The report, which utilizes 2025 year-end data compiled by Piper Sandler & Co., scores institutions based on return on average assets, tangible common equity, and nonperforming asset ratios. The findings underscore a clear divide: the top 25 performers significantly outperformed the remaining 275 banks, which posted a median net interest margin of 3.57%. Analysts suggest that the most successful institutions are those that effectively bundle lending services with deep deposit relationships.

Kara Baldwin, a partner at Crowe LLP, emphasized that top-tier banks focus on the interconnectedness of their balance sheets, requiring borrowers to bring their broader deposit business to the institution. Patrick Vernon of Crowe Advisory LLC added that stable deposits are the fundamental lever for expanding both margins and overall profitability in the current climate. Geographically, banks in the South and California dominated the top tier, accounting for 16 of the 25 highest-ranked institutions, including Commerce Bancshares and Bank7 Corp. at the top of the list.