Last year proved favorable for community banks, as improved efficiency and higher net interest margins helped boost overall performance.
The 20 top-performing banks in the $2 billion to $10 billion asset tier posted an average net interest margin of 3.57%, a sign of strong profitability in their core lending operations. Most banks that made the ranking also posted solid loan and deposit growth, underscoring broad-based strength across the group.
"2025 was a good year for these banks," said Ally Akins, principal and marketing practice co-leader at Capital Performance Group, which analyzed the data for American Banker. "They were able to grow loans and grow deposits faster than they had in 2024. They increased their net interest margin, so it was just a positive year in terms of growth and making more and more money for the entire group, not just the top performers."
Even so, the highest-performing banks in this asset tier distinguished themselves by carving out successful lending niches. According to Matthew Prince, a business analyst at Capital Performance Group, doing so gives some banks a "competitive advantage," and differentiates them from the competition.
A number of banks in the top-performing ranking have built their businesses around specialized lending niches, including the oil and gas, agriculture and hospitality sectors.
"We've noticed a trend in the past, or at least recently, where a lot of these specialty banks seem to perform a little bit better, maybe because they're clearer on their niches," he added.
As banks grew last year, so did their noninterest expenses. While the increase was in line with historical trends, banks invested more in technology and marketing. On average, noninterest expenses rose 6.76% from the previous year. "They're growing it at the same rate that they're growing as the bank," said Atkins. "I think banks are using marketing more now than they used to because marketing can help them to target digitally where they may not have previously been able to, and they also just need to compete with the largest banks and fintechs in their markets to show that they're a viable alternative to those brands."
Capital Performance Group compiled its report using data provided by S&P Global Market Intelligence, based on filings with the Securities and Exchange Commission and other regulators.
Below are the 20 top-performing banks with between $2 billion and $10 billion of assets, using data from 2025.
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First-time winner Olney Bancshares of Texas, Inc., a Texas-based institution, topped the rankings in the $2 billion to $10 billion asset cohort. The $5.45 billion-asset company primarily operates through its wholly owned subsidiary, InterBank, which has more than 40 locations.
Compared with its peers, the bank posted a net interest margin of 5.17%, well above the cohort average of 3.57%. InterBank's net income was more than double the average of the top 20 institutions in the group. The bank also reported loan growth of 5.58% and core deposit growth of 6.06%.
Its three-year average return on average equity reached 29.07%, compared with the cohort average of 21.64%. The company focuses on specialized lending, including financing for the oil and gas and agriculture industries.
Southern BancShares, based in Mount Olive, North Carolina, climbed two spots to rank second. The $5.58 billion-asset company reported loan growth of 5% and core deposit growth of 4%, according to its annual report.
"Deposit growth was well balanced, with more than $80 million of growth in demand deposits, a favorable reflection of the depth of customer relationships," said Drew Covert, CEO of Southern BancShares.
Southern Bank and Trust, a subsidiary of Southern BancShares with 60 branches across North Carolina and Virginia, posted a three-year average return on average equity of 26.88%. Its net interest margin of 3.06% ranked among the lowest in the cohort.
Covert said the economy was "more resilient" than expected in 2025 and that the company is making "thoughtful investments in technology" to meet evolving customer expectations.
"Over the past several months, we have been deeply engaged in a major initiative to deliver an entirely new, state-of-the-art online and mobile banking platform for our customers. This project represents a significant investment in our future and is expected to be brought to market in the latter half of 2026," Covert said.
United Bank, based in Zebulon, Georgia, slipped to third after topping the rankings in 2024.
The $2.3 billion-asset bank, which operates across middle Georgia and employs about 400 people, posted the highest net interest margin among the top 20 institutions at 5.34%. Revenue increased 15.84% from a year earlier, while core deposits grew 5.76%.
Core deposits accounted for 73.59% of total deposits, slightly below the average among the top 20 institutions but still reflecting a stable, relationship-centered funding base.
INTRUST Financial Corporation debuted in the rankings, placing fourth. Based in Wichita, Kansas, the company is one of the largest banks in the cohort, with nearly $7 billion in assets.
The bank offers a broad range of financial products, including personal, commercial and small-business loans.
INTRUST posted an efficiency ratio of 64.77%. It also reported net loan growth of 5.48% and core deposit growth of 14.89%.
State Bank of Texas, headquartered in Irving, Texas, fell to fifth after ranking third in 2024.
The $2.77 billion-asset bank posted a net interest margin of 5.23%, among the highest in the cohort. Core deposits, which accounted for 63.33% of total deposits, increased 4.17%, while return on average equity reached 24.86%.
The bank has carved out a niche serving hoteliers. It is owned and operated by Chairman and CEO Chan Patel, along with his sons, President Sushil Patel and Chief Lending Officer Rajan Patel.
Fidelity BancShares, based in Fuquay-Varina, North Carolina, slipped one spot to sixth place.
The $4.6 billion-asset bank offers banking, mortgage, investment and wealth management services, primarily serving small and midsize businesses in North Carolina and South Carolina. Fidelity entered the South Carolina market in 2022 and has continued investing in branches and new services.
The bank reported a total risk-based capital ratio of 21.99%, the second highest in the cohort, underscoring its strong capital position and ability to absorb potential losses. It also posted loan growth of 13.3% from a year earlier.
Thomasville National Bank, based in Thomasville, Georgia, debuted in the rankings at No. 7. The $2.08 billion-asset bank is the smallest institution in the cohort.
Thomasville National Bank saw loans increase 15% and deposits grow 9% year over year, per its annual report.
Stephen Cheney, CEO of Thomasville National Bank, called the increase in both as a reflection of a "strong financial performance. We were propelled by significant loan growth, an expanding margin and continued excellent operating efficiency," said Cheney in the firm's annual report. "While we certainly do focus on expense control, we believe the key to efficiency is eliminating unnecessary bureaucracy, using common sense and making appropriate investments in people, technology, and facilities, which we did in 2025."
Texas-based Community National Bank posted the strongest growth in the cohort in both core deposits and net loans. Core deposits increased 58% from a year earlier, while net loan growth reached 94.85%.
The $2.59 billion-asset bank also reported a net interest margin of 5.22%, among the highest in the top 20 group.
However, the bank also posted the highest noninterest expense growth in the cohort, at 65.70%.
Community National Bank offers a range of products, including energy loans, mortgage loans and vehicle loans.
Watford City Bancshares, Inc., with $6.16 billion in assets, fell three spots to ninth place as net income growth slowed.
Even so, the company posted an efficiency ratio of 67.35%, the highest in the cohort. It also reported loan growth of 23.78%, while noninterest expenses increased 6.26% from a year earlier.
The Watford City, North Dakota-based company operates nearly 30 branches across North Dakota, South Dakota, Minnesota and Arizona through its subsidiary, First International Bank and Trust.
First Bancshares, with $9.7 billion in assets, is the largest company among the top 20 performers. Headquartered in Merrillville, Indiana, the company ranked 10th for the second consecutive year. Through its Centier Bank subsidiary, it operates more than 60 branches and employs about 1,000 people.
The company reported broad-based growth in 2025, with loans increasing 40.15%, core deposits rising 29.71% and revenue climbing 43.07%. Net income increased to $157 million from $148 million a year earlier.
Its net interest margin of 3.46% was below the average for institutions in the cohort. Noninterest expense growth was relatively high at 30.82%.
Hometown Community Bancorp, which primarily operates as Morton Community Bank, climbed from 13th place in last year's rankings. The $5.4 billion-asset, family owned company operates locations across central and northwestern Illinois and employs about 600 people.
Its net interest margin was 3.02%, below the average for institutions in the cohort. Net loan growth of 1.09% also trailed the cohort average. Revenue and core deposits, however, increased 11.22% and 12.93%, respectively.
Hometown is led by mother-and-son co-CEOs Jean Ann and Andy Honegger, whose family owns a majority stake in the company. About 30% of the bank is employee-owned through an employee stock ownership plan. The bank has acquired 23 institutions since the late 1980s, according to its website.
Texas Community Bank, headquartered in Laredo, Texas, operates nearly a dozen locations along the South Texas-Mexico border and in San Antonio.
The $2.2 billion-asset bank climbed six spots to 12th place after reporting core deposit growth of 7.19% and loan growth of 3.34%. Its net interest margin was 4.49% in 2025, above the average for the top 20 cohort.
Texas Community was founded 20 years ago after a shareholder group acquired a $15 million-asset bank, renamed it and began expanding the franchise.
Preferred Bank, based in Los Angeles, slipped one spot to 13th place, with the bank's CEO citing challenges from an uncertain interest rate environment.
The $7.6 billion-asset bank, which operates in Southern California, the San Francisco Bay Area, New York and Houston, offers commercial real estate loans, business loans and treasury management services.
Loans increased 3.56% in 2025, while core deposits grew 14.40%. Noninterest expense growth was 1.56%, well below the average for the top 20 cohort.
"Any time new macroeconomic risks emerge, banks are usually in the crosshairs of market activity, leading to negative movements in the market price of bank equities," said Li Yu, CEO of Preferred Bank. "In addition, the uncertainty surrounding the direction of interest rates also presents challenges in managing a banking operation, especially one that is highly dependent on net interest income as its major driver of revenue."
CalPrivate Bank, based in La Jolla, California, moved up to 14th place.
The $2.5 billion-asset bank posted a net loans-to-deposits ratio of 96.29%, reflecting its strong focus on lending. It also reported a net interest margin of 4.8%, among the highest in the cohort.
Loan growth reached 7.86% in 2025, while core deposits increased 5.55%. Noninterest expense growth was 9.16%, below the average for institutions in the cohort.
First Community Bancshares, a $4.5 billion-asset company, fell from second place to 15th.
Its return on average assets of 0.91% ranked among the lowest in the top 20, indicating it generated less profit per dollar of assets than its peers.
Headquartered in Killeen, Texas, the company primarily operates as First National Bank Texas and First Convenience Bank, with more than 350 locations across Texas, Arizona, Arkansas and New Mexico. Many of its branches are located inside Kroger, H-E-B and Walmart stores.
Noninterest expenses increased 12.26% from a year earlier, while core deposits and loans grew 8.24% and 9.13%, respectively.
Horizon Bank fell to 16th place after ranking eighth for the previous three consecutive years.
The Austin, Texas-based bank, with $2.3 billion in assets, reported core deposit growth of 9.35%, loan growth of 14% and revenue growth of 2.06% from 2024. Its net interest margin of 3.87% trailed the average for the top 20 institutions in the cohort.
Horizon, which offers business and personal lending products, reduced noninterest expense growth to 6.08%, down from 11.57% in 2024.
Builtwell Bank, based in Chattanooga, Tennessee, debuted in the rankings at No. 17 among institutions with $2 billion to $10 billion in assets.
The $2.3 billion-asset bank posted a net interest margin of 5.26%, among the highest in the cohort. Core deposits grew 3.45% from a year earlier, while net loans increased 14.76%.
Builtwell operates 31 branches across Tennessee and northwest Georgia. It offers business and commercial lending products, as well as consumer loans, including home equity lines of credit and auto loans.
Five Points Bank, with $2.1 billion in assets, operates 15 locations across Nebraska. It is the only Nebraska-based bank to make the top 20 list.
The bank offers wealth management, mortgage services, personal loans and business lending, including agricultural loans. In 2025, loans grew 22.73% and core deposits increased 25.74%.
Its net interest margin of 3.04% ranked among the lowest in the cohort, while its efficiency ratio of 50.92% was better than the cohort average.
Heritage Bank, the only Kentucky-headquartered bank on the top 20 list, debuted at No. 19.
The $2.09 billion-asset bank is one of the smallest institutions in the rankings. It posted an efficiency ratio of 62.53%, above the cohort average, while loan growth and core deposit growth totaled 2.66% and 7.16%, respectively.
The bank offers a full range of banking services, including business and consumer loans.
Northeast Bank, headquartered in Portland, Maine, climbed three spots to No. 20.
Rich Wayne, CEO of Northeast Bank, said in the company's annual report that strong loan volume and high-yield assets are the "hallmark" of the firm's success.
"Our community banking and funding strategies successfully balanced growth with cost management," Wayne said.
The $4.95 billion-asset bank reported a net interest margin of 4.71%, above the cohort average, and loan growth of 12.57%.
