Banks of all sizes had a good year in 2025, but the strongest performers distinguished themselves by preserving profitability as interest rates fell. Lower funding costs helped the highest-ranked banks maintain stronger net interest margins than the broader industry.
Banks that posted higher net margins last year rose to the top of American Banker's 2025 list of top-performing banks with between $10 billion and $50 billion of assets. The banks are ranked by the consulting firm Capital Performance Group based on their three-year average return on average equity, or ROAE, using data from year-end 2025.
On average, the net interest margin for all banks in the tranche was 3.35%, compared with 3.88% among the top 10 banks.
Claude Hanley, a founder and partner of Capital Performance Group, told American Banker that one of the biggest differences between the top-performing banks and the broader group was funding. The top 10 held a larger share of low-cost demand deposits, such as checking and money market accounts, giving them a cheaper source of funding for loans and helping preserve margins even as interest rates declined.
Hanley also said there was no huge turnover among the top 10 performers, adding that the banks included in the ranking "outperformed in almost every aspect."
"My takeaway is that there's consistency in the top-performing cohort year after year," Hanley said. "If you just looked at 2025, they outperformed on just about all the key metrics, except for growth, so to me that implies that what contributes to top performance is not growth per se, but it's profitable growth. They preserve their margin."
Hanley also added that winners in this group were able to masterfully maneuver in an operating environment which saw the Federal Reserve reduce interest rates by 75 basis points.
"Were these banks properly positioned to take advantage of this landscape?" said Hanley. "As a general rule, banks don't really do well when rates are reduced. They like it when rates are going up because they're going to charge customers more for a loan."
"The likely implication is that these banks were able to essentially preserve their yield on earning assets in a declining rate environment."
Meanwhile, noninterest expenses grew 8.83% on average for all banks in the list, while the top 10 cohort saw 8.72%.
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.
Here are performance metrics from 2025 for the 10 top-performing banks with between $10 billion and $50 billion in assets.
Read more about the Top Performing Banks ranking:
The top-performing banks with $2B to $10B of assets in 2025 The top-performing 20 public banks with under $2B of assets in 2025 The unglamorous playbook that made InterBank a top performer
FirstBank, the principal banking subsidiary of First BanCorp., ranked first again among the top-performing banks with $10 billion to $50 billion in assets.
The San Juan, Puerto Rico-based bank posted a 19.90% return on average equity (ROAE), the highest among its peers in the ranking. Its net interest margin was 4.75%, compared with the cohort average of 3.35%.
In its annual letter, the $19 billion-asset firm described 2025 as a "record year," with net income rising 15% year over year to $345 million. The bank's balance sheet remained strong, with total loans increasing 3% from a year earlier, driven by demand for commercial lending products. Core deposits grew 1.5%.
FirstBank also said it continued to reposition its balance sheet toward higher-yielding investment securities while strengthening liquidity and capital levels.
The firm has operations in Puerto Rico, the United States and the U.S. and British Virgin Islands.
Commerce Bank, a $32.9 billion-asset firm, moved up in the rankings to take second place, helped by strong net income growth.
The Kansas City, Missouri-based bank saw net loans increase 3.14% from a year earlier, while core deposits grew 1.51%. Its noninterest expenses were among the lowest in the cohort at 3.81%, driven primarily by higher salaries and employee benefits expenses, as well as professional and other services expenses.
In mid-2025, Commerce announced its acquisition of FineMark National Bank & Trust, a nationally chartered commercial bank, with the transaction closing Jan. 1, 2026. Commerce CEO John Kemper said the deal will accelerate the bank's wealth management growth and expand its presence in Florida.
"Throughout 2025, teams across both organizations worked collaboratively to prepare for the acquisition, positioning us to serve clients seamlessly while preserving the relationship-based service model that has long defined both banks," Kemper said. The operational systems conversion required for full integration is expected to take place in late 2026.
Commerce Bancshares operates approximately 300 branch and ATM locations across Missouri, Kansas, Illinois, Oklahoma and Colorado. The company also has subsidiaries involved in mortgage banking, credit-related insurance, venture capital and real estate activities.
FirstBank, a $26.5 billion-asset firm, ranked third after placing second the previous year.
The Lakewood, Colorado-based bank kept expenses in check, with expense growth rising just 2.17% from a year earlier, while revenue increased 13.20%. However, both core deposits and loans declined, and the bank's net interest margin was 2.66%, below the cohort average.
In September 2025, FirstBank was acquired by PNC Financial Services Group, adding 13 FirstBank branches to PNC's network.
Analysts noted that the deal carried a higher price-to-tangible book value multiple than many other bank acquisitions in 2025. Still, they said FirstBank, which had $26.8 billion in assets at the time of the transaction, represented a strong strategic acquisition.
IBC Bank, the wholly owned flagship banking subsidiary of International Bancshares Corp., moved up two spots from the previous year.
The $16.5 billion-asset company, headquartered in Laredo, Texas, reported a 4.48% net interest margin, one of the highest in the cohort. Net loans grew 7.49% from a year earlier, reflecting strong lending activity.
IBC Bank kept expenses in check, with noninterest expenses rising 5.05% from the previous year. Net interest income increased modestly to $672.4 million in 2025 from $656.7 million a year earlier.
In its annual report, IBC Bank noted that it is "highly active" in facilitating trade along the U.S.-Mexico border, conducting significant business with customers based in Mexico. The bank also said deposits from individuals and entities domiciled in Mexico make up a large and stable portion of its subsidiary banks' deposit base.
"We also serve the growing Hispanic population through our facilities located throughout north, south, central, and southeast Texas and the State of Oklahoma," the bank said in its annual report. "Future economic conditions remain uncertain and the impact of those conditions on our business also remains uncertain."
OFG Bancorp, the parent company of Oriental Bank and other subsidiaries, climbed to fifth place in the rankings.
The San Juan-based company reported $12.5 billion in assets in 2025 and posted a 5.40% net interest margin, the highest among the top 10 institutions. Core deposits grew 4.78%, while net loans increased 5%.
In the company's annual report, CEO José Rafael Fernández credited growth in commercial lending and deposits for the firm's strong performance.
"Commercial loans grew 12.5% to $3.5 billion, with two-thirds of that coming from Puerto Rico," Fernández wrote. "Second, our flagship mass-market Libre and mass-affluent Elite retail deposit accounts helped expand our retail customer base by more than 4% and drive deposit growth. Increased commercial loans and these new deposit accounts have strengthened our long-term profitability, market share and franchise value."
OFG Bancorp is a diversified financial holding company operating under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations.
ServisFirst Bank, a Birmingham, Alabama-based institution with $17.73 billion in assets, slipped one spot to sixth place.
The bank reported a 3.12% net interest margin, slightly below the average for the institutions included in the rankings. Core deposits grew 4.87%, while net loans increased 8.73%.
ServisFirst's net income growth reached 21.72%, well above the average among the ranked institutions.
The bank specializes in commercial banking, correspondent banking, treasury management, private banking and professional consumer banking.
Merchants Bank, a Carmel, Indiana-based institution with $19.45 billion in assets, fell to seventh place, in part because of higher-than-average noninterest expenses during the year.
The bank reported a 2.86% net interest margin, well below the average for banks in the $10 billion to $50 billion asset category. Even so, core deposits grew 39.72%, while net loans increased 4.95% from a year earlier. Its noninterest expenses were 34%.
In its annual report, Merchants said it employs nearly 735 people across multiple states, including 424 in central Indiana. The bank offers traditional community banking and national banking services, along with portfolio lending for multifamily and healthcare facilities, retail and correspondent residential mortgage banking, warehouse lending, SBA lending and agricultural lending.
Merchants also said it is the nation's largest government-sponsored enterprise multifamily lender, with a significant portion of its business focused on financing affordable housing projects.
BancFirst, an Oklahoma City-based institution with $14.84 billion in assets, held steady at eighth place.
The bank reported a 3.74% net interest margin, above the average for banks in the $10 billion to $50 billion asset category. Core deposits grew 5.64%, while net loans increased 6.39%. Noninterest expense growth was 8.14%, slightly below the industry average.
BancFirst offers a range of retail and commercial banking services, including commercial, real estate, energy, agricultural and consumer lending.
At the end of 2025, the company employed 2,260 full-time-equivalent employees.
First Financial Bank, an Abilene, Texas-based institution with $15.45 billion in assets, held steady at ninth place for a second consecutive year.
The bank, which operates 79 branches across Texas, reported a 3.79% net interest margin. Deposits grew 11.30% in 2025, while net loans increased 3.32%.
In the company's annual report, CEO David Bailey said he was pleased with the bank's 2025 performance, citing growth in assets, deposits and earnings. Net income rose 13.45%, while return on average assets was 1.76%.
At year-end, total loans increased 3.10% to $8.16 billion from $7.91 billion in 2024. Total deposits climbed 10.30% to $13.35 billion from $12.10 billion over the same period, according to the annual report.
Bailey also acknowledged what he described as the largest credit loss in the bank's 135-year history, stemming from fraudulent activity by a loan customer.
"We suffered the largest credit loss in our Bank's 135-year history because of fraudulent activity by a loan customer," Bailey wrote. "We are working tirelessly to recover the funds from the $22 million loss and make sure this type of loss does not ever happen again."
Bank OZK climbed one spot to 10th place among banks with $10 billion to $50 billion in assets.
With $40.8 billion in assets, the bank was one of the largest institutions in the rankings. It reported a 4.33% net interest margin, while core deposits grew 10.03% and net loans increased 7.98%. The bank's noninterest expenses rose 13.17%.
Bank OZK operates 252 retail branches.
In the company's annual report, CEO George Gleason said the bank's assets have grown a cumulative 47% over the past three years.
"While we still operate in a world with many macroeconomic uncertainties, we feel we are well positioned for the future," Gleason wrote.
