KBRA Financial Intelligence

Q3 NIM Movers Among Largest Lenders to Community Banks

View the top 15 banks by Q3 net interest margin (NIM) expansion and compression across bank asset size.

Overall, median tax equivalent NIM ticked lower in Q3 by 1 basis point (bp) to 3.41% for all U.S. banks, after falling 3 bps in Q2, 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 4 bps to 3.20% and 1 bps to 3.42% in Q3, respectively, while the biggest banks (more than $100 billion in assets) expanded NIM by 5 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 6 bps, while community bank margins increased 8 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.