Peer Data for New England Banks: Q4 2020
Linked within this email is our compilation of peer financial information for the year ended December 31, 2020. Consistent with last quarter, each New England state has its own tab and there is a final tab that consolidates all the banks in New England.
The data includes a number of key credit quality, performance, and capital adequacy ratios. We also include simple averages for each state and comparable ratios for all FDIC-insured institutions in the $100 million to $1.0 billion and $1.0 billion to $10.0 billion ranges.
The fourth quarter saw margins stabilize in New England, with net interest margin increasing slightly to 3.16% at the end of the fourth quarter vs. 3.14% at the end of the third quarter. Nationally, net interest margins improved over last quarter.
Credit quality continues to be strong for New England banks with net charge-offs (7 basis points) and non-performing loans to total loans ratios (71 basis points) below national averages.
This information is all publicly available so it can be shared with others in your bank including board members.
Click HERE for the full report.
Q4 2020 Peer Data for New England Credit Unions
Attached is our compilation of financial information for New England credit unions. In the data, each New England state has its own tab and there is a final tab that includes all New England credit unions.
The data includes several key credit quality, performance, liquidity, and capital adequacy ratios. We then break out certain ratios that we consider important in determining financial performance and long-term viability of credit unions.
These key ratios are:
- Return on assets.
- Net interest margin.
- Ratio of operating expenses to gross income.
- Loans to shares.
From there, we rank the credit unions across each of these key ratios and determine an overall ranking based on the average of all these ratios.
On the “all New England” tab, we have included comparable ratios for all credit unions in the U.S. and comparable prior period ratios for New England credit unions.
Some quick observations on the results are as follows:
Performance
Returns bottomed out in Q1 and were stable for the rest of the year both nationally and in New England, although still well below prior year. Margins continue to be negatively impacted by historic low rates – the net interest margin for the year ended December 31, 2020 is 2.91% - declining every quarter in 2020.
Credit Quality
Credit quality remains very strong, the delinquent loans to total loans ratio has gone down every quarter this year in New England. Over this period, credit unions continue to build reserves with the ratio of allowance for loan losses to total loans going up for .81% as of December 31, 2019 to .86% as of December 31, 2020.
Capital and Liquidity
Credit Unions continue to see increases in deposits with the loan to share ratios trending down again this quarter on a national level and for New England.
With the dramatic increase in deposits, capital ratios are also down again this quarter but still significantly above requirements – the average net worth ratio for New England as of December 31, 2020 is 12.09% and the national average is 10.32%
This information is publicly available, so it may be shared with others in your credit union, including board members.
If you would like to discuss the information in further detail, we would be happy to do so.
Click PEER REPORT to view the December 31, 2020 data.
As always, feel free to contact us with any questions.
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For more than two decades, our teams have worked with New England banks and credit unions.
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