In the ever-evolving financial landscape, it’s more important than ever to stay on top of market and performance trends. In this Bank & Thrift Performance Trends report, professionals from Forvis Mazars examine a variety of trends affecting the banking industry. We have observed that, as compared to the first quarter of 2025, the banking industry achieved strong loan growth, increased profitability, and lower net charge offs (NCOs), but there are factors that could create challenges moving forward.
Key Findings
- Annualized loan growth in the U.S. banking system of 8.1% during the second quarter of 2025, with 1-4 family real estate and non-owner occupied portfolios leading the way.
- Community bank portfolios continue to mostly consist of real estate loans with a slight increase in commercial and industrial loans.
- Overall loan yields and funding costs remained unchanged as compared to the first quarter of 2025. However, for institutions with less than $10 billion in assets, total loan yields increased while funding costs remained unchanged.
- Many asset quality metrics improved or remained at the levels reported for the first quarter of 2025 but are still above full-year 2022 levels.
“Banks today face numerous challenges as the financial landscape continues to evolve, and staying up to speed with current trends is no easy task. We are proud to offer this report that includes valuable benchmarking data for banks to consider as they navigate these complex issues.”
Ryan Swope
National Practice Leader, Loan Review
Learn More in Our Full Report
Forvis Mazars understands that banking professionals need access to relevant peer data to help assess institutional performance. Download your complimentary copy of the full report today to better understand recent performance trends and the potential effects they may have on your institution. In addition, receive valuable asset size-specific benchmarking data to see how you stand against your peers. Access all of our past Financial Institution Performance Trends reports for more insights.