Direct Answer
64 SEC filers are classified under the Standard Industrial Classification codes that describe the community banks industry, and their latest annual reports show $77.9 billion of combined revenue and a median net margin of 212.4%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Community banks are small, locally focused lenders that take deposits and make loans to local households and businesses. Relationships support stable deposits, while credit quality and concentration in local real estate are key risks. The first numbers to compare across companies here are net interest margin, loan and deposit growth and non-performing assets.
Key Industry Metrics
- Net interest margin: Spread of loan income over deposit costs, relative to earning assets. Small banks rely on it, so rate changes and deposit competition matter.
- Loan and deposit growth: Increase in loans and deposits within local markets. It reflects local economic strength, and fast growth needs matching credit standards.
- Non-performing assets: Loans and foreclosed property that are past due or not accruing. Local real estate concentration makes it a sensitive quality gauge.
- Efficiency ratio: Noninterest costs relative to revenue. Small banks lack scale, so efficiency shows branch and staff costs against income.
- Capital ratios: Regulatory capital relative to assets and risk. It shows how much loss the bank can absorb, and limits growth and dividends.
Primary Macro Drivers
- Local economic conditions: Local job and business conditions drive loan demand and repayment, so a regional slowdown shows up in non-performing assets and loan growth.
- Interest rates: Rates set loan yields and deposit costs, shown in net interest margin, and small banks have few other income sources.
- Deposit competition: Customers may move deposits to higher-paying banks and money funds, raising costs and reducing margin.
- Consolidation: Banks merge to gain scale and reduce costs, which changes competition and the efficiency ratio of acquirers and targets.
Major Risks
- Commercial real estate concentration: Loans against local office, retail and development property can sour together when rents or values drop. Watch non-performing assets and real estate concentration.
- Funding costs: Higher deposit costs and wholesale funding use squeeze margin. Watch net interest margin, deposit mix and borrowing levels.
- Credit losses: Smaller banks have less diversification, so local business failures raise charge-offs. Watch non-performing assets and provisions.
- Regulatory and compliance costs: Fixed compliance and technology costs weigh more on small banks. Watch the efficiency ratio and compliance spending commentary.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Community Banks Filers in the SEC Record
64 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6022, 6035, 6036. Their latest fiscal years end between 2022 and 2025, and together they reported $77.9 billion of revenue. Median revenue growth over the prior year was 4.3%. Median net margin was 212.4%. Median total liabilities were 89% of total assets, and 61 of 64 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Bank Of New York Mellon Corp | $20.1 billion | 7.8% | n/a | 27.6% | FY 2025 |
| State Street Corp | $13.9 billion | 7.3% | n/a | 21.1% | FY 2025 |
| First Citizens Bancshares Inc | $9.5 billion | -2.2% | n/a | 23.1% | FY 2025 |
| Citizens Financial Group Inc | $8.2 billion | 5.6% | n/a | 22.2% | FY 2025 |
| Northern Trust Corp | $8.1 billion | -2.5% | n/a | 21.5% | FY 2025 |
| Ally Financial Inc. | $7.9 billion | -3.3% | n/a | 10.8% | FY 2025 |
| M&T Bank Corp | $1.7 billion | 7.5% | n/a | 172.1% | FY 2025 |
| Gbank Financial Holdings Inc. | $1.2 billion | n/a | n/a | 1.7% | FY 2025 |
The 8 largest of 64 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Community Banks guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Financials
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- Consumer Finance
- Commercial Lines Insurance
- Credit Card Issuers
- Commercial Finance
- Credit Rating Agencies
- Commercial Banks
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Frequently Asked Questions
What are the main KPIs for the Community Banks industry?
Key performance indicators for the Community Banks industry include: Net interest margin, Loan and deposit growth, Non-performing assets, Efficiency ratio, Capital ratios. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Community Banks industry?
The Community Banks industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Community Banks industry?
The primary risks for Community Banks companies include: Commercial real estate concentration, Funding costs, Credit losses, Regulatory and compliance costs. Investors should assess each company's exposure to these factors and its track record of navigating them.