The StratEdge Bank Index · Q2 2026
Community Bank Efficiency Ratio by Asset Size (Q2 2026)
In Q2 2026, FDIC-insured banks spent 55.38% of net operating revenue on noninterest expense. Institutions under $100M in assets ran 22.7 points above the largest banks. This page adds six quarters of history and the per-bank distribution behind each band.
· Updated · Data as of (FDIC QBP, released )
55.38%
Industry efficiency ratio, Q2 2026
76.47%
Banks < $100M (pooled)
70.48%
Median bank < $100M
53.74%
Banks > $250B (pooled)
Bank efficiency ratio by asset size, Q2 2026
The efficiency ratio is noninterest expense as a share of net operating revenue, so lower means less expense per revenue dollar. In Q2 2026 the ratio fell at each step up in asset size, from 76.47% for banks under $100M to 53.74% for banks over $250B. The white line marks the industry ratio of 55.38%.
< $100M
543 banks
76.47%
$100M–$1B
2,647 banks
64.64%
$1B–$10B
890 banks
57.43%
$10B–$250B
140 banks
56.59%
> $250B
18 banks
53.74%
Source: FDIC Quarterly Banking Profile, Table III-A — Second Quarter 2026, All FDIC-Insured Institutions (released August 25, 2026) (n = 4,238 institutions).
Key findings
- The size gap is 22.73 points. Banks under $100M ran at 76.47% in Q2 2026 and banks over $250B at 53.74%. Over the six quarters shown, the gap (with FDS Bank excluded from the smallest band) ranged from 20.89 points in Q2 2025 to 26.28 points in Q4 2025.
- The $1B–$10B band reached its lowest ratio in the series. It posted 57.43% in Q2 2026, down from 59.42% a year earlier and the lowest of the six quarters. It now sits 0.84 points above the $10B–$250B band (56.59%); a year earlier the gap was 4.25 points. In the FDIC time series, the last lower quarter for this band was Q3 2022 (56.91%).
- The typical bank looks different from the pooled ratio. Pooled ratios weight each bank by its revenue. The median $1B–$10B bank ran at 58.75% and the median $10B–$250B bank at 53.71%, a 5.04-point difference, much wider than the pooled gap.
- Small banks vary the most. The middle half of banks under $100M ran between 57.80% and 82.75% in Q2 2026, a spread of 24.95 points. For banks over $250B the spread was 7.95 points.
- The smallest band keeps shrinking. The FDIC counted 637 insured institutions under $100M in Q1 2025 and 543 in Q2 2026, a 14.8% decline. Band counts change as banks grow across a band line, merge or close; this data does not separate those effects.
The data shows levels and changes. It does not show which costs drive them. Source: FDIC BankFind Suite API (call report financials, pulled 4 October 2026), recomputed by StratEdge. Pooled ratios and institution counts match the FDIC QBP time series (Q2 2026 vintage) for every band and quarter.
Six-quarter trend by asset size, Q1 2025–Q2 2026
Pooled efficiency ratio for each FDIC asset band: total noninterest expense (less amortization of intangibles) divided by total net operating revenue for every bank in the band. Fourth-quarter expense runs seasonally high, so compare a quarter with the same quarter a year earlier.
| Asset size | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
| < $100M | 61.70% | 59.12% | 59.17% | 79.56% | 77.44% | 76.47% |
| $100M–$1B | 68.25% | 65.60% | 64.36% | 67.01% | 66.15% | 64.64% |
| $1B–$10B | 61.33% | 59.42% | 57.97% | 58.58% | 58.52% | 57.43% |
| $10B–$250B | 55.24% | 55.17% | 54.98% | 57.37% | 56.36% | 56.59% |
| > $250B | 54.83% | 54.08% | 53.16% | 53.28% | 54.41% | 53.74% |
| All insured | 56.23% | 55.51% | 54.76% | 55.70% | 55.91% | 55.38% |
| < $100M excl. FDS Bank* | 76.94% | 74.97% | 74.13% | 79.56% | 77.44% | 76.47% |
| Institutions | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
| < $100M | 637 | 623 | 611 | 573 | 551 | 543 |
| $100M–$1B | 2,788 | 2,754 | 2,719 | 2,713 | 2,682 | 2,647 |
| $1B–$10B | 880 | 890 | 895 | 900 | 892 | 890 |
| $10B–$250B | 143 | 141 | 142 | 136 | 138 | 140 |
| > $250B | 14 | 13 | 12 | 16 | 16 | 18 |
| All insured | 4,462 | 4,421 | 4,379 | 4,338 | 4,279 | 4,238 |
*FDS Bank (FDIC cert 33831, now inactive) reported in the under-$100M band from Q1 2025 through Q3 2025 with a very low efficiency ratio (14.45% in Q2 2025). It pulled that band's pooled ratio to about 59%–62% in those quarters. With it excluded, the band ran between 74.13% and 79.56% across all six quarters. Source: FDIC BankFind Suite API (call report financials, pulled 4 October 2026), recomputed by StratEdge. Pooled ratios and institution counts match the FDIC QBP time series (Q2 2026 vintage) for every band and quarter.
Median and quartile efficiency ratios by asset size
The pooled ratio describes each band as if it were one bank, so the largest banks in a band dominate it. The per-bank distribution shows what a typical bank in the band looks like. The 25th percentile is the ratio a quarter of banks beat; the 75th percentile is the ratio a quarter of banks exceed.
| Asset size, Q2 2026 | Banks | 25th pct. | Median | 75th pct. | Pooled |
|---|---|---|---|---|---|
| < $100M | 543 | 57.80% | 70.48% | 82.75% | 76.47% |
| $100M–$1B | 2,645 | 53.25% | 61.72% | 71.76% | 64.64% |
| $1B–$10B | 888 | 50.75% | 58.75% | 67.59% | 57.43% |
| $10B–$250B | 140 | 47.39% | 53.71% | 59.76% | 56.59% |
| > $250B | 18 | 51.31% | 53.92% | 59.26% | 53.74% |
| All insured | 4,234 | 52.61% | 61.39% | 72.07% | 55.38% |
Median bank efficiency ratio, six quarters
| Asset size | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
| < $100M | 73.33% | 71.52% | 70.62% | 76.98% | 71.48% | 70.48% |
| $100M–$1B | 66.13% | 63.33% | 62.64% | 64.37% | 63.31% | 61.72% |
| $1B–$10B | 63.26% | 60.48% | 59.52% | 60.00% | 59.98% | 58.75% |
| $10B–$250B | 57.23% | 56.19% | 55.71% | 55.01% | 55.21% | 53.71% |
| > $250B | 57.28% | 54.55% | 53.87% | 54.69% | 55.11% | 53.92% |
| All insured | 65.94% | 63.27% | 62.26% | 64.06% | 63.13% | 61.39% |
Per-bank ratios use the same formula as the pooled ratio, computed for each bank. Banks with zero or negative net operating revenue in a quarter are left out of the distribution (4 of 4,238in Q2 2026) but stay in the pooled ratio and the counts. Quartiles use linear interpolation. FDS Bank is one of more than 600 banks in its band, so it barely moves the band's quartiles; no exclusion is applied to them. Source: FDIC BankFind Suite API (call report financials, pulled 4 October 2026), recomputed by StratEdge. Pooled ratios and institution counts match the FDIC QBP time series (Q2 2026 vintage) for every band and quarter.
Efficiency ratios for community banks under $1B
In Q2 2026, 3,190 of the 4,238 FDIC-insured institutions (75.3%) had less than $1B in assets. Together they held $1,058B, or 4.0% of industry assets. Their combined pooled efficiency ratio was 65.05%, against 55.38% for the industry.
Within that group, the median bank with $100M–$1B in assets ran at 61.72%, and the median bank under $100M at 70.48%. Both medians are lower than their band's pooled ratio (64.64% and 76.47%), which means a revenue-weighted view of these bands sits above the typical bank in them.
This page groups banks by asset size only. The FDIC's own "community bank" designation, used in the QBP community bank section, is not based on asset size alone, so figures here are not the FDIC community bank aggregates.
Quarter-over-quarter and year-over-year
| Asset size | Institutions | Total assets | Q2 2026 | vs Q1 2026 | vs Q2 2025 (as reported) | vs Q2 2025 excl. FDS Bank* |
|---|---|---|---|---|---|---|
| < $100M | 543 | $34.0B | 76.47% | −0.97 | +17.35 | +1.50 |
| $100M–$1B | 2,647 | $1,024.0B | 64.64% | −1.51 | −0.96 | −0.96 |
| $1B–$10B | 890 | $2,480.2B | 57.43% | −1.09 | −1.99 | −1.99 |
| $10B–$250B | 140 | $6,071.0B | 56.59% | +0.23 | +1.42 | +1.42 |
| > $250B | 18 | $16,853.0B | 53.74% | −0.67 | −0.34 | −0.34 |
| All insured | 4,238 | $26,462.2B | 55.38% | −0.53 | −0.13 | −0.16 |
Changes are percentage points. Q1 2026 and Q2 2025 comparison values are the FDIC's current (Q2 2026-vintage) figures. *FDS Bank (FDIC cert 33831, now inactive) reported in the <$100M band from Q1 2025 through Q3 2025 with a 14.45% efficiency ratio in Q2 2025, which pulled that band's Q2 2025 ratio down to 59.12%. Excluding it, the band was 74.97%, so the like-for-like year-over-year change for banks under $100M is +1.50 points, not +17.35. Source: FDIC Quarterly Banking Profile, Table III-A — Second Quarter 2026, All FDIC-Insured Institutions (released August 25, 2026) (n = 4,238 institutions).
Questions about this data
What is a bank efficiency ratio?
The FDIC defines it as noninterest expense, less amortization of intangible assets, divided by the sum of net interest income and noninterest income. A ratio of 60% means the bank spent 60 cents in noninterest expense for each dollar of net operating revenue. Lower is more efficient. The ratios here are for a single quarter, not year-to-date.
Why is the median different from the pooled ratio?
The pooled ratio adds up expense and revenue across every bank in a band before dividing, so banks with more revenue carry more weight. The median is the middle bank when every bank's own ratio is ranked. Use the pooled ratio to match FDIC publications; use the median and quartiles to place a single bank against its peers.
Why did banks under $100M show about 59% in mid-2025?
One institution, FDS Bank, reported unusually high noninterest income relative to its size while it sat in the under-$100M band (Q1–Q3 2025). Because the band is small, that bank alone moved the pooled ratio by 15 to 16 points. The table above shows the band with and without it. FDS Bank's last filing was for 30 September 2025.
Can I compare these numbers with the Credit Union Index?
Not directly. The Credit Union Index uses NCUA 5300 data, a different ratio definition and different asset bands.
Where StratEdge fits
This index measures expense levels; it does not show which costs drive them. StratEdge gives back-office teams one control layer for intake, documents, tasks, and AI-assisted review. Live, with existing customers. Built for credit unions and third-party administrators.
Methodology
Q2 2026 band figures are republished from FDIC Quarterly Banking Profile Table III-A (Second Quarter 2026, all FDIC-insured institutions, released 25 August 2026) and the QBP time-series spreadsheet of the same vintage. The FDIC efficiency ratio is noninterest expense less amortization of intangible assets, divided by net interest income plus noninterest income. Asset-size bands match FDIC reporting bands. The universe is FDIC-insured commercial banks and savings institutions.
Six-quarter trend and quartiles. StratEdge pulled bank-level call report data for each quarter-end from 31 March 2025 to 30 June 2026 from the FDIC BankFind Suite API (fields ASSET, NONIXQ, EAMINTQ, NIMQ, NONIIQ, BKCLASS). Records with BKCLASS NC (non-insured) or OI (insured U.S. branches of foreign banks) are excluded. Each bank is placed in a band by total assets at quarter end (under $100M, $100M to under $1B, $1B to under $10B, $10B to under $250B, $250B and over). The pooled ratio for a band is Σ(NONIXQ − EAMINTQ) ÷ Σ(NIMQ + NONIIQ). For every band and quarter, the institution counts and pooled ratios match the FDIC QBP time series to two decimals.
FDIC figures for past quarters are revised as banks amend call reports, so values here are the Q2 2026 vintage and can differ slightly from what the FDIC first published for each quarter. This ratio is not defined the same way as the Credit Union Index ratio, and the asset bands differ; do not compare bank and credit union ratios directly.
Version notes. 2026Q2.2 (4 October 2026): added the Q1 2025–Q2 2026 trend, per-bank medians and quartiles, the under-$1B section, and a trend CSV. 2026Q2.1 (October 2026): refreshed from FDIC QBP Q4 2025 to Q2 2026; added quarter-over-quarter and year-over-year comparisons, the FDS Bank caveat, and a CSV download. Earlier edition: Q4 2025 (FDIC QBP released 24 February 2026).
Download the Q2 2026 summary (CSV) · Download the six-quarter trend with quartiles (CSV) · Band-level aggregates only, derived from public FDIC data. Licensed CC BY 4.0; credit the FDIC as the data source.
How to cite
StratEdge Workflow Systems (2026). The StratEdge Bank Index: Community Bank Efficiency Ratio by Asset Size, Q2 2026 (with Q1 2025–Q2 2026 trend). Data: FDIC Quarterly Banking Profile and FDIC BankFind Suite. https://www.stratedgeworkflow.com/bank-index. Accessed [date].
Data questions: contact@stratedgeworkflow.com