First quarter 2022 data indicate that loan growth trends improved for mutuals throughout the nation, including Midwest- and Ohio-based mutuals.  Total loans during the quarter grew by 2.9 percent for mutuals nationwide compared with one percent for all of 2021.  For Midwest-based mutuals, total loans during the first quarter of 2022 increased modestly by 1.8 percent compared with 1.3 percent in 2021.  Ohio’s mutual institutions experienced a spike in total loans during the first quarter of 2022 compared with all of 2021, increasing by 6.9 percent for the quarter compared with 2.3 percent for 2021.

Mutuals with less than $100 million in total assets continue to experience the greatest challenges for attaining more substantial growth objectives and improvements in overall profitability.  Over the past five years, mutuals in the $50-100 million asset class have experienced a compound annual growth rate (CAGR) in total loans of 2.2 percent.  Mutuals in the $50 million-less asset class have not grown their loan portfolios over the comparable timeframe.  Other balance sheet metrics, including deposits and total assets, also indicate the disparity in growth rates for small and larger mutual institutions.

First quarter 2022 net income measured on the basis of return on average assets (ROAA) also confirms a similar, if not widening gap, in overall profitability among larger and smaller asset classes.  ROAA’s ranged from 0.19 percent for mutuals in the $50 million-less asset category; 0.26 for mutuals in the $50-100 million asset class; 0.34 for mutuals in the $100-200 million asset group; 0.43 for mutuals in the $200-500 million asset class; to 0.55 for mutuals with total assets exceeding $500 million.

For a more comprehensive view of first quarter ’22, 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 psimoff@probank.com.

 

MUTUAL RANKING - MARCH 31, 2022