A robust return on average tangible common equity, a low efficiency ratio and surging loan growth pushed Southfield, Mich.-based Sterling Bancorp Inc. up one spot to the top of the podium in S&P Global Market Intelligence's 2017 ranking of the top-performing community banks between $1 billion and $10 billion in assets.

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Founded in 1994, Sterling Bancorp operates 26 branches across California, Michigan and New York. Twenty-four of the offices are based in California, 19 of which are in the San Francisco-Oakland-Hayward MSA. Last year, the thrift completed an initial public offering on Nov. 16 and its stock has since returned 21.3% as of March 9, compared to a 8.4% gain for the S&P 500.
Sterling's loan portfolio increased by more than 36% during 2017, helped by a 38% surge in one- to four-family loans. The thrift was highly profitable as well, posting a 37.85% return before tax on average tangible common equity and a 4.14% net interest margin for 2017. Despite growing at a fast pace, the thrift reported an efficiency ratio of 35.22% for the year, much lower than the top 100 median of 53.90%.
Los Angeles-based RBB Bancorp took the second spot in the 2017 ranking, helped by a 25.54% return on average tangible common equity and a 0.05% net recovery ratio. RBB's subsidiary, Royal Business Bank, was third in the 2016 ranking.
Doraville, Ga.-based Metro City Bank fell to the No. 7 spot in 2017 after taking the gold in the 2016 ranking. The bank's credit quality dipped slightly in 2017 and loan growth slowed. However, Metro City's 46.36% return on average tangible common equity was still the highest among the top 100 community banks between $1 billion and $10 billion in assets.

California had 22 banks and thrifts in the top 100, more than any other state. Texas came in second with 11 institutions, followed by Indiana, Illinois, Michigan, New York and Utah at four apiece.

Click here for an article on the top-performing community banks with less than $1 billion in assets for 2017.
Click here for an article on the top-performing community banks with between $1 billion and $10 billion in assets for 2016.
Click here for an article on the top-performing community banks with less than $1 billion in assets for 2016.

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