below-average delinquency and below-average capital suggests that $100M-$1B banks carry modestly lower credit risk than the broader industry while maintaining slightly thinner capital cushions, a pattern consistent with optimized balance-sheet management in the asset band.

The distribution data reveals meaningful variation in credit quality beneath the cohort average. Among the 2,642 banks in the asset band, delinquency ranges from 0.0% to 26.85% with a mean of 0.918%, 25 basis points above the cohort aggregate of 0.66%. The divergence between the mean and the aggregate indicates that a subset of institutions with elevated delinquency—likely smaller banks within the $100M-$1B band or those concentrated in higher-risk loan segments—pull the per-institution average above the asset-weighted cohort figure. The 26.85% maximum delinquency represents an extreme outlier, likely a single institution facing acute portfolio stress. Tier 1 capital of 14.20% positions the cohort 6 basis points below the national 14.26%, a narrow gap that suggests capital adequacy is broadly consistent across the asset spectrum.

Specialization divergence drives the credit-quality spread. Credit Card specialists, though only 10 banks (0.2% of cohort), reported delinquency of 2.30%—159 basis points above the cohort aggregate of 0.66%—reflecting the higher loss rates inherent in unsecured consumer lending. Mortgage specialists at 310 banks (7.3% of cohort) posted delinquency of 0.61%, 5 basis points below the cohort average, consistent with secured residential lending. Agricultural banks at 915 institutions (21.6% of cohort) showed delinquency of 0.66%, matching the cohort aggregate. Commercial banks at 2,389 institutions (56.5% of cohort) anchored the aggregate with delinquency of 0.70%, 4 basis points above the cohort mean. The nonperforming asset ratio of 0.50% and delinquency of 0.66% together indicate that the cohort's credit losses remain contained, though the 25-basis-point gap between the per-institution delinquency mean (0.918%) and the aggregate (0.66%) warrants monitoring for pockets of stress.

Banks with $100M-$1B in assets maintained a loan-to-deposit ratio of 77.59% in Q2 2026, 11 basis points above the national benchmark of 77.48%. Without quarter-over-quarter or year-over-year comparisons, the cohort's positioning relative to the national average serves as the primary reference point. The LDR indicates balanced liquidity management, with loans deployed at a slightly higher rate than the national average while maintaining adequate funding capacity. Noninterest-bearing deposit share of 21.76% exceeded the national 21.60% by 16 basis points, suggesting a marginally stronger core deposit franchise than the broader banking universe.

The distribution data reveals meaningful variation beneath the cohort average. Among the 2,642 banks in the asset band, 77.3% are growing deposits while 22.6% are experiencing deposit contraction, with deposit growth ranging from -58.07% to 564.73% and a mean of 6.167%. This 77-23 split indicates that deposit franchise strength is widespread but not universal. The loan-to-deposit ratio mechanically reflects the relationship between loan growth of 6.22% and deposit growth of 4.65%—loans are expanding faster than deposits, tightening the liquidity cushion modestly. Net interest income as a percentage of revenue reached 0.57%, 9 basis points below the national 0.66%, indicating that $100M-$1B banks derive a smaller share of revenue from core lending spreads than the national average, likely reflecting greater reliance on fee income or investment securities.

Specialization patterns within the cohort show distinctive funding postures. Commercial banks, representing 56.5% of the cohort, anchor the aggregate metrics. Agricultural banks at 21.6% of the cohort face seasonal liquidity dynamics tied to commodity cycles, while Mortgage specialists at 7.3% typically carry higher loan-to-deposit ratios due to secondary-market origination models. The noninterest-bearing share of 21.76% positions the cohort slightly ahead of the national average, a modest advantage in a deposit-pricing environment where every basis point of funding cost matters to net interest margin sustainability.