$1b-$10b Banks

Banks with $1B-$10B in assets posted a return on assets of 1.28% in Q2 2026, 4 basis points above the national benchmark of 1.24%, marking this cohort as modestly more profitable than the industry aggregate on a per-dollar-of-assets basis. Quarter-over-quarter and year-over-year comparisons are unavailable due to insufficient historical data in this initial reporting period, precluding acceleration analysis. Per-institution distribution data reveal 98.5% of the 884 banks in this asset band are profitable, with ROA ranging from -6.32% to 37.85% and a mean of 1.39%, indicating that the asset-weighted aggregate of 1.28% is compressed by a small number of underperforming outliers.

The cohort's net interest margin of 3.70% trails the national average by 17 basis points, while the efficiency ratio of 59.27% leads national performance by 3.85 percentage points, indicating that operational discipline offsets narrower interest-rate spreads. The efficiency gap is the honest driver of this cohort's ROA advantage: lower noninterest expense relative to revenue compensates for the NIM shortfall. Net interest income as a percentage of revenue at 0.53% sits 13 basis points below the national 0.66%, consistent with the narrower NIM and suggesting that fee income plays a larger role in this cohort's profitability mix.

Specialization dynamics reveal stark divergence. Credit Card specialists among $1B-$10B banks posted NIM of 13.59%, 9.71 percentage points above the national 3.87%, and ROA of 2.29%, though they represent only 0.2% of the cohort (10 banks). Mortgage specialists, at 7.3% of the cohort (310 banks), lagged with ROA of 0.76% and efficiency ratios of 75.25%, 12.13 percentage points above national. Commercial banks, the 56.5% majority, delivered ROA of 1.23% and NIM of 3.97%, anchoring the cohort's aggregate performance. Agricultural specialists at 21.6% of the cohort posted ROA of 1.41%, outperforming the cohort average.

Banks with $1B-$10B in assets posted asset growth of 6.81% in Q2 2026, 1.65 percentage points above the national benchmark of 5.17%, indicating this cohort is expanding balance sheets faster than the industry aggregate. Quarter-over-quarter and year-over-year comparisons are unavailable due to insufficient historical data in this initial reporting period, precluding acceleration or deceleration analysis. Per-institution distribution data show 85.7% of the 884 banks in this asset band are growing assets, with a range from -67.63% to 141.89% and a mean of 8.22%, suggesting the asset-weighted aggregate of 6.81% is compressed by a small number of high-growth outliers.

Loan growth of 6.85% exceeded the national 6.16% by 69 basis points, while deposit growth of 6.62% outpaced the national 4.93% by 1.69 percentage points. The mechanical relationship is straightforward: deposit growth (6.62%) is slightly trailing loan growth (6.85%), which would mechanically widen the loan-to-deposit ratio if sustained, though the cohort's LDR of 85.52% already exceeds the national 77.48% by 8.05 percentage points. Distribution data reveal 83.7% of banks are growing loans (range -83.62% to 190.78%, mean 8.37%) and 82.1% are growing deposits (range -66.37% to 180.18%, mean 8.40%), indicating broad-based expansion across the cohort with a minority facing contraction pressure.

Specialization patterns within the cohort show Commercial banks, at 56.5% of institutions, and Agricultural banks, at 21.6%, dominate the mix and likely drive the aggregate growth trajectory. Mortgage specialists at 7.3% and Credit Card specialists at 0.2% represent smaller shares. The 14.3% of banks experiencing asset contraction and the 16.3% shrinking loans face strategic pressure if their funding costs are rising faster than loan yields, though the cohort's aggregate NIM of 3.70% and ROA of 1.28% suggest profitability remains intact for the majority.

Banks with $1B-$10B in assets posted a delinquency rate of 0.70% in Q2 2026, 1 basis point below the national benchmark of 0.71%, indicating credit quality in line with the industry aggregate. Quarter-over-quarter and year-over-year comparisons are unavailable due to insufficient historical data in this initial reporting period, precluding trend analysis. Per-institution distribution data show delinquency ranges from 0.0% to 26.14% with a mean of 0.87%, suggesting the asset-weighted aggregate of 0.70% is compressed by a small number of high-delinquency outliers. The nonperforming asset ratio of 0.56% sits 4 basis points above the national 0.52%, signaling modestly elevated problem-loan exposure.

Tier 1 capital stood at 13.53%, 73 basis points below the national benchmark of 14.26%, indicating this cohort operates with a thinner capital cushion relative to the industry aggregate, though the level remains well above regulatory minimums and the cohort is broadly well-capitalized. The gap reflects the balance-sheet intensity typical of banks in this asset band, where loan-to-deposit ratios of 85.52% (8.05 percentage points above national) and loan growth of 6.85% (69 basis points above national) consume capital faster than at smaller or larger institutions. The honest measure of capital adequacy is the Tier 1 risk-based ratio, which adjusts for asset risk; the 13.53% level shown here is the aggregate for this cohort.

Specialization dynamics reveal divergence in credit risk. Credit Card specialists, though only 0.2% of the cohort (10 banks), posted delinquency of 2.30%, 159 basis points above the cohort average, consistent with the higher-risk nature of unsecured consumer lending. Mortgage specialists at 7.3% of the cohort showed delinquency of 0.61%, 9 basis points below the cohort average. Commercial banks at 56.5% posted delinquency of 0.70%, matching the cohort aggregate, while Agricultural specialists at 21.6% showed 0.66%, 4 basis points below. The 73-basis-point capital gap versus national suggests this cohort's growth trajectory may compress capital ratios further if asset expansion continues to outpace earnings retention.

Banks with $1B-$10B in assets maintained a loan-to-deposit ratio of 85.52% in Q2 2026, 8.05 percentage points above the national benchmark of 77.48%, signaling a more aggressive lending posture relative to deposit funding. Quarter-over-quarter and year-over-year trend data are unavailable for this initial reporting period, limiting acceleration analysis. The elevated LDR reflects this cohort's positioning as active lenders in the U.S. banking system, deploying deposits into loan portfolios at a faster rate than the industry aggregate.

The noninterest-bearing deposit share stood at 20.67%, 93 basis points below the national average of 21.60%, indicating a slightly higher reliance on interest-bearing funding. Net interest income as a percentage of revenue reached 0.53%, 13 basis points below the national 0.66%, suggesting that fee income and noninterest revenue streams play a more prominent role in this cohort's business model relative to the industry aggregate. The honest number for liquidity posture is the LDR, which captures the balance between loan deployment and deposit franchise strength; the NIB share is a secondary indicator of funding cost sensitivity.

Within-cohort distribution data show 82.1% of the 884 banks in this asset band are growing deposits, with a range from -66.37% to 180.18% and a mean of 8.40%. The 17.9% experiencing deposit declines face greater funding pressure, particularly if their LDR exceeds the cohort average of 85.52%. Commercial specialists, representing 56.5% of the cohort, and Agricultural banks at 21.6% dominate the mix; their funding strategies and loan-to-deposit postures will shape the cohort's trajectory as historical trend data accumulates in subsequent quarters.