KBRA Financial Intelligence

3Q 2023 NIM Movers Among Largest Lenders to Community Banks

View the top 15 banks by 3Q 2023 net interest margin (NIM) expansion and compression across bank asset size.

Overall, median tax equivalent NIM ticked lower in 3Q 2023 by one basis point (bp) to 3.41% for all U.S. banks, after falling three bps in 2Q 2023, according to KBRA Financial Intelligence (KFI) data compiled from Uniform Bank Performance Reports (UBPR). Regional lenders (assets between $10 billion and $100 billion) and community banks (assets less than $10 billion) saw NIM shrink four bps to 3.20% and one bps to 3.42% in 3Q 2023, respectively, while the biggest banks (more than $100 billion in assets) expanded NIM by five bps to 3.11%. The biggest banks have increased NIM the most relative to smaller peers, increasing 39 bps year-to-date. Regional banks have seen their margin shrink six bps, while community bank margins increased eight bps in the same period. Since the Federal Reserve started aggressively raising rates in March 2022, median NIM has expanded 38 bps to 3.41% from 3.03% for all U.S. banks, according to KFI data. KFI Pro clients can use Data ID: UBPRE018 in Excel to analyze an individual bank’s quarterly NIM data.