- July 16, 2019
- Posted by: Eileen Sullivan
- Category: Analytics, Community Banking, Strategy, Top Performers
CPG, in conjunction with the American Banker, analyzed the performance of the banking industry in 2018. Our analysis divided the industry into three asset tiers: Community Banks (defined as having total assets of less than $2.0B), Midsize Banks (total assets of between $2.0B to $10.0B), and Large Banks (total assets of between $10.0B to $50.0B).
Not surprisingly, every asset tier enjoyed a significant jump in overall profitability last year. The increase may be partly attributed to the fact that profitability in 2017 was somewhat depressed due to one-time adjustments related to the enactment of major tax legislation. The lower corporate tax rates that went into effect in 2018, coupled with continued economic growth and rising interest rates, expanded net interest margins and enabled banks in each asset tier to grow revenues faster than expenses.