Most balance sheet and income trends held steady through the third quarter of 2020 compared with prior quarter results and trends. Balance sheets continued to be bolstered by double digit deposit growth rates while mutuals, especially those based in Ohio, experienced revenue increases from gain on loan sales. Among the findings for the third quarter of 2020 are the following:

  • For mutuals headquartered in Ohio, deposits increased at annualized rates of more than 10 percent;
  • Capital ratios for Ohio mutuals, measured by Tier 1 Leverage Ratios, remained strong with an overall level of 15 percent, ranging from 12.97 percent for mutuals in the $50-100 million asset class to more than 16 percent for mutuals in the $100-200 million asset class; First Federal Savings and Loan of Lakewood and Third Federal Savings and Loan of Cleveland, Ohio’s two largest mutual institutions, both had Tier 1 Leverage Ratios exceeding 10 percent through the third quarter;
  • The median return on average assets (ROAA) for all Ohio-based mutuals for Q3 2020 was 0.34 percent compared with 0.37 percent for the second quarter of 2020; generally, profitability continues to increase commensurate with larger asset classes;
  • Third quarter gain on loan sales revenues rose to 0.30 percent of average assets overall for mutuals in Ohio; Ohio mutuals in the less than $50 million asset class experienced the highest level of gain on sale revenues at 2.11 percent of average assets, followed by First Fed of Lakewood at 1.20 percent;
  • For mutual institutions nationally, deposit growth rates as of third quarter grew at an annualized rate of more than 14 percent;
  • Overall profitability for mutuals nationwide measured 0.45 percent through the third quarter, an improvement from 0.39 percent as of the second quarter 2020 total; and
  • Nonperforming loans to total loans for mutuals nationwide totaled 0.58 percent compared with 0.59 percent for Midwest-based mutuals and 1.11 percent for Ohio mutuals.

See the peer data tables for additional financial performance details. For a complementary customized report comparing your institution’s results with those of mutual peers, contact Paul Simoff, senior consultant, psimoff@probank.com.

 

MUTUAL RANKING - SEPTEMBER 30, 2020