It's an article of faith in banking that start-ups need three years to reach profitability. But a new generation of de novo banks is shattering this time-honored rule.

More than half the banks launched in 1994 and the first half of 1995 broke even within 18 months. By contrast, fewer than one-third of banks started in the second half of 1993 matched that record, according to data from Sheshunoff Information Services.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.