Mutuals throughout Ohio, the Midwest and U.S. experienced dramatic shifts in balance sheet composition and earnings for 2020 (see results for 12-month period ending December 31, 2020).

For all of 2020, total assets grew by approximately nine percent for Ohio mutuals compared with 9.4 percent for mutuals in the Midwest and 10.4 percent for mutuals nationally.  Balance sheet growth was triggered by double-digit increases in deposits, generally affected by issuance of government stimulus checks, historically high savings rates and lower levels of consumer and business spending.  For Ohio-based mutuals in the fourth quarter of 2020, deposits grew at an annualized rate of 44 percent.  The impacts of these trends were reflected not only in deposit growth metrics, but in exacerbating the already prevalent trends in declining margins, elevated liquidity and minimal loan growth outside of PPP loans and 1-4 family residential mortgages.  For example, loans grew by less than three percent nationally as well as in the Midwest and in Ohio for mutuals during the 12-months of 2020.  Net interest incomes for all geographic regions remain below three percent, generally hovering in a range of 2.75-2.85 percent of average assets.

Overall for 2020, net income as measured by return on average assets (ROAA), ranged from 0.34 percent for the 37 mutuals based in Ohio, 0.38 percent for 137 mutuals based in the Midwest to 0.49 percent for 456 mutuals nationally.  The forces of scalability are impacting mutual institutions similarly to their commercial banking counterparts.  Larger mutuals continue to outperform smaller companies (see Table 3.2 for 12-month results) when comparing individual asset classes.  For example, mutuals with total assets less than $50 million generated an ROAA of 0.10 percent in 2020 compared with 0.65 percent for mutuals with assets greater than $500 million.  This performance gap of approximately 50 or more basis points has held steady for several years.

For a more comprehensive view of fourth quarter and 12-month 2020 data, see the attached links for detailed balance sheet, income, expense and other performance metrics.  If you would like a customized report for your institution comparing your results with regional and national peers, contact:  Paul Simoff at psimoff@probank.com.

 

MUTUAL RANKING - DECEMBER 2020                                MUTUAL RANKING - 12-MONTH PERIOD (2020)