Peer Data for New England Banks: Q4 2020
Linked below is our compilation of peer financial information for the quarter ended March 31, 2021. Consistent with last quarter, each New England state has its own tab, and there is a final tab that consolidates all the banks in New England.
The data includes a number of key credit quality, performance, and capital adequacy ratios. We also include simple averages for each state and comparable ratios for all FDIC-insured institutions in the $100 million to $1.0 billion and $1.0 billion to $10.0 billion ranges.
The first quarter saw margins contract slightly in New England, with net interest margin decreasing to 3.06% at the end of the first quarter vs. 3.16% at the end of the fourth quarter. Nationally, net interest margins were basically flat compared to last quarter.
Operating Income to Total Assets, ROA, and ROE expanded since the fourth quarter of 2020. The Operating Income to Total Assets calculation excludes tax-effected (at 21%) equity security gains from net income. Keep in mind, ROA and ROE ratios include annualized equity security gains in the first quarter.
Credit quality continues to be strong for New England banks with net charge-offs (4 basis points) and non-performing loans to total loans ratios (67 basis points) below national averages.
This information is all publicly available, so it can be shared with others in your bank, including board members.
Click HERE for the full report.
Q4 2020 Peer Data for New England Credit Unions
Attached is our compilation of financial information for New England credit unions. Click PEER REPORT to view the March 31, 2021 data. In the data, each New England state has its own tab, and there is a final tab that includes all New England credit unions.
The data includes several key credit quality, performance, liquidity, and capital adequacy ratios. We then break out certain ratios that we consider important in determining the financial performance and long-term viability of credit unions.
These key ratios are:
- Return on assets.
- Net interest margin.
- Ratio of operating expenses to gross income.
- Loans to shares.
From there, we rank the credit unions across each of these key ratios and determine an overall ranking based on the average of all these ratios.
On the “all New England” tab, we have included comparable ratios for all credit unions in the U.S. and comparable prior period ratios for New England credit unions.
Some quick observations on the results are as follows:
Performance
ROA increased in Q1 for both New England and the rest of the country. New England increased from 21 basis points in 2020 to 31 basis points in Q1 2021. On a national level, the increase was from 70 basis points to 104 basis points.
Margins continue to be negatively impacted by historic low rates – the net interest margin for all the year-to-date periods in 2020 fell, as did the margins once again in Q1 of 2021.
Credit Quality
Credit quality remains very strong; the delinquent loans to total loans ratio continued to fall in Q1 of 2021, as did net charge-offs.
Capital and Liquidity
Credit Unions continue to see increases in deposits with the loan to share ratios trending down again this quarter on a national level and for New England.
With the dramatic increase in deposits, capital ratios are also down again this quarter but still significantly above requirements – the average net worth ratio for New England as of March 31, 2021, is 11.75%, and the national average is 10.01%
As always, feel free to contact us with any questions.
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