Mutuals throughout Ohio, the Midwest and nationally appear to be in a stuck in a financial institution Groundhog Day time warp. Limited loan growth, excess liquidity and historically low net interest margins are recurring trends evident in third quarter financial results for mutuals across the asset size spectrum.

Total loans through the first nine month of 2021 grew modestly – again – in Ohio by 1.6 percent, by 0.30 percent in the Midwest and by 0.20 percent for all mutuals nationally. Deposit growth rates declined from prior quarter’s double digit growth rates to approximately seven percent for mutuals in Ohio and the Midwest and to 10 percent from more than 12 percent for mutuals nationwide. Net interest income as a percentage of average assets for mutuals in Ohio (2.63 percent), the Midwest (2.61 percent) and nationally (2.71 percent) are all within a basis point or two from midyear results.

The median return on average assets (ROAA) for mutuals in Ohio improved modestly to 0.37 percent compared with 0.35 percent in both the first and second quarters of 2021. The median ROAA for mutuals based in the Midwest continued their upward trend, improving to 0.47 percent, an increase from 0.42 percent in the second quarter of ’21 and 0.40 percent for the first quarter. For mutuals nationally, the median ROAA totaled 0.55 percent compared with 0.54 and 0.55 percent in the second and first quarters of 2021, respectively.

Scale appears to remain a key factor in overall profitability for the mutual industry. In most instances, larger asset-sized mutuals report higher ROAAs as compared to their smaller counterparts, a trend consistent throughout the financial services landscape for more than a decade. For example, efficiency ratios in the third quarter of 2021 improved as the asset size categories increased. This trend occurred in all three geographic regions.

For a more comprehensive view of third quarter 2021 data, see the attached links for detailed balance sheet, income, expense and other performance metrics. If you would like a customized report for your mutual institution comparing your results with regional and national peers, contact: Paul Simoff at